Connecting with and engaging customers: It’s an ongoing struggle many CPGs face. The real problem, however, lies in the way consumer packaged goods companies think about their customers. Most actually think of their customers as the large and small retailers to which they distribute products, rather than the people buying and using those products. That traditional way of thinking — focusing on retailers over buyers — is hard to break.
This article was written by OceanX CEO and Founder Georg Richter and first published on Entrepreneur.com.
Subscriptions are still growing and innovating, with the subscription box industry projected to create $40 billion in revenue this year, according to Subscription Summit organizers.
OceanX CEO & Founder Georg Richter recent LinkedIn article explaining through the lens of a POPSUGAR email he received the importance of inventory management in the subscription world.
Excerpt "Today, I received an interesting email notification from POPSUGAR that my “June Must Have Box may be arriving at your doorstep a little later than usual.” The box is delayed, according to the email, because they are waiting for one item in the line-up that did not make it to their warehouse in time."
The New Membership Economy continues to innovate at a rapid and fun to be a part of pace. Current subscription leaders like Birchbox are opening brick and mortar stores, Le Tote just launched a new private label line with a key influencer, Gap launched a Baby Outfit box while other new brands are entering the space.
Experts often cite that there are three core elements of a successful subscription businesses- convenience, value and replenishment. We agree that these three are important and in some cases are the only elements you need for certain product categories, especially ones widely available via Amazon Subscribe and Save. However, in the New Membership Economy we argue that innovative brands and retailers should consider 12 key psychology elements of physical subscriptions when thinking about creating a true membership experience.
OceanX was proud to be a sponsor and participant at the Recurring Revenue Conference presented by Sutton Capital Partners this year. The event had a wide mix of quality people from all across the worlds of subscriptions. OceanX Founder and CEO, Georg Richter, helped kick off the event with a panel on how to scale a subscription business along with Bill Bradford from Beachbody. See the below video and we look forward to next year.
One of the biggest values provided by subscription is the delivery of daily wants or necessities to your doorstep. While people enjoy the convenience of receiving boxes regularly, brands and retailers that include delightful surprises in their boxes can build even stronger relationships with their customers.