A subscription box is a package of products sent directly to a customer repeatedly and periodically. Subscription box is a marketing strategy and a method of products distribution to customers. The Subscription market has seen expeditious growth over the last few years.The subscription box industry stormed onto the scene a number of years ago. There are now subscription box services for almost everything imaginable, with new services starting every day. New companies are building successful and profitable businesses selling all manner of goods and subscriptions.
While online shopping has made our lives so much easier, it also has its problems. For instance, we don’t get to sample new products to see how they feel or taste.In 2010, Birchbox founders had a simple business idea to solve this situation. They devised a monthly service that delivers a box of carefully curated samples to women’s doorsteps.It soon became clear that Birchbox’s success was not just about giving women the opportunity to try new products at home. Birch box was selling an experience. Women loved receiving a package on their doorstep and not knowing exactly what was inside. It helped that the boxes were beautifully packaged, so women felt they were receiving a gift in the mail. This business is about the art of giving to yourself.
Platform for Business Growth
Cratejoy is a platform much like Squarespace that allows entrepreneurs to create subscription businesses from scratch. Hundreds of people generate a revenue stream for themselves by gathering a small group of loyal subscribers and delivering them products every month. Often, these small business owners have relatively modest financial goals. One entrepreneur on Cratejoy sells granola for $20 to 50 subscribers, which allows her to pay her rent, her car payment, and her student loans. It allows people who could not otherwise run a business the opportunity to do so. This platform gave boost to subscription box business and its progressing with time.
Advantages of Subscription Boxes
Customers often receive discounts on products by buying them through subscription boxes. Customers feel contented when the purchasing process requires less effort.Subscription boxes can also be a fun experience for customers. Customers enjoy the surprise of seeing what is inside, and they discover products they may not have known about or tried otherwise. This allows customers to try new products and brands without any risk. Convenience subscription boxes provide customers with products they are already familiar with, automatically through repeated payment processing. This allows customers to have more free time, because customers no longer need to manage the time to travel to a physical store to make their purchases.
This is the year of customer success. There is a continuous increase in the crossover of growth hacking and customer success. Both share goals of increasing customer lifetime value, reducing churn, and increasing user engagement. Subscription box business is growing day by day. Due to this rapid growth Executive teams include a Director of Customer Success, and the position is of equal importance to the Director of Marketing and Director of Sales.
Marketing and ad agencies continue to shift from the traditional hourly or project-based billing to subscription business models.At this point it seems like there is a subscription box for anything and everything, from the ever popular cosmetics samplers to the obscure dirt of the monthclub. The saturation point is near.The products are beautifully packaged, work well, have good quality and are non-toxic. Basically the product equivalent of selling parents peace of mind.
Many billion-dollar consumer products companies have direct access to millions of customers through email and social media, globally. However, they have yet to capitalize on monthly subscriptions to increase margins and expand their share of household, thereby owning the relationship with their customer directly. All apps and SaaS companies are growing which help consumers connect a myriad of daily activities to the Internet, not just those that are health related. Everything is connected to the internet & SaaS is everywhere now.
There are many trends of subscription boxes like Sous Kitchen, Stitch Fix, Birch box and UrthBox. Subscription box service is becoming one of the fastest growing trends in the world. From cosmetics to fashion to food, the last few years have featured a lot of subscription box companies, from winners like Birch box and Blue Apron to losers like Boxy and Walmart’s Goodies. The subscription box concept is pretty simple, attractive, affordable and requires less effort.