One of the greatest areas of opportunity in business today is for existing subscription box brands. Today, nearly one-third of all US consumers subscribe to subscription box services. On average, each of these consumers spend 57 dollars per month on these boxes.
Even if your subscription box service has an established audience, there are many ways to promote even further growth.
So, what’s the secret to long-lasting success and customer retention? To learn more about our top tips on growing your subscription box ecommerce, read on for our basic guide.
New Customer Acquisition
The truth is, most customers are not automatically attracted to subscription boxes. As you know, there is no magical energy that pulls them in. That’s why acquiring customers, and then keeping them, is such a difficult task.
Offering a free or highly-discounted trial period can facilitate a “nothing to lose” mindset for apprehensive consumers. However, it’s crucial not to overinvest in these areas. If you’ve already started planning your customer acquisition marketing strategy, be sure not to neglect your returning subscribers.
Focusing on the lifestyle of your target audience provides an exclusive offer they can’t resist. Catering to your audience’s everyday habits can help acquire more new customers to an already successful brand, but also keep them for the long haul.
Another tip is to prioritize word of mouth marketing. Influencer marketing is one of the most popular forms of marketing this year, and can be highly beneficial for growing your subscription box even further. If you’re in a unique niche, consider working with an influencer to reach even more of your viable target audience.
Finally, use email marketing to your advantage. Consider that many potential customers will browse your website and products seeking trust symbols. By using opt-in forms and email sign ups on your website, you can learn valuable information about these potential customers as well as speak to them directly.
Customer Experience
With a strong customer acquisition strategy under your belt, catering to a highly-personalized customer experience is another strong trend in the subscription box industry.
More than ever before, customers are searching for products, services, and media specifically tailored to their needs. This trend is especially true in 2022, as consumers continue to turn to ecommerce versus traditional in-person shopping experiences. In fact, 91 percent of customers are more likely to buy from brands that cater to their personalized preferences.
Allowing customers to curate their monthly box with preferences not only shows customers that you’re paying attention to their needs and wants, but it will also show that they can get something unique from your brand that they won’t find anywhere else.
You may also consider asking your existing customers for user-generated content. Simply ask them to snap a photo or short video of their box at home and products in-use. Then, share these photos on your social media, website, and email marketing campaigns.
This allows your customers to feel that they’re involved in an important relationship with your brand. It also allows other potential customers to see your products in action.
Churn Reduction
Studies show that across all industries and services, cancellation rates of subscription boxes are at nearly 40 percent. Most cancellations also happen within the first six months.
Are you experiencing higher churn rates than you’d like? And why are so many customers canceling their subscriptions?
One of the main reasons is that consumers are searching for an A to Z experience rather than a product. While flash sales and incentives can be great to attract new customers or increase sales for a short period of time, they likely won’t work to build long-term relationships and reduce churn.
Be sure that your subscription box continues to adapt over time and grow with your customers. Allow for continued opportunities for customization and curation, and welcome feedback along the way.
You might also offer specials for your existing customers or a loyalty reward program. Even simple items like hand-written thank you cards can go a long way with existing customers.
The key to reducing your churn rate is to focus on personalized experiences and tailored communication no matter how far along your business is.
Think Outside Of the Subscription Box: Growth for 2022 and Beyond
Ecommerce is an ever changing landscape of opportunities. Your subscription box service is no exception. That’s why it’s crucial to continuously develop your marketing strategy to grow with your customers and market competition.
Now that you know some of our top tips for subscription box success in 2022 and beyond, what are you waiting for?
