Subscription (Continuity) Programs

By - November 1, 2021

Subscriptions, Automatic renewals, Recurrences, Continuity programs – whatever you call them these programs are the latest marketing tool Retailers are using to capture new customers and retain those customers for an identifiable period of time.  The Subscription model has proven to be so successful that Pillars of the Retail community like Walmart and Amazon are bringing to the market their own subscription programs, this has provided the much needed “street cred” that pushes the boundaries of consumer behavior.  At one time Netflix was some crazy “streaming” service my kids used to avoid paying for cable, now it is a mainstay for many households.

Unlike traditional marketing programs, Retailers use to capture new customers where a customer’s order value can vary and the investment to capture those customers may not be justified by the lifetime value; Subscription customers are committed to a predefined number of orders.   This model allows a Retailer to drive new customer behavior, improve that customer’s overall lifetime value and increase customer loyalty.

When implementing a Subscription program Retailers enjoy the benefit of staying in contact with customers on a regular basis (weekly, monthly, quarterly) without the added expense of traditional marketing campaigns.  By simply leveraging, a customer’s regularly scheduled shipment a Retailer is provided the opportunity to promote cross sell products or services.

The Subscription model is a concept that provides opportunities to any Retailer regardless of their product line.  In the market today, Retailers are offering subscriptions for anything from food and beverage options like meal kits, snacks, smoothies, beer and wine to cosmetics to clothes to collectibles to entertainment.  Retailers that want to provide the ease of sending out refills for products a consumer has already purchased are finding ways to make the most of a subscription model. Add to this the ability to automatically charge for each shipment and the customer’s experience is easy and convenient.

Let’s not forget the time suck aspect of traditional retail shopping; using an online subscription to shop for the week to week necessities can make weekend errands a thing of the past.  Options that are available for meal subscription services are making new and exciting ingredients more accessible.  Wardrobe subscription programs reduce decision making when it comes to what is on trend or fashionable.  A subscription service offers a customer a limited range of options, leveraging the concept of less is more.  This concept has encouraged today’s customer to subscription services, rather than being overwhelmed by the many choices in today’s retail market, subscription services offer options that are more focused, generally driven by the customer’s purchasing history.

“In a world of overwhelming choice, consumers can get stuck when it comes to selecting the items they want. Subscription boxes are the perfect solution to indecisiveness and regret as they curate products according to a customer’s personal preferences, simplifying the process, and letting personalization become the center of the retailer-customer relationship in a way that encourages extreme loyalty.”


Why Subscription Boxes Here to Stay, April 12, 2019


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