Are Subscription Services The New Face Of Retail?

  • admin
  • By admin
  • in
  • on September 27, 2018

In this fast-paced world that we live in, it is no surprise that people want products delivered to them in an agile and effective way. Luckily, this can be accomplished by the emergence of subscription companies, that are growing at a rapid rate.

“In the month of April 2017, subscription company websites had about 37 million visitors. Since 2014, that number has grown by over 800%.” Forbes reports.

The subscription business has taken off in the retail industry, changing the way consumers receive goods and services. Forbes dedicated an article just for subscription businesses, and the insights found to prove just how much this industry is growing.

What Is A Subscription Business?

For starters, understanding what a subscription business is, is crucial to understanding why they are growing. In simplest terms, subscription businesses send consumers packages based off of items that have been picked specifically for that customer. The average subscription business delivers products once a month. Consumers are able to subscribe to this service and have a hands-on approach to what they receive.

This business has taken off in the last couple of years mainly because technology has grown so much, making it easier for companies to reach an audience and deliver products effectively.

There are many popular subscription services out there. You may be familiar with Blue Apron, which delivers ready to cook meals to customers. Dollar Shave Club is also a popular service that caters to men’s shaving needs, delivering shaving products to the doorsteps.

Subscription Services Are Growing

Forbes referred to as subscription businesses as being faster growing than most retailers, thanks to technology and mobile capabilities. Not only does technology help grow this business, but it proves what kind of customer base is out there, and what they are looking for.

Retailers can look to this kind of customer in order to adapt goods and services to meet their needs. This customer is one that is adaptable, up to date and looking for a personalized experience.

“It’s not enough anymore just to give consumers what they’re looking for if they know what they want they can get it with a click anytime. To get a consumer excited, you have to offer something they’re not expecting and subscriptions are an ideal instrument for surprise.”  Forbes reports.

In order to achieve the utmost level of personalization, companies can’t be afraid to ask their customers what they want. A subscription business is only as successful as how much they know about their customer, in order to cultivate products and services that will meet their needs.

If your services are out of date and not targeting the right customer, it will fall short. Retailers can rely on data and analytics in order to get to the hearts and desires of their customers. Following a subscription model can be beneficial. After all, customers can cancel a subscription as fast as they can sign up for one. This is a challenge that retailers face in the growing age of customer engagement.

The secret to combating this challenge is selling a product that people actually want. Look inward, do your research and you will find what you are looking for.

“Google search is the biggest source of customers for subscription companies and social media is second. Social media is a more important source of customers for subscription businesses than it is for other types of retailers.” Forbes reports.

So, are subscription businesses, in fact, the new face of retail? According to many experts, the answer is yes. This industry is growing at a rapid rate, as new industries are being tapped into, like the beauty and fashion industry. We are faced with a market that only has the potential to grow.

ABOUT TRANSFORMATIONAL CMO

Event Banner CMO8 - 300x300 (1)

This October, the 8th Transformational CMO Assembly in Denver is a unique event that challenges our attendees to learn how to anticipate what’s next for the highly complex marketing environment that has emerged throughout the year through a series of executive education roundtables, keynote presentations, collaborative think tanks, educational workshops, and networking sessions with our industry experts and advisory board over the course of 2 days.

Download your copy of the sponsorship prospectus here for more information>>

Spaces are reserved for the best in the business. If you’re a CMO looking to stay one step ahead of the digital world, reserve your seat today >

What makes our assembly so exclusive is our exclusive content. And what better way than getting exclusive content than by downloading our brochure created with you in mind?

Download your copy here to get a sneak peek into our assembly today >>

Leave a Reply
admin
PUBLISHED BY admin

Jenny Schecher is a Client Services Director & Social Media Manager at The Millennium Alliance. Jenny is an avid contributor to our blog, Digital Diary, as well as all social media platforms. When she is not writing about digital transformation and technology, she is working with her team to make visions come to life at our events. (and eating all of NYC's best food.) Follow her on Instagram: @jennyschecs or find her on LinkedIn!

View all posts by admin

Related Posts
Rhonda Vetere, Former CIO & CTO of Estée Lauder & Herbalife, Returns as Keynote Speaker for our Digital Enterprise CIO & Data Transformation Assembly!

CIO , Data

Rhonda Vetere, Former CIO & CTO of Estée Lauder & Herbalife, Returns as Keynote Speaker for our Digital Enterprise CIO & Data Transformation Assembly!
Olivia Troye, Former White House Homeland Security Advisor to VP Pence, Keynotes Our Transformational CISO Assembly!

CISO

Olivia Troye, Former White House Homeland Security Advisor to VP Pence, Keynotes Our Transformational CISO Assembly!
Intelligent Workforce Management: What HR Leaders Need to Know with Legion

HR

Intelligent Workforce Management: What HR Leaders Need to Know with Legion
Karen Daley, former President of the American Nurses Association, Keynotes Our Digital Healthcare & Patient Experience Transformation Assembly!

Healthcare

Karen Daley, former President of the American Nurses Association, Keynotes Our Digital Healthcare & Patient Experience Transformation Assembly!
Looking to
Sponsor?

Reach thousands of C-Level
Executives every month.

Next Request More Information
Become a Guest
Contributor

Do you have content that you feel will
resonate with our audience? We'd love to
welcome you as a guest contributor!

Next Contact Digital Diary
Lovin’ Digital
Diary?

Premium content to our readers
interested in all things business.

Next Subscribe Now
Check Us Out!

Millennium Membership offers Fortune 1000 C-Level executives, leading public sector/government officials, and thought leaders across a variety of disciplines unique and exclusive opportunities to meet their peers, understand industry developments, and receive introductions to new technology and service advancements to help grow their career and overall company value.

Next About Millenium Alliance
team
About Digital Diary
The go-to source for all things digital transformation.

Launched in 2017, Digital Diary was created to provide premium content to our members interested in executive education and business transformation. With C-Suite executive and top academic contributors, interviews with industry leaders, and digital transformation insights from technology experts, Digital Diary has all of the professional development tools you need to stay ahead of the curve.

Meaningful Opportunities
Leadership skills at every level

We are dedicated to distributing meaningful opportunities for our reader to increase their personal knowledge, simplify business initiatives, and to have the right information to build their capabilities and leadership skills at every level.

team
Millennium Alliance Membership

In the midst of disruption across all industries, our members are given the tools they need to digitally transform their organizations.

 
What does it mean to be a
Millennium Member?

Joining Mill All is an opportunity unlike any other to connect with the best professionals in your industry and be a part of a community to become the best leader you can be.

50+ Annual Exclusive Invite-Only Assemblies
$1 Billion+ In Business Deals Conducted Annually
47k+ Engaged Members
2k+ Executives From Fortune
500 Companies Attend Each Year
97% Of Members Are VP Level & Above
5k+ Annual 1:1 Networking Meetings

Interested in Learning More?

Reach out to us or
keep learning
arrow Read the Digital Diary
NextConnect with Us