How Subscriptions are Transforming Customer Retention in Retail and Ecommerce
In today's competitive retail landscape, customer retention is more crucial than ever. One strategy that is continuing to gain traction is the implementation of subscription models. From beauty boxes to monthly coffee deliveries, subscriptions are not just a trend; they're a powerful tool for building customer loyalty. One of my favorite subscriptions has to be one that my little sister subscribes to…it’s a tortilla subscription. Each month, she gets a box of fresh, home-made, tortillas delivered to her front door. The 21st century is amazing.
So, how can subscriptions increase customer loyalty?
Here's 3 unique ways that subscriptions can help your business and how you can use them in your own store:
1. Personalized Shopping Experiences
Subscriptions allow you to offer highly personalized experiences. By understanding individual preferences, you can curate products that resonate with their customers. This personal touch can lead to a higher customer retention rate according to McKinsey & Company.
Example: CrateJoy
This website has compiled a long list of unique and creative subscription boxes. There is essentially a box for every need and personality. Take a look! It might give you some ideas that you can use in your own store to create personalized customer experiences.
2. Convenience and Consistency
Customers love convenience, and subscriptions deliver just that. Automatic replenishments and predictable costs make shopping seamless and enjoyable. Studies have shown that convenience can increase retention rates and reduce customer churn.
Example: Harry's Razors
The ease of ordering something as mundane as razors created an entire business. Harry’s Razors was started by two friends that simply wanted to provide people with quality razors at a fair price. Then, they gave people a small discount to subscribe. Now, millions of people around the world no longer have to remember to buy razors at the store, they get them delivered straight to their door.
3. Building Community in Ecommerce
You can use subscriptions to foster a sense of community. Exclusive content, tutorials, or classes can create a more engaging experience.
Example: Stride Retail's subscriptions coupled with eLearning
Stride offers a unique platform where you can create online courses to sell or distribute freely. You can also limit access to classes to certain customers. This means that you can increase the value of your subscription by offering courses that are only available to customers that bought a specific subscription or product.
Offering exclusive perks to subscribers can make them feel valued and more likely to stay with the brand.
Conclusion
Subscriptions are and will continue to be a great tool you can use to engage with your customers. By offering personalized experiences, convenience, community engagement, and exclusive benefits, subscriptions are becoming a vital tool for customer retention in the retail and ecommerce world.
With innovative solutions like Stride Retail's Subscription module, businesses have the opportunity to leverage this powerful strategy to foster long-term loyalty and stay ahead in the competitive market.