In late 2012, online shoppers fell under the spell of subscription boxes. Today, their interest is at an all-time high, so we’d like to give you a few pointers on how to start your own subscription box program.
“The idea behind subscription commerce is that your customers pay a monthly fee to receive a selection of goods from your store. From fashion to food, any product you can offer on a recurring basis has a potential spot in a box. To start brainstorming your own offer, check out MySubscriptionAddiction.com.
Subscription boxes have multiple advantages. First, the recurring nature of subscriptions allows you to predict demand and volume every month, which reduces uncertainty and waste. It also gives you a relatively stable, predictable revenue without the wild peaks that traditional retail stores experience.
Secondly, the subscription model reduces a certain number of costs. The predictable nature of this business model makes stock, shipping costs, and resource needs easier to estimate ahead of time. It also requires less investment in retention spend; instead of constantly chasing after new customers for sales, you’ll focus a bit more on keeping loyal customers happy.
Finally, the subscription model is based on a long-term relationship with customers, as opposed to a one-off sale. The advantage is that you’ve got an open line of communication with your customers and regular opportunities to check in and get feedback–which you’ll absolutely need to do to keep your offer fresh and convincing. If you succeed, your brand will become an integral part of your customers’ lives, offering convenience and delight they can’t find anywhere else.”
Read the full article at: www.prestashop.com
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