What is going on in the Subscription Box World?
If you were to hop online and search subscription boxes, there are thousands of options such as fashion, food, lifestyle and even subscription boxes for your dogs. In this post we would like to cover two topics, first subscription companies and fulfillment second, tips for subscription business.
Recently Snapfulfil and SUBTA (Subscription Trade Association) did a first-ever State of Subscription Commerce report to gather subscription box statistics and this is what they found: “Subcom is young and hungry – 47 percent of today’s subcom offerings launched in the last 12 months. However, they might not be ready for the demands of exponential growth…Most of today’s subcom offerings are still finding their feet. Sixty-six percent of providers have 1,000 or fewer monthly subscribers, while only 16 percent have 11,000 or more monthly subscribers.” It is an amazing business to get into if you can manage the growth and find the strategies to these challenges. Where can we help? Fulfilment. In the Snapfulfil article it says, “As subcom providers consider solutions to their fulfillment woes, some are turning to outside help. Twenty-five percent of subcom providers outsource fulfillment to a Third-Party Logistics (3PL) provider, citing greater efficiency (75 percent), lower cost (60 percent) and better performance (40 percent) as driving factors. Seventy-five percent of subcom providers already with a 3PL plan to stay, and of the 25 percent considering a move back to in-house fulfillment, cost (40 percent) and greater control (40 percent) ranked among the top reasons for the switch.” If you have any questions or would like to get in contact with someone who can help please contact us on our website a firstmile.com and at IFS360.
On the Subscription Trade Association website there is an article which states five customer experience tips for subscription business (and everyone else) these tips include;
- Collect Information
- Use Foresight
- Ask Questions
- Respond Faster
- Reward Loyalty
It is important to follow these tips if you are in the subscription world or thinking about starting a subscription service, because like it says, “Subscription businesses are posed with a unique challenge. Because their customers don’t actively interact with the brand on a regular basis unless there’s an issue, they need to work extra hard to stay connected and grow their loyalty and Lifetime Value.” These steps are simple and easy to implement in your business, check out the article for the details. As a customer it is also beneficial to be aware of what your business is/can do for you. Stay in touch with them to know what rewards they may have for you too. Keep Calm and Carry On with your subscription boxes!