2016-12-15 00:00:00 Growing a Business English Take the plunge and launch a subscription box while the trend is still popular. The benefits include built-in product promotion and... https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/03/chocolatier-fills-a-subscription-box.jpg https://quickbooks.intuit.com/ca/resources/growing-business/why-it-is-time-to-try-out-the-subscription-box-approach/ Why It Is Time to Try Out the Subscription Box Approach

Why It Is Time to Try Out the Subscription Box Approach

2 min read

Capitalizing on trends lets you capture more customers and give them what they want while increasing your revenue; it is a win-win. Subscription boxes are trendier than ever, with boxes such as Munch Better, for healthy organic snacks; BarkBox, for pet supplies; and Loot Crate, for nerd memorabilia making an appearance on the Canadian market. Consumers demand subscription boxes in a variety of niches, and now is the time to carve out your own corner of the market. The benefits are substantial, including built-in product promotion, existing demand, brand loyalty, and long-lived customer relationships.

Product Promotion

Some subscription boxes are curated, such as BarkBox, which features products made by other brands and manufacturers. However, proprietary product boxes are growing in popularity, where the company creates and distributes its own product via subscription service. Featuring a new proprietary product in a subscription box is a unique promotional tactic. Better yet, this tactic performs triple-duty by promoting your brand, the product, and the subscription box.

Existing Demand

Customers demand convenience and targeted products that meet their needs. Subscription boxes provide both, by bringing the perfect mix of products directly to your customer’s doorstep. Including a customer questionnaire at the beginning of the signup process helps your company customize each box to your customer’s needs. For instance, Graze asks the customer questions about flavor preferences, dietary restrictions, and lifestyle to curate the perfect snack box every time.

The demand is strong enough with artisan or commodity subscriptions such as Wine Collective or Top Box Foods. Personal hygiene or necessity boxes such as Bath Time Box or ElleBox boast even higher demand because these are items that your subscribers use on a daily basis as part of a routine. The prospect of staying home and having a box of chocolates arrive is irresistible to your customer.

Brand Loyalty

Customers who subscribe to a box service tend to be loyal to that brand, especially if they’re a repeat subscriber and not a one-off trial customer. A loyal customer base means a built-in audience for your brand, which is valuable the next time you launch a new product or a new line of subscription boxes.

Your brand isn’t limited to a subscription box. Brands such as Graze and Dollar Shave Club offer retail product lines as an offshoot of their subscription boxes, marketed directly at the people who subscribe and love their boxes. Launching a new retail product line is less risky when you already have an audience lining up to buy it.

Lasting Relationships

Most retailers spend a significant amount of budget on customer acquisition costs. With a subscription box, the goal is to have customers subscribe on a monthly or quarterly basis. Automatic renewals make it simple for customers to keep subscribing without having to take action to purchase their box every month. This minimizes additional spending on customer acquisition and maintains the customer relationship effortlessly.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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