The demand for subscription boxes is on the rise. For example, 54% of online shoppers subscribe to a subscription box service.
Subscription Box Statistics
The reason for the growing popularity among consumers seems obvious. Imagine ordering subscription boxes and have anything from meals to toiletries delivered regularly on their doorstep. A recent survey by Clutch reveals just how important this trend is.
The survey found the subscription box industry appeals to consumers’ demands for convenient and novel experiences.
The findings of Clutch’s study highlight the competitive and profitable rewards of offering customers a subscription service. And as a result, reveals its benefit to small business owners.
What Small Business Owners Should Know
Small businesses should also be aware of what the most popular categories of subscription box services are. So they can optimize the impact of their subscription box services’ campaigns.
According to the management consulting company McKinsey & Company, the most popular category of subscription boxes is curation. It refers to a service that sends collections of new products for customers to sample and use.
The second most popular category of subscription box service is replenishment. This type of service sends consistent replacements of the same items or types of products.
Meanwhile, McKinsey & Company found that 13% of consumers favored “access” subscription box services. They allow members to access perks and discounts on products.
How to Choose a Subscription Box for Your Business
Think about the items you sell or the services you could provide. Offer your customers a subscription box service that allows them to sample new products, provides them with a consistent replacement of items, or enables customers to access discounts and perks. This could make shrewd business sense, helping you maintain customer loyalty.
One example of an industry in which subscription boxes work particularly well is food. As a result, small businesses operating in the food industry should consider providing customers with subscription box services. For example, you could deliver essential ingredients to their door. So this is a great way to sell more products to customers and sustain brand loyalty.
Such a service is great for consumers as it provides them with cost-saving benefits, as they don’t have to fork out extra dollars on ingredients they don’t need.
Paul Moyer, author of savingFreak.com, purchases groceries from HelloFresh’s subscription box service. In the Clutch press release on the survey, Moyer explains:
“We really want to expose our kids to different types of food, but buying all the ingredients can get very expensive. By having the meal kit delivered, we save the cost of buying an entire jar of spice we will only use for one meal.”
Clutch’s research confirms that subscription boxes play into the basic elements of human psychology, namely the desire for services that are both convenient and novel.
What benefits emerge from offering a subscription box service? Small business owners can appeal to contemporary consumer demands for convenient, novel, repetitive and efficient services. And they can try new products and never be left short of the items they need.
It works because it is a no brainer. It gets sent to you automatically. I am interested on how well it is selling as a business model.