“For retailers, it’s a great trade to sacrifice some margin to gain the retention of a subscription from a shopper,” said Reilly Newman, founder and brand strategist at Motif Brands, a brand transformation company in Paso Robles, Calif.
“This helps create recurring revenue and empowers the brand to look beyond just transactions, but the relationships they have with their consumers,” Newman told the E-Commerce Times.
“Successful subscription brands do this very nicely, as the transaction is simple and ongoing payment for the continued relationship where the retailer is able to add more value and focus on the lifetime value of the customer,” he added.”
“In the future, brands need to see beyond subscriptions as just a recurring purchase and as more of a membership, Newman advised. “That takes the brand back to not focusing on transactions but on the lifetime value of the shopper,” he said.
“The brand must continue to increase the value they provide to retain and grow the relationship,” he added. “All in all, it creates a very symbiotic relationship that benefits both the shopper and the brand.”
