Using Subscription Commerce to Retain High-Value Customers
Subscription commerce works equally well for B-to-C and B-to-B companies. A beauty supply retailer could send a customer the same shampoo every eight weeks, while an office supply retailer could regularly send toner ink and printer paper to a business owner.
Even retailers that don’t sell consumables can significantly boost sales using subscription commerce. Teavana, which operates 150 retail outlets and a website, uses subscription commerce to offer tea lovers special monthly "clubs." Customers can sign up for a club and get a new tea shipped to them each month, discovering new products they might not have otherwise tried. This same concept plays well for retailers of shoes, clothes, fashion jewelry, gourmet food and other discretionary purchases. Consumers may wish to become part of a member-only club where they receive more of a surprise and delight in limited-edition products before the general public.
- Companies:
- Amazon.com
- People:
- Teavana
Greg Alvo is the CEO and founder of Ordergroove, responsible for setting the overall strategic direction for the company and overseeing day-to-day operations. Greg founded Ordergroove from his apartment in 2010 with the vision of making consumers’ lives easier via innovative commerce experiences (before anyone knew what a subscription service was: “huh, like magazines?”). While in school and shortly thereafter, Greg held a variety of enterprise sales roles at Liquidation.com, an eCommerce startup that went public in 2006. Greg graduated from George Washington University, where he created his own Major with a degree in Entrepreneurship/Small Business Management. Prior to attending GWU, Greg founded Voteq, a computer hardware firm which he grew to over 100 clients nationwide. Originally from Miami, Florida, Greg now lives in Brooklyn with his much better half, Caroline, and four kids Adriana, Daniela, Andrew, Lila and Bleecker (dog). In any free time, Greg most enjoys reading, exercising and getting back on the tennis court.
