With everyone learning how to live with social distancing. Retailers and consumers alike are having to think in and outside of the box to adapt. Today the convenience of getting home deliveries is common place. For consumers that include not just groceries but all types of goods such as pet products, cosmetics, and more.
Last year, there were about 3,500 subscription boxes for consumers to choose from (40% increase from 2018). Fast forward to 2020 and the subscription box economy is booming and not just with new start-ups. Traditional retailers are also entering the market – seeking new channels to market their products beyond their physical store.
So, what is the winning formulae for building a successful subscription box business in the current environment? We’re sharing our top 3 tips to unpack the benefits of the subscription box economy.
1. Know Your Customer Lifetime Value
Understanding the customer’s average lifetime value is a vitally important metric for subscription box retailing. Calculating the revenue value of a subscriber over time and the number of months they have retained their subscription helps to identify valuable customer segments that offer the potential for growth.
For example, drinks subscription box services offer a wide variety of accessories and snacks to complement their box offering. Why? Because driving up the ROI for each subscriber is more efficient than acquiring new customers.
2. Own the Delivery Experience
It’s not enough to offer a unique curation of products, as these are easy to replicate. Recognise and understand that the unboxing moment is the first occasion when the customer interacts with the brand. The shipping promise is an integral part of that overall customer engagement experience.
Don’t leave this crucial part of the business with the carrier, take control, and own the parcels delivery journey. Applications like SmartConsign RapidX are designed specifically with subscription box business shipping and fulfilment needs in mind. Test the application against your existing carrier management system and sign-up only if you’re happy with the result.
3. Embrace Social Commerce
Social commerce is playing a growing role in all aspects of the customer journey. Unlike traditional eCommerce channels, social commerce happens in real-time, which means making the most of ‘micro’ moments quickly.
A team with their finger on the pulse in the fast-paced social media world is, therefore, worth its weight in gold. It’s only a matter of time before Facebook releases capabilities to enable users to purchase directly from their platform. Having the ability to turn social interactions into valuable revenue opportunities is key to driving growth.
Growing a Subscription Box Business Today!
Subscription boxes take the hassle out of shopping whilst allowing the consumer the opportunity to regularly treat themselves. When at home social distancing, subscription boxes become more than just a package. The most astute subscription box retailers understand that and are adapting their business model to tap into current consumer sentiments. From marketing to shipping getting the formulae right is key to growing a successful subscription box business. SmartConsign is built to support the parcel shipping aspect of the subscription box market. The software application integrates all major carriers and couriers, it’s uniquely designed to help make the parcel delivery experience easier and faster. Subscription box retailers, have complete control of their label production, route management, carrier selection and more from a single touchpoint.