LSC Insights

On a normal day, morning traffic, office drama, and overtime would mark the recipe for a miserable day. But today you’re leaving work with a smile on your face. The delivery notification made it official; your subscription box is waiting for you at home.

Maybe you’re a fashionista and your Allure Beauty Box has arrived with a month’s worth of cosmetics and tutorials. Maybe you’re a geek and your Loot Crate arrived with memorabilia from top game or movie titles. Nevertheless, a box full of mystery sits before you begging to be torn open. It’s your monthly Christmas morning!

A subscription box is not your typical home delivery. It’s a collection of items hand-picked by your favorite brand specifically for you. Upon subscribing to a particular brand, consumers are often prompted to complete a survey to align their preferences with the merchandise they receive. The ultimate goal of subscription boxes is to establish a direct relationship between brands and their fans. Like any worthwhile relationship, this one is built upon trust and understanding.

Wouldn’t it be terribly annoying to have to re-introduce yourself to your friends every time you meet? We don’t often consider consumers to be ‘friends,’ but treating them as such is an effective marketing tactic. Data collection helps brands continuously tailor consumers’ experiences to their evolving tastes and preferences.

Once a positive reputation has been established around a subscription box, customer loyalty will eventually bloom into a brand culture. Social media is an invaluable tool for developing a rapport with subscribers; subscription box companies are noted as being nearly twice as reliant on social media than traditional retail outlets. Subscribers will be able to share their subscription box experiences with one another and develop communities around their favorite brands.

More people than ever before, especially millennials, are turning to subscription boxes for the thrill they provide. According to the latest data, the industry observed an 831% increase in internet traffic between 2014 and 2017, amounting to over 35 million website visits. For some companies the attention has turned serious profits. Dollar Shave Club, one of the top subscription services, was sold to Unilever in 2016 for a whopping $1 billion. The soaring popularity of subscription boxes in recent years is proving the ‘trend’ is a viable long-term business model.

LSC will be attending largest conference dedicated to the subscription box industry, SubSummit ‘18, in Denver, CO on May 30 – June 1, 2018 to showcase our capabilities and learn more from other industry leaders. We’ll be back after the event with a recap of the latest and greatest trends happening in the industry.

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