Friday, March 22, 2013

Can Newspapers Evolve Into ‘Local Membership’ Organizations?

Streetfight reporting:
In the days before MapQuest and Google Maps, the first stop you’d make when planning a long road trip was often your local AAA office. There — if you were a member — you could get directions, maps, listings of hotels and attractions, and information on discounts at some of the places you were headed. And, of course, if you got stuck somewhere along the way, AAA would give you the tow, jump or gas you needed to be on your way.
And today, even with the the popularity of digital maps (and the prevalence of insurance companies and car manufacturers providing roadside assistance), AAA’s membership base remains strong with about 53 million U.S. members, up about 50% from ten years ago. Each member pays about $60 annually, allowing the organization to more or less “own” the market when it comes to automotive travel membership.
Meanwhile, AARP “owns” the market on membership for senior citizens, and countless other organizations have a similar lock on their own niche areas — charging yearly dues and providing value through discounts and services.  But, so far, I don’t think anyone has really nailed a local membership model, and there are two organizations that have great potential to dominate in this area — local newspapers and the YMCA.
Before we get into their opportunity, though, let’s talk about what I mean by “local membership.”
What makes the AAA model so successful is that they offer a core service (roadside assistance) with other perks. Some people pay for the core service but stay around for the perks — a couple of hotel and restaurant discounts and the membership essentially pays for itself. And a timely towing when stranded might inspire someone to hold onto their membership for decades.
On a local level, families always have products or services they need, and information is one of them. “What to do this weekend? What daycare to use? Are there safety concerns in my neighborhood? What neighborhood should we move to? What summer camps are available for my child?” From a product standpoint they need those home services, day cares or events to attend.
Many families will pay $100-200 annually to join their local science center or zoo so that they know that on any given weekend that can have something to do. That’s a lot of money, but after a couple of visits the membership dues pay for themselves. Getting someone to say just that “it pays for itself” is the key to any successful membership program.
http://streetfightmag.com/2013/03/22/can-newspapers-evolve-into-local-membership-organizations/

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