Business revolution: What is the membership economy?
The membership economy is upending how businesses are structured and how they deliver value to customers.
ROBBIE KELLMAN BAXTER: The membership economy is a term that I coined to describe what I was seeing, starting about 15 years ago when I was working with Netflix and continuing into this massive transformational trend where companies of all types were moving from a model that focuses on ownership to access, from the transactional to the relational, from anonymous to known, from one payment to many smaller payments and from the organization talking at the customer and hoping they're listening to multidirectional communication among customers and back and forth between the customers and the organization under the brand umbrella of the organization. So when you put all of those things together you have this kind of painter's palette to reinvent your business model and that's what's driving this membership economy.
So membership isn't a new concept. We have been joining things for as long as there have been humans. We joined clans or tribes. We've had professional societies and trade guilds for centuries. Charles Dickens sold his novels in subscription format so people subscribed to have access and as he had the chapters done he would deliver them to his subscribers. So this is not a new concept, but what has changed is the ability to build a business model around it that transcends time and space. So Charles Dickens actually had to know the people he was delivering to, had to print it out, had to bring it to them. Today we can deliver it to strangers digitally and we can do it with time lapse. So that has created so many possibilities for organizations to build this ongoing relationship, which is what people want.
One example of the difference between a membership economy company and a non-membership economy company is the comparison between Blockbuster and Netflix. So when people, you know, way back when people used to have to go to the corner store to the Blockbuster on a Friday night to see what movies were available to rent, bring them home and it was never the movie that you really wanted. it was whatever happened to be available. And then if you forgot that you had it and you kept it for a few extra days the cost would end up being like triple what you thought it was going to be. And compare that to Netflix where they sent you three DVDs at a time, so three movies that you had on your long list, your queue. You didn't have to leave your home. You always had three movies at home. And, best of all no late fees. So it's a very different way of thinking about the model that starts with a forever promise. A promise of what it is that you really want to achieve.
So in the case of Netflix versus Blockbuster, which was what really inspired me, what I wanted was to always have movies, professionally created content delivered in the most efficient way possible because I had little babies, with cost certainty—no late fees. And that's what Netflix delivered on 15 years ago that pretty much put Blockbuster out of business. And today even though they have streaming, even though they create their own content, even though a lot has changed at Netflix they still deliver everyday on that promise of professionally created content delivered with cost certainty in the most efficient way possible.
I think that the membership economy is having as big an impact on business as the industrial revolution. What I see is a new way of engaging with the customer, a new set of skills that are required for the professional and a new way for entrepreneurs and business leaders to design the entire model from the ground up. It's creating new businesses everywhere. There are literally hundreds, if not thousands, of new companies that are built in this model. Subscription box businesses, digital content. The reason is that you can start as a solopreneur, as a one-person shop, and you can expand very, very rapidly in many cases because of the ability to share your digital assets widely and the ability to send content or physical products directly to the customer, taking out the middleman. So it's really a rethinking of how businesses are structured and how they deliver value.
- "I think that the membership economy is having as big an impact on business as the industrial revolution," says Silicon Valley consultant Robbie Kellman Baxter.
- Memberships or subscriptions fundamentally change the relationship between the consumer and the brand by delivering what Baxter calls a "forever promise." The famous example of Blockbuster vs. Netflix illustrates this perfectly.
- Subscriptions are not a new idea. Charles Dickens released his books to subscribers one chapter at a time, as he wrote them. What's different today is technology and the speed at which even a one-person business can reach a huge number of customers.
Once a week.
Subscribe to our weekly newsletter.
The COVID-19 pandemic is making health disparities in the United States crystal clear. It is a clarion call for health care systems to double their efforts in vulnerable communities.
- The COVID-19 pandemic has exacerbated America's health disparities, widening the divide between the haves and have nots.
- Studies show disparities in wealth, race, and online access have disproportionately harmed underserved U.S. communities during the pandemic.
- To begin curing this social aliment, health systems like Northwell Health are establishing relationships of trust in these communities so that the post-COVID world looks different than the pre-COVID one.
COVID-19 deepens U.S. health disparities<p>Communities on the pernicious side of America's health disparities have their unique histories, environments, and social structures. They are spread across the United States, but they all have one thing in common.</p><p>"There is one common divide in American communities, and that is poverty," said <a href="https://www.northwell.edu/about/leadership/debbie-salas-lopez" target="_blank">Debbie Salas-Lopez, MD, MPH</a>, senior vice president of community and population health at Northwell Health. "That is the undercurrent that manifests poor health, poor health outcomes, or poor health prognoses for future wellbeing."</p><p>Social determinants have far-reaching effects on health, and poor communities have unfavorable social determinants. To pick one of many examples, <a href="https://www.npr.org/2020/09/27/913612554/a-crisis-within-a-crisis-food-insecurity-and-covid-19" target="_blank" rel="noopener noreferrer">food insecurity</a> reduces access to quality food, leading to poor health and communal endemics of chronic medical conditions. The U.S. Centers for Disease Control and Prevention has identified some of these conditions, such as obesity and Type 2 diabetes, as increasing the risk of developing a severe case of coronavirus.</p><p>The pandemic didn't create poverty or food insecurity, but it exacerbated both, and the results have been catastrophic. A study published this summer in the <em><a href="https://link.springer.com/article/10.1007/s11606-020-05971-3" target="_blank">Journal of General Internal Medicine</a></em> suggested that "social factors such as income inequality may explain why some parts of the USA are hit harder by the COVID-19 pandemic than others."</p><p>That's not to say better-off families in the U.S. weren't harmed. A <a href="https://voxeu.org/article/poverty-inequality-and-covid-19-us" target="_blank" rel="noopener noreferrer">paper from the Centre for Economic Policy Research</a> noted that families in counties with a higher median income experienced adjustment costs associated with the pandemic—for example, lowering income-earning interactions to align with social distancing policies. However, the paper found that the costs of social distancing were much greater for poorer families, who cannot easily alter their living circumstances, which often include more individuals living in one home and a reliance on mass transit to reach work and grocery stores. They are also disproportionately represented in essential jobs, such as retail, transportation, and health care, where maintaining physical distance can be all but impossible.</p><p>The paper also cited a positive correlation between higher income inequality and higher rates of coronavirus infection. "Our interpretation is that poorer people are less able to protect themselves, which leads them to different choices—they face a steeper trade-off between their health and their economic welfare in the context of the threats posed by COVID-19," the authors wrote.</p><p>"There are so many pandemics that this pandemic has exacerbated," Dr. Salas-Lopez noted.</p><p>One example is the health-wealth gap. The mental stressors of maintaining a low socioeconomic status, especially in the face of extreme affluence, can have a physically degrading impact on health. <a href="https://www.scientificamerican.com/index.cfm/_api/render/file/?method=inline&fileID=123ECD96-EF81-46F6-983D2AE9A45FA354" target="_blank" rel="noopener noreferrer">Writing on this gap</a>, Robert Sapolsky, professor of biology and neurology at Stanford University, notes that socioeconomic stressors can increase blood pressure, reduce insulin response, increase chronic inflammation, and impair the prefrontal cortex and other brain functions through anxiety, depression, and cognitive load. </p><p>"Thus, from the macro level of entire body systems to the micro level of individual chromosomes, poverty finds a way to produce wear and tear," Sapolsky writes. "It is outrageous that if children are born into the wrong family, they will be predisposed toward poor health by the time they start to learn the alphabet."</p>Research on the economic and mental health fallout of COVID-19 is showing two things: That unemployment is hitting <a href="https://www.pewsocialtrends.org/2020/09/24/economic-fallout-from-covid-19-continues-to-hit-lower-income-americans-the-hardest/" target="_blank" rel="noopener noreferrer">low-income and young Americans</a> most during the pandemic, potentially widening the health-wealth gap further; and that the pandemic not only exacerbates mental health stressors, but is doing so at clinically relevant levels. As <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7413844/" target="_blank" rel="noopener noreferrer">the authors of one review</a> wrote, the pandemic's effects on mental health is itself an international public health priority.
Working to close the health gap<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDc5MDk1MS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYxNTYyMzQzMn0.KSFpXH7yHYrfVPtfgcxZqAHHYzCnC2bFxwSrJqBbH4I/img.jpg?width=980" id="b40e2" class="rm-shortcode" data-rm-shortcode-id="1b9035370ab7b02a0dc00758e494412b" data-rm-shortcode-name="rebelmouse-image" />
Northwell Health coronavirus testing center at Greater Springfield Community Church.
Credit: Northwell Health<p>Novel coronavirus may spread and infect indiscriminately, but pre-existing conditions, environmental stressors, and a lack of access to care and resources increase the risk of infection. These social determinants make the pandemic more dangerous, and erode communities' and families' abilities to heal from health crises that pre-date the pandemic.</p><p>How do we eliminate these divides? Dr. Salas-Lopez says the first step is recognition. "We have to open our eyes to see the suffering around us," she said. "Northwell has not shied away from that."</p><p>"We are steadfast in improving health outcomes for our vulnerable and underrepresented communities that have suffered because of the prevalence of chronic disease, a problem that led to the disproportionately higher death rate among African-Americans and Latinos during the COVID-19 pandemic," said Michael Dowling, Northwell's president and CEO. "We are committed to using every tool at our disposal—as a provider of health care, employer, purchaser and investor—to combat disparities and ensure the <a href="https://www.northwell.edu/education-and-resources/community-engagement/center-for-equity-of-care" target="_blank" rel="noopener noreferrer">equity of care</a> that everyone deserves." </p><p>With the need recognized, Dr. Salas-Lopez calls for health care systems to travel upstream and be proactive in those hard-hit communities. This requires health care systems to play a strong role, but not a unilateral one. They must build <a href="https://www.northwell.edu/news/insights/faith-based-leaders-are-the-key-to-improving-community-health" target="_blank" rel="noopener noreferrer">partnerships with leaders in those communities</a> and utilize those to ensure relationships last beyond the current crisis. </p><p>"We must meet with community leaders and talk to them to get their perspective on what they believe the community needs are and should be for the future. Together, we can co-create a plan to measurably improve [community] health and also to be ready for whatever comes next," she said.</p><p>Northwell has built relationships with local faith-based and community organizations in underserved communities of color. Those partnerships enabled Northwell to test more than 65,000 people across the metro New York region. The health system also offered education on coronavirus and precautions to curb its spread.</p><p>These initiatives began the process of building trust—trust that Northwell has counted on to return to these communities to administer flu vaccines to prepare for what experts fear may be a difficult flu season.</p><p>While Northwell has begun building bridges across the divides of the New York area, much will still need to be done to cure U.S. health care overall. There is hope that the COVID pandemic will awaken us to the deep disparities in the US.</p><p>"COVID has changed our world. We have to seize this opportunity, this pandemic, this crisis to do better," Dr. Salas-Lopez said. "Provide better care. Provide better health. Be better partners. Be better community citizens. And treat each other with respect and dignity.</p><p>"We need to find ways to unify this country because we're all human beings. We're all created equal, and we believe that health is one of those important rights."</p>
Shannon Lee shares lessons from her father in her new book, "Be Water, My Friend: The Teachings of Bruce Lee."
- Bruce Lee would have turned 80 years old on November 27, 2020. The legendary actor and martial artist's daughter, Shannon Lee, shares some of his wisdom and his philosophy on self help in a new book titled "Be Water, My Friend: The Teachings of Bruce Lee."
- In this video, Shannon shares a story of the fight that led to her father beginning a deeper philosophical journey, and how that informed his unique expression of martial arts called Jeet Kune Do.
- One lesson passed down from Bruce Lee was his use and placement of physical symbols as a way to help "cement for yourself this new way of being, or this new lesson you've learned." By working on ourselves (with the right tools), we can develop the skills necessary to rise and conquer new challenges.
How to deal with "epistemic exhaustion."
Philosopher Nick Bostrom's "singleton hypothesis" predicts the future of human societies.
- Nick Bostrom's "singleton hypothesis" says that intelligent life on Earth will eventually form a "singleton".
- The "singleton" could be a single government or an artificial intelligence that runs everything.
- Whether the singleton will be positive or negative depends on numerous factors and is not certain.
Want to Retain American Jobs? Stop Blaming Globalization<div class="rm-shortcode" data-media_id="oxK8j1xN" data-player_id="FvQKszTI" data-rm-shortcode-id="2cf425d7b91ed2a6fc4fe19d065f3408"> <div id="botr_oxK8j1xN_FvQKszTI_div" class="jwplayer-media" data-jwplayer-video-src="https://content.jwplatform.com/players/oxK8j1xN-FvQKszTI.js"> <img src="https://cdn.jwplayer.com/thumbs/oxK8j1xN-1920.jpg" class="jwplayer-media-preview" /> </div> <script src="https://content.jwplatform.com/players/oxK8j1xN-FvQKszTI.js"></script> </div>
A strange object found in Utah desert has prompted worldwide speculation about its origins.
- A monolithic object found in a remote part of Utah caused worldwide speculation about its origins.
- The object is very similar to the famous monolith from Stanley Kubrick's "2001: Space Odyssey".
- The object could be work of an artist or even have extraterrestrial origins.
1. ART OBJECT<p>Chances are, this is an art object. The shiny "monolith" appears to be bolted to the ground and made of metal. It also seems to be fastened with rivets, rather being a uniform block of more unexplainable production origin. Deserts are great places for unusual art installations as has been evidenced by art projects you can discover wondering through the desert ghost towns and faraway canyons of Nevada, California, Utah and New Mexico. Certainly, an artist with a sense of humor and an appreciation of Kubrick's genius could have installed such "sculpture" in hopes of exactly what is happening right now – viral fame.</p><p>On the other hand, there is evidence, courtesy of eagle-eyed <a href="https://www.reddit.com/r/news/comments/jzkpad/helicopter_pilot_finds_strange_monolith_in_remote/gdg9qfi?utm_source=share&utm_medium=web2x&context=3" target="_blank">Google Earth sleuths</a>, that the object appeared in that location (somewhere near <a href="https://www.nps.gov/cany/index.htm" target="_blank" rel="noopener noreferrer">Canyonlands National Park</a>) in 2015-2016. So it's possibly been there for a few years. Would an artist have placed it there so long ago with the aim of having this type of success eventually?</p><p>A gallery owner <a href="https://www.9news.com.au/world/utah-monolith-desert-mystery-solved-john-mccracken-sculptor-artist-2001-a-space-odyssey/0bae1a27-5bd2-451e-90a6-393928d9ed02" target="_blank">claimed</a> the work may be a tribute to the art of the late artist John McCracken, who created similar-looking objects before he died in 2011. McCracken was part of the Light and Space movement with such artists as James Turrell, and was known to make his sculptures from plywood forms that were coated with fiberglass and polyester resin.</p><p>While the theory that the monolith was the work of a McCracken aficionado (or the artist himself) may hold some water due to the object's similarity, the fact that the artist died so long ago and the lack of clear incentive for anyone to have planted this years ago only to reveal it now work against this theory.</p>
John McCracken sculptures.