Joe Magnacca recently shared with me his thoughts on transforming health and wellness into a subscription model. As background, Massage Envy has 25,000 massage therapists serving 1.5 million members through almost 1,200 franchised locations.
Prior to this Joe has been President of Walgreens and Duane Reade and CEO of Radio Shack, so he understands the full continuum of success.
Joe explained the key is to make memberships ‘sticky’ with great customer experience at the core. Analytics and technology track members’ preferences creating identical experiences at each franchise location and the opportunity to re-experience this at home with branded products. Joe said, “It’s important for us to know you better than you know yourself.”
When asked his thinking on membership / subscription models, he offered: “Businesses must think of a membership as more than the initial commitment. The ability to enhance relationships through data management is key to your profitability.”
So, my message to CEOs is if you are looking to transform your enterprise, one of the great business model opportunities of our time is figuring out how you can succeed in what is being called ‘the subscription economy.’