Subscriptions are one of the many ways retailers adapted their business models to accommodate evolving shopping behaviors driven by the pandemic. Analysts predict that US eCommerce subscription sales will grow 18% in 2022. And a Kibo survey found that 36% of consumers already have a product subscription.
To help companies take advantage of the growing subscriptions market, we decided to launch Kibo Subscriptions Management. Kibo Subscriptions Management will help retailers drive sales and customer loyalty with ongoing, recurring orders.
Why Offer Subscriptions?
Sick of paying high prices for items they buy regularly, or forgetting to purchase them altogether, consumers are turning to subscriptions to fulfill their everyday buying needs. Whether it’s a monthly razor refill or a curated box of beauty products, subscriptions are a great way for retailers to delight loyal customers.
But consumers aren’t the only ones that benefit from subscriptions. As we head into an economic downturn, subscriptions allow retailers to gain a competitive advantage and automate repeat purchasing.
The top product categories that consumers subscribe to are health & wellness, food & beverage, and beauty & personal care. And these categories are typically recession resistant. By adding a subscription offering to your eCommerce site, you not only provide additional value to customers but also gain insights that can be used to build out customer segments, optimize the user experience, and develop new products.
Some additional business benefits include:
- Increases average order value and customer lifetime value
- Increases product discovery for new and existing customers
- Provides a consistent stream of revenue and helps forecast inventory needs
- Trial of new products or outreach to new customer segments
When asked in a survey why they decided to subscribe to a product, 59% of consumers said it’s for the convenience factor. With Kibo Subscriptions Management, savvy retailers can grow their product subscriptions by focusing on offering value, flexible and convenient self-management, and customer discounts and promotions.
What Can Retailers do with Kibo Subscriptions Management?
Kibo Subscriptions Management brings value to three distinct personas: Retailers, Shoppers, and Customer Service Representatives.
Retailers: Control your subscription strategy by naming products for subscriptions and customizing subscription prices, discounts, frequencies, and trials. For example, you can offer shoppers 10% off their first subscription offer and 15% off each recurring order.
Shoppers: Give your customers a personalized shopping experience by allowing them to self-manage their subscription orders, including pausing subscriptions, swapping products, skipping an order, and canceling.
A Kibo survey found that the number one reason consumers don’t have a product subscription is that they want to control how often they purchase a product. By leveraging Kibo Subscriptions Management, you can give customers complete flexibility over their subscription orders and help them feel confident in their purchases.
Customer Service Representatives: Empower your customer service representatives to help shoppers edit their subscription orders and minimize time to resolution. With Kibo Subscriptions Management, customer service representatives can create subscriptions, edit placed orders, and manage full or partial refunds.
Why Kibo Subscriptions Management?
Kibo Subscriptions Management is the perfect addition to increase revenue and drive customer loyalty. But why choose Kibo over other solutions?
- Kibo Subscriptions Management is fully integrated with Kibo checkout – no more pushing customers off-site to an entirely separate subscription checkout experience and risking losing conversions.
- If you have an existing subscriptions solution, you can easily migrate historical data and orders to Kibo Subscriptions Management without disrupting the customer experience.
- No need to worry about additional costs as your subscriber base grows – Kibo Subscriptions Management auto-scales.
- When coupled with Kibo Headless eCommerce and Kibo Order Management, you can control and fulfill all online orders in a single platform.
Ready to learn more about Kibo Subscriptions Management? Schedule a demo with a member of the Kibo team to see how the solution works and can fit into your customer experience.
Click Here to view the full results from Kibo’s State of Product Subscriptions 2022 survey.
Kibo’s State of Product Subscriptions 2022 Survey Results