3 Tips for Running a Successful Subscription Box ServiceMay 1, 2019
It’s been almost 10 years since subscription box services like Birchbox and Dollar Shave Club hit the market and changed the way we shop. Now, you can pretty much get a box delivered to your door every month for whatever whim you have: beauty, gaming, fitness, pets, and more.
In fact, there are over 5 million subscription box shoppers in the U.S. alone, and the market is still growing. And it’s not just startups – established brands are jumping into the fray, including Sephora (with Play!) and Walmart (with Beauty Box).
With more than 600 retailers offering subscription boxes, how can you make yours stand out from the rest? Whether you’re starting a new subscription box service or trying to minimize churn rates for an existing one, here are some tips to help you succeed:
Think inside your curated box
Of course it’s all about the box, but we don’t just mean the random items inside of it. One thing box recipients appreciate most is the personalization, or the feeling that their box was uniquely curated just for them. Do the research and captivate your customers with your customization.
And don’t just consider demographics like age and location. In your personalization questionnaire, find out what your customers’ biggest challenges are, and what their level of expertise is with your products. This will help you deliver a more tailored experience, which is critical for any subscription box provider.
The better you can predict what your subscribers will like, the more likely they are to keep their subscription going.
Don’t get boxed-in
It’s OK to break some of the rules, some of the time – especially when it comes to subscription box services. For example, is it written in stone that you have to ship monthly? (Hint: it’s not.) Maybe your box is more of a quarterly thing. Or maybe your box could be part of a loyalty program for a legacy retailer.
Another thing to consider is letting subscribers choose their level of service by offering different subscription tiers. A customer reconsidering a $21 monthly subscription might be OK spending $10 on a smaller one.
Don’t limit your service by what everyone else is doing.
Capture that unboxing feeling
You know that rush recipients get when they open their curated box of goodies, eager to discover what’s inside? Think about ways to prolong that feeling until the next delivery. The last thing you want is your customer spending the next four weeks contemplating the service.
Make sure to engage your subscribers all month long. Here are some suggestions to keep the momentum going:
- Encourage subscribers to post unboxing videos or better yet, Facebook Live them. Engage with your subscribers on social media by liking or sharing their posts and reactions. And don’t stop there. Encourage subscribers to post reviews for the individual products inside their boxes as well.
- Create a loyalty program that allows subscribers to earn points they can redeem for more products. Points, for example, could be earned for referrals, product reviews, videos and social media shares.
- Build anticipation by adding teasers about next month’s loot to this month’s box, posting sneak peeks to your social media accounts, and emailing safe “spoilers” to your subscribers.
Bottom line: don’t let your subscribers get bored. If they do, it’s on you.
One tip that can’t go unmentioned: fulfillment is key to the success of your subscription box business. Whatever kind of unboxing experience you want to create, our custom kitting services team can make it happen. Learn more about our services.