Subscription services are cropping up more and more, providing customers with a monthly dose of products they may not otherwise know about.
From Birchbox, to BarkBox, Plated and NatureBox, these start-ups are engaging a passionate group of consumers and are driving product discovery.
But do these businesses successful retain customers and keep them loyal? The RTP team shares their thoughts and experiences with subscription services:
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Debbie Hauss, Editor-in-Chief: This type of model can work well for companies trying to expand their consumer base or test new products. It also can help introduce a new brand on a smaller scale in order to test the concept for a larger introduction. Product quality and diversity will be key to success. Beyond sample subscriptions, other types of subscription services have seen limited success, in my opinion. For example, my son tried a shave club but wasn’t happy with the quality or selection. I tested a wine club subscription but when the company wanted me to pay a fee on top of the monthly cost of the products, I balked. Generally, I wouldn’t put all my marketing “eggs” in one subscription box strategy.
Alicia Fiorletta, Senior Editor: I think the key to a successful subscription service is providing a great selection of products, flexibility and service. I’ve tried my hand at a few subscription services. After a year I unsubscribed to one service because the company started sending me the same product samples over and over. in my opinion, the value of these services is discovering new products. So the fact that I was getting the same product made me lose interest. However, I’m now a happy member of another service, which tailors the boxes based on personal tastes and styles. Customers also get to get a sneak peek at their boxes, and swap out products they already have or don’t like. This makes customers more satisfied with their monthly purchase, and gets them excited to try the new products.
Kim Zimmermann, Managing Editor: I think the key is to make it affordable and easy to sign up and opt out. I know several friends who are dog owners who have a subscription service for dog products and love it. I might not want to pay for a big bag of treats that will go to waste if the dog turns his nose up at them (as mine sometimes does), but if I can try the out as part of an affordable subscription, the dog may stop barking incessantly at the mailman and actually look forward to deliveries.
Glenn Taylor, Associate Editor: Subscription boxes aren’t guaranteed to satisfy consumers every time they’re delivered to someone’s front door. However, the guessing game that comes along every month can bring a sense of excitement to the consumer as long as the products are on the mark most of the time. If the business model constantly evokes a positive feeling, I think it can be valuable to little-known businesses that have partnered up with subscription box companies to distribute their products.
Brian Anderson, Associate Editor: SMBs and start-ups can greatly benefit from partnering with subscription service companies – such as NatureBox – due to the considerable boost in brand awareness. It is common for detailed information about each product to be shipped in these box services, providing customers with additional insights on the brand and its entire product line. This level of reach is oftentimes unavailable to smaller retailers, so partnering with companies that offer box subscriptions can help the company grow exponentially.
Samantha Polak, Editorial Intern: I think subscription boxes are a great concept for picky shoppers and those who continuously suffer from buyer’s remorse. Personally, I can spend hours in a store debating between two brands, wondering which one I’m actually going to like and if it will be worth the money. Subscription services can resolve this “checkout anxiety” by providing consumers the chance to sample products before purchasing full sizes. The boxes also introduce shoppers to new brands and products that they wouldn’t have otherwise tried, helping up-and-coming businesses grow their consumer base and increase brand loyalty.
Krystal Vadhar, Social Media Manager: As someone who enjoys trying out different subscription services, I see many benefits from enlisting in this new business model. There seems to be a subscription box that caters to all types of interests, age groups, hobbies and much more. Likewise, there are many different businesses that range in different prices. The biggest pro I see from this model is the fact that these services ship the items directly to you on a timed basis (usually monthly). Consumers enjoy shopping and even more so, receiving presents. By subscribing to these boxes, they are signing up to gift themselves multiple samples of presents every month! In turn, consumers can try out products in the convenience of their own homes and decide whether or not they would like to purchase more items.
What are your thoughts on subscription services? Share your thoughts in the comments section below!
