The concept of online shopping was not much prevalent a decade ago. The rise of the internet and social media has changed the way people shop. No matter what product you want, you can buy it online. Many brands accept orders online and dispatch products based on those orders.
If you are an online business, you have to keep in mind that your inability to meet your customers makes it even more necessary to get creative with the brand-building process.
The subscription box industry
The concept of subscription boxes was nonexistent until five years ago. However, with the market growing up to 890% in 2014, large and small businesses had to use creative methods to address their consumers’ requirements. One of those creative methods is selling subscription boxes.
In 2018, there were around 3,500 subscription box services operating in the US. The growing number of subscription services led to the introduction of the new term “subscription economy”. The number of these services continues to grow with the growth of digital buyers.
Why do customers subscribe?
The answer to 'why customers subscribe' lies in the types of subscription services. Three types of services are curation, replenishment, and access.
Curation is the most popular subscription service, with 55% of subscription box customers choosing this option. With the help of this option, customers get new products that match their preferences. Products range from clothing to cosmetics to beauty items.
Replenishment services comprise 32% of the e-commerce subscription market. This area deals with the same monthly items.
Subscribers of Access-based subscription services make 13% of the respective market. Those subscribers pay a monthly fee to get member-only perks, particularly in the apparel and food categories.
According to some reports, 60% of subscribers are women. However, men usually acquire more multiple subscriptions at a time.
Why do customers might lose interest?
Subscribers may choose to cancel their subscription services for several reasons. Some of those reasons are the following.
- They do not consider the box as something essential.
- They do not get what they are expecting.
- The box is usually overpriced.
Some reports suggest that customers are not too concerned about the price. Instead, they expect a better experience every time they get a box.
What do customers look for?
In this case, it is not just about what is inside the box. According to most brands and marketers, the overall experience matters as much as the contents inside the box. The purpose is to keep the customers engaged.
According to a market research company Global Web Index, the number of conscious consumers has risen significantly. 61% of those consumers said that they were more than willing to pay for a service that promises the environmental benefit with its product packaging.
Paying attention to the packaging
The packaging holds as much value as the product inside it. That is especially true for e-commerce subscription boxes. Your customers want to be valued, and there is no better way to ensure it than customizing your product packaging. It also includes assuring your customers that your product packaging is not detrimental to the environment.
No comments:
Post a Comment