The Lowdown on Subscription Boxes
The way people purchase daily items as well as gift items has changed exponentially in the last decade alone. Online retailers have revolutionized personalization and availability of product, keeping everything anyone could want right at their fingertips.
One new evolution of the online shopping experience is retail subscription boxes. A 2016 study shows that $2.6 billion was generated from retailers who provide the option of subscription boxes, and the subscribers are mostly made up of urban millennials with a set of values when it comes to consumerism, and hard-earned dollars to spend.
What Are Subscription Boxes?
Subscription boxes are kits assembled by the retailer that are delivered to the customer on a usually ongoing basis. These boxes highlight the retailer’s products and ideally provide a prime example of what the retailer represents.
Types of Boxes
Types of subscription boxes include boxes for replenishment of useful products, special access boxes, and personalized curation boxes.
Special access boxes usually provide extra add-on products or services to your normal customer experience, such as special meal plans or workout videos from fitness companies.
The most popular type of subscription box is the curated box, which usually provides personalized “treat” items monthly at a low cost based on a customer survey that identifies your interests and individual tastes. Examples of personalized curation boxes include beauty boxes such as Ipsy, PLAY! By SEPHORA, and Birchbox; clothing boxes such as Stitch Fix; wine subscriptions such as VINEBOX; and even subscription boxes that will deliver specialized treats for your pets, such as BarkBox and KitNipBox.
Why They Work
The popularity of subscription boxes has only risen in recent years, with hundreds of retailers successfully adding them to their business models. Boxes are convenient, easy to personalize or cancel, and usually fairly low-cost.
Retailers who add subscription boxes usually see an increase in customer loyalty, since boxes continue on a regular basis as long as the customer is signed up. Customers are also more likely to spread the word about unique, fun services like subscription boxes, which increases popularity and brand awareness.
What Retailers Should Focus On
The largest and most influential customers are now millennials. As millennials have a clearer set of eco-conscious and moral-driven consumer values than generation X and the boomer generation before them, retailers need to take certain things into consideration when putting together their subscription boxes. Eco-friendly packaging and locally-sourced items are bound to get the most positive feedback. However, since social media sharing is inevitable and instant in this day and age, attractive assembly is also key for brand recognition and a good amount of “shares,” “likes,” and “follows.”
How RetailApp Can Help
RetailApp is a user-friendly platform that is ready to help any business big or small move forward and be successful. Businesses that implement subscription boxes can find using RetailApp extremely helpful, as the platform shows Key Performance Indicators that can speak to the success of each product in boxes. The social tools RetailApp provides make it simple to communicate to and from the buying team in order to decide on what products to include, and to the marketing team to spread the word about the benefits of the company’s new subscription boxes. Try out RetailApp today and open up a revolutionary world of possibilities for the growth of your business!