Launching A Winning Subscription Brand. The Subscription industry has seen an incredible surge in recent years. While the popularity of this growing model largely stems from a consumer desire for convenience, it doesn’t mean customers want an impersonal, automated experience. As the ecommerce landscape becomes more competitive, winning brands must find ways to go the extra mile and create meaningful long-term relationships with customers to grow subscriber retention.
During a recent Crowdcast conversation with Chris George, Co-Founder and Chairman of the Subscription Trade Association (SUBTA) — and founder of Gentelman’s Box — and Jay Myers, Co-Founder and VP of Growth at Bold, outlined ways to position a subscription brand to provide ease and convenience in exchange for reliable revenue streams. Here are four learnings to keep front-of-mind when launching the next winning subscription brand.
1. The subscription industry is growing…fast!
Subscriptions aren’t a new business model. Well before the rise of ecommerce, consumers subscribed to magazines, book clubs, and even the now oh-so-retro compact discs. Fast forward to 2011 and the budding subscription box industry was valued at $56 million. By 2016, it had reached $2.6 billion — and over $10 billion by 2019.
There are many factors contributing to this growth, but certainly a significant part of the story involves a shift in consumer perception towards experience over ownership, particularly among gen-z and millennial consumers.
One study shows millennials would rather travel the world than own property.
This new consumer mindset is driving the subscription industry to unforeseen heights. It’s not just Amazon Prime and Netlfix. People are subscribing to everything imaginable: coffee, beauty products, CBD, even ice cream!
George and Myers agreed there’s a lot more to success in subscriptions than the product itself. But how can brands identify and lean into that added value? Which brings us to our next takeaway.
2. Subscriptions are a healthy source of recurring revenue
Earlier this year, Bold interviewed 800 of the 20,000 brands using Bold Subscriptions to capture trends and data that are drivers of success . . .