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THE LEADER'S GUIDE TO THE FOREVER TRANSACTION
Author(s) -
Baxter Robbie Kellman
Publication year - 2020
Publication title -
leader to leader
Language(s) - English
Resource type - Journals
eISSN - 1531-5355
pISSN - 1087-8149
DOI - 10.1002/ltl.20511
Subject(s) - database transaction , business , loyalty , marketing , set (abstract data type) , loyalty business model , advertising , service (business) , computer science , service quality , programming language
This article discusses what the author calls a Forever Transaction, an ongoing, formal relationship with the people your organization services. A Forever Transaction is that moment when the customer takes off their shopper hat, dons their member hat, and stops looking for alternatives to solve a particular problem or achieve a specific goal. The customer now trusts you enough to let you charge them on a regular basis, forever. Using tactics like subscription pricing, premium loyalty programs, and digital community in which customers connect with one another via the Internet and under the organization's brand, these new business models are changing how we do nearly everything. It encompasses categories such as work (LinkedIn, Slack, Caterpillar), play (Peleton, Electronic Arts), eating (Blue Apron, Burger King), shopping (Amazon, Restoration Hardware), travel (Surf Air, Porsche Passport), and more. Eight steps are outlined to understand what's required of leaders and the rest of their organizations the first five are as follows: Step 1, set expectations with stakeholders; Step 2, assess and rethink corporate culture; Step 3, develop the right team for the membership economy; Step 4, track your leading indicators of success: CEO dashboard; and Step 5, understand the risk, then swim toward transformation.