#MillenniumLive , Podcast , Retail
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.
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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!
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