Subscription commerce works equally well for B-to-C and B-to-B companies. A beauty supply retailer could send a customer the same shampoo every eight weeks, while an office supply retailer could regularly send toner ink and printer paper to a business owner.
Even retailers that don’t sell consumables can significantly boost sales using subscription commerce. Teavana, which operates 150 retail outlets and a website, uses subscription commerce to offer tea lovers special monthly "clubs." Customers can sign up for a club and get a new tea shipped to them each month, discovering new products they might not have otherwise tried. This same concept plays well for retailers of shoes, clothes, fashion jewelry, gourmet food and other discretionary purchases. Consumers may wish to become part of a member-only club where they receive more of a surprise and delight in limited-edition products before the general public.
- Companies:
- Amazon.com
- People:
- Teavana
Greg Alvo is the CEO of Ordergroove, a company that helps brands and omnichannel retailers practice and achieve relationship commerce, shifting consumer interactions from one-and-done transactions to ongoing, highly profitable relationships.