Today, subscription experiences are in high demand, with more than half (52 percent) of respondents in our recent survey noting they have between two to five products delivered via subscriptions. In addition, more than a quarter (27 percent) of consumers say convenience motivated their decision to subscribe.
Yet, while interested in convenience, consumers want to set their own definition of what convenience means to them. A flexible subscription experience where consumers can control all aspects of their orders can help improve acquisition and establish lifetime customer relationships. Based on our latest consumer data, there are four key ways brands with subscriptions can deliver this type of customizable convenience.
1. Provide bundling options.
Bundling, also known as a build-a-box experience, is when a brand offers a subscription that includes multiple products for a set price. With bundling, a subscriber can pick and choose exactly what they want to receive in every order. As a result, subscribers will find their subscription more useful and have fewer overstock concerns.
Bundling also offers a win-win scenario for merchants — especially promotion-sensitive brands. It’s common (and I highly recommend) for merchants to offer discounts to subscribers, but this can inadvertently devalue a brand’s product in the minds of some subscribers. However, bundling enables brands to discount a collection of products. This is a subtle but important distinction and will help protect the value of a brand's product.
2. Enable order skipping.
While often predictable, people aren’t always perfect. We’ve all experienced a week where we found we didn’t use a full bag of coffee or noticed the pantry overflowing with snacks. Giving subscribers the ability to pause or skip their orders lets them manage the experience on their terms and reduces cancelations due to overstock. In fact, Ordergroove’s internal data shows that subscribers last 135 percent longer when they have the ability to skip an order.
Locking customers into an experience where their only options are to cancel or end up with a surplus of items can cause a negative experience and impact brand image. Brands should do everything they can to avoid it.
3. Implement products swaps.
Flavor fatigue is the feeling of boredom consumers experience after having too much of the same product for an extended period of time. While its name might imply that flavor fatigue only affects edible products, it impacts all consumer items. For instance, a subscriber who has used the same shampoo for several months might want to try a new scent. If they can’t easily update their subscription order, the likelihood of them canceling increases significantly.
Brands that want to ensure their subscription experience is convenient must allow subscribers to swap products. Ordergroove data shows that subscribers last 71 percent longer when they can substitute a product.
4. Offer discounts for product add-ons.
Brands can also make their subscribers’ lives more convenient by giving them a discount on one-time purchases that they add to their subscription order. This encourages them to test products they wouldn’t otherwise purchase. Say a subscriber receives a monthly order of dog food that includes a 10 percent recurring discount. They can add dog treats to their order to learn if the product is right for their pet, without having to pay full price. It makes trying products less of a risk.
Put Consumers in Control to Foster Long-Term Relationships
The idea of subscriptions isn’t new. However, what is new is the requisite to optimize experiences for customers in ways that meet their individual needs. Bundling, order skipping, product swapping, and discounts for add-ons are just a few of the ways merchants can use subscription experiences to give customers more control. This level of convenience creates confidence and ultimately establishes lifetime relationships and fosters loyalty.
Casey Burt is strategic client director at Ordergroove, a subscription commerce platform.
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