Dollar Shave Club. BarkBox. Hello Fresh. Ipsy. These are just a few of the subscription brands showing up on consumers’ doorsteps in exchange for a monthly or weekly fee.
The appeal of a subscription service is pretty straightforward: Customers can consistently receive reliable products from a brand they trust, without having to place an order, or physically leave their homes. There’s no reason why traditional brick-and-mortar retailers can’t take part in the ever-expanding subscription economy.
Subscription services can expand your customer base
Although most grocery shopping still takes place in-store, grocery subscription services are an attractive option for consumers who either don’t have the time to do their own shopping—or are unable to shop in person. Offering a subscription service will allow brick-and-mortar retailers to expand their customer base by delivering groceries to people who: 1) lack easy access to transportation, 2) are unable to travel due to illness or disabilities, or 3) don’t have time to shop, and want to receive groceries on a regular basis.
Plus, there’s a lot of flexibility in how grocers can construct their subscription services:
● Meal kits. Grocers already have the raw materials to construct meals at their disposal. Why not save customers time and money by assembling them into meal kits they can prepare themselves without having to subscribe to a third-party service like Blue Apron or Hello Fresh? Customers will also enjoy trying out new recipes while saving the time it takes to plan meals, make grocery lists, choose ingredients, buy them, and transport their items.
● Curated collections. Customers can choose assortments tailored to certain themes, such as specialty desserts, ingredients from other parts of the world, body or home care collections, etc.
● Easy access subscriptions. In exchange for a nominal monthly fee, retailers can offer free shipping, free delivery, and other perks. Walmart’s subscription service, Walmart Plus, offers these benefits, plus deep discounts on prescription drugs from their pharmacy, discounts on fuel at affiliated gas stations, and scan-and-go options enabling subscribers to bypass checkout lines.
A new opportunity for digital ad revenue
In addition to expanding your customer base, subscription services also provide an opportunity for retailers to tap into a new stream of incremental revenue.
For example, when subscribers log into a retailer’s digital platform to place a delivery order, they’ll choose items for delivery or shipping. The time consumers spend browsing are opportune moments to present them with ads based on past shopping behaviors. In particular, the ad can reach a brand’s likeliest shoppers—and is particularly valuable when powered by a retail media solution like Swiftly, which capitalizes on sophisticated AI capabilities to present shoppers with the right ads at the right time. Plus, the brands advertising on Swiftly-powered platforms benefit from Swiftly’s analytics, disclosing the exact ROI for each ad spend.
Looking for a way to expand your customer base, tap into a new revenue stream, and reinvent the grocery shopping experience? Get in touch with Swiftly today.