Subscription and home delivery: two concepts in working order
3 July 2018
Updated: 10 July 2018
Subscription to a product and delivery are intimately linked. Indeed, all the interest of this formula resides in the delivery in itself: the product (or the group of products) and the formula are chosen once and for all and the merchant takes care of all the rest. He will receive his goods every time, at home, with confidence. Nevertheless, all subscription / delivery offers appearing on the market do not offer the same promise and meet the specific needs of the consumer.
Concept 1: Live a unique experience with a thematic box
When you think “subscription and delivery”, comes instinctively in mind the concept of box delivered each month at home. Thematic “Boxes” of all kinds: beauty (MylittleBox), wine (LePetitBallon), tea, jewelry… they are multiplying.
- Consumer’s benefit: Live an experience
These boxes are associated with pleasure, well-being and even culture. Their promise? Create the appointment and surprise the consumer with new products and new brands, or creators or producers to discover.
- Key to success: Preserve the wow effect!
The first months, it is easy to satisfy and surprise the consumer with some new nice finds. The thing becomes complicated, however, in the long run. How to make sure to renew enough to guarantee that a subscriber, for 2 years, does not get tired of the products offered and is always eager to discover his new box? The question of partnerships is therefore crucial: create a partnership with existing brands to offer exceptional products but also with new brands to position the box as a discovery tool for fans of a universe.
Great importance is also to be given to packaging that must be faultless. It is an integral part of the customer experience: colour, decoration, product description labels, quality, so that the box and its products arrive in perfect condition. These elements make it possible to write the moment of reception by the consumer for whom it is a small event eagerly awaited each month. This waiting effect can be reinforced by the few teasers shared on social networks and by the surprise effect by adapting the content of the box to popular events: Christmas, summer holidays…
Concept 2: Get rid of some everyday purchases
Another trend of subscription / delivery finding an increasing success is the delivery of consumer goods, such as pet food, diapers, contact lenses or water packs.
- Consumer’s benefit: Saving time and practicality
The era of time is to optimising his days between work, family, sports, and other hobbies. It is necessary to find a solution to get rid of some cumbersome tasks. These subscriptions respond to a specific need: to save time on repetitive purchases and whose shopping experience is of little interest. So, it is the practical aspect that is here at stake.
- Key to success: perfect replenishment and punctual delivery
If the goal is to save time, the consumer must be able to fully count on the brand: whatever happens, he will receive his weekly water pack or baby diapers. Out of stock and late delivery can not be accepted. Indeed, what would be the customer benefit if every two times he must go himself to the supermarket, carry 2 packs of water due to an incident with its delivery service. The ultimate goal for the brand would be to make forget this subscription to consumer: without even thinking about it, a new water pack appears at home on a regular basis.
The consumer must be able to keep the possibility to adjust his formula as he expects: the child grows up and uses less diapers, accommodating additional people and need to increase the amount of water delivered …
A third hybrid concept: the food basket
The subscription to the weekly food basket is the perfect mix between concepts 1 and 2: the end of the chore of shopping in a crowded supermarket to think about what product to choose and long live the discovery of good quality products, sometimes organic, and accompanied by recipes to prepare with family. Saving time, convenience, replenishment, respect of delivery dates but also surprise effect, originality and quality: all criteria must be at the appointment.
Finally, this craze for home delivery is part of a broader trend: the end of the industry and the advent of a service economy. Everything is service, even the products and the question of trust in the brand becomes very important. However, one of the main challenges facing all these merchants subscription / delivery in order to guarantee the viability of their model, lies in the question of cost. How to pass or not the cost of delivery on the price offered to the consumer? What threshold to reach to expect a profitability of its activity?