Customer Retention: LUSH Cosmetics Launches Subscription Commerce Program to Generate Repeat Purchases

Subscription commerce — a business model where customers pay a subscription fee and in return receive a product delivered to them on a recurring basis — is a growing trend in the retail industry. Startups like Birchbox and Dollar Shave Club are prime examples of companies that are succeeding with a subscription commerce-based approach.

LUSH Cosmetics is the latest company to try to cash in on the subscription commerce phenomenon. The retailer of handmade skin care, hair care, and bath and body products launched its subscription commerce program in August. LUSH is using OrderGroove's Subscription Retail Platform to manage the program.

"To launch a service that provides such convenience to our customers has been a real success for us," said Mark Parrott, e-commerce manager of LUSH Cosmetics, North America, in an OrderGroove press release. "It's important for us to get the freshest product into the hands of our customers as conveniently as possible. This initiative wouldn't have been possible without the OrderGroove team and its technology. They have taken a very complex service offering and made it simple."

LUSH's product offering lends itself well to a subscription commerce program. In fact, this is true for most retailers in the health and beauty vertical. For example, customers that find a skin care or hair care product they like become loyal to it. The ability to have that product delivered to them at their home at the frequency of their choice makes their lives easier. In addition, the OrderGroove platform makes it simple for customers to add one-time purchases to upcoming subscription orders. LUSH's customers can also update, cancel or reactivate their subscription at any time.

While LUSH's subscription commerce program is still in its infancy, the retailer expects to see an increase in customer lifetime value as it matures.