Zabar's Secret to Success? Bagels, Babka and Z-Peat

Zabar’s, the world-renowned New York-based gourmet specialty food retailer, has replaced its homegrown subscription e-commerce program with a new autoship program called Z-Peat, powered by technology from OrderGroove.

Z-Peat offers customers the ability to subscribe to their favorite and/or frequently purchased Zabar’s items, everything from coffee and teas to babka, bagels and rugelach. Products are automatically shipped to customers who register online at zabars.com for the replenishment program.

"Many of our customers want to receive their favorite Zabar's products, like coffee and bagels, every few weeks," said Larry Zilko, director of IT for Zabars.com, in an OrderGroove press release. "Having to order online for each delivery is an inconvenience. While we attempted to build our own replenishment system previously, OrderGroove brought the team, insight and technology to ensure the best solution for our business and our customers."

OrderGroove's RetentionEngine Platform is integrated with Zabars.com. The platform enables shoppers to both have access to a convenient replenishment service as well as receive clear options for changing shipment schedules — e.g., accelerating orders, skipping orders or opting out of a subscription. Members of the Z-Peat autoship program also receive subscription email notifications for key events such as subscriptions started, order reminders, subscriptions canceled, items added to upcoming shipments and more.

Each subscription order also includes samples of new products and flavors, helping Zabar's customers discover products they may have been unaware of previously. This strategy has helped to drive customer retention and recurring sales for the retailer. What's more, the Z-Peat program allows Zabar's to better understand its subscriber base's preferences, as well as the impact subscriptions have on its business and operations through real-time analytics, reports and customer service tools, the OrderGroove release said.

Zabar's subscription offers are routinely tested and optimized with OrderGroove's team, whose analysis helps drives response and retention to the program.

Since implementing the autoship program in Dec. 2012, Zabar's has seen a significant increase in new subscriptions, according to Zilko. What's more, a larger percentage of Zabars.com customers are ordering more. "Currently, Z-Peat buyers are purchasing from our site eight times per year, compared to non-Z-Peat buyers who purchase from our site about one-and-a-half times per year," Zilko says.

To promote the Z-Peat program, Zabar's features it prominently on its website and also spreads the word about it via social media, email marketing to its customers and on its blog.