The most challenging issue that middle- and small-sized companies face is that they do not have a customer-oriented marketing strategy. Marketing difficulty factors of medium- and small-sized companies include the lack of marketing experts and capital as well as securing a distribution network. This platform suggests an effective and innovative marketing platform based on an accurate understanding of customers and the market to remove such marketing difficulties of medium- and small-sized companies. “Social membership marketing platform“ is a bidirectional membership platform in which more than two independent companies establish a long-term partnership and mutual interests by sharing the resources of the “market“ with a membership system. It is the first bidirectional membership platform in the world that overcomes the weaknesses of existing individual company–level membership services as well as those of large company–level, market-oriented, integrated, and open-type memberships.
Moreover, constant growth business strategy of a company is possible by combining creating shared value (CSV) with a membership system. It is a sharing platform that creates economic value and social value at the same time by redistributing nonoperating income and not the operating revenue that the company generates.
“Social membership marketing platform” has an advantage of reducing expenses, reducing marketing costs, membership service construction in which the individual company becomes the main agent, regional profit increase of the company, creating economic and social value via the CSV of the company for medium- and small-sized companies, as well as providing the convenience and compatibility of using membership for customers.
Today, medium- and small-sized companies face new competitive environments, such as globalization, customer demand increase and diversification, reduced market response time, and deregulation. Such change in environment intensifies competition, for which companies make an effort to interact with other economic subjects naturally for survival and success.
“Social membership marketing platform” emphasizes the importance of cooperation and network as an effective marketing strategy to overcome ”poor sales.” In the past, the success or failure of the company’s competitiveness depends on the individual company’s competence, but today’s global competitive structure as well as industrial fusion and complexation trend changes the competition between companies into a competition system between company ecosystems, in which the performance of a cooperative network becomes of utmost importance
* Specific Service Method
Bidirectional market interlocking is possible between independent companies by providing API of membership issuing for an independent company to operate membership service on its own (bar code + serial number). That is, when independent A company provides discount information on B, C, and D companies’ products for its own members as a membership service, the member of A company can purchase products with a discounted price by visiting the online sites and affiliated stores of B, C, and D companies that interlock the market.
Likewise, the members of independent B company can purchase the products of A, C, and D companies with a discounted price by visiting the online sites and affiliated stores of A, C, and D companies that interlock the market.
Therefore, bidirectional membership service is possible because independent A, B, C, and D companies provide interlocked market membership services for independent members. Mutual cross marketing <Figure 1> is realized because its own product information is provided for other companies’ site members.
Note that, in this context, when an independent company’s member who has the membership visit the online sites and affiliated stores of other companies and purchase products, the company has to pay over 3% commission to that company member <Figure 2>. CSV activity is possible by contributing over 0.1% commission to nonprofit organizations under the condition of using the platform.
Meanwhile, independent customers receive saving benefits according to the discount of the products and use when purchasing; Company A, which provides product information, has promotional effects and earns profit because of product sales; and Company B earns nonoperating income because of commission.
Thus, as a whole, companies that participate in market sharing can grow together by constructing a large market with an integrated and mutually independent service that concerns members’ use of saved money for members. Moreover, CSV activity of economic and social value creation is possible by contributing nonoperating income to nonprofit organizations.
The existing membership card adopts the company’s independent discount-/saving-providing methods, and it is used as a discount system for a specific company’s member service. Such an independent discount-/saving-providing method by the company has high dependence on a specific company because of system introduction costs, operation costs, and member retention ratio, and occurring profit is created with a centralized type.
* Advantages of a “Social Membership Marketing Platform“ in Respect to the Company
1. Reduction of system costs, operation costs, and management costs for medium- and small-sized companies to introduce membership marketing services
2. Reduction of marketing costs for medium- and small-sized companies
3. Open-type membership service construction is possible with the service securing and increasing the loyalty of existing customers by each independent company that becomes a service subject of each membership marketing service via API interlocking.
4. Increased sales profit of the company
5. Increased nonoperating income of the company