Successful Custom Subscription Boxes In A Competitive Market
Consumers love custom subscription boxes when they are done right. The subscription box market blew up during the pandemic, growing 41 percent between 2019 and 2020 and followed by a 19 percent gain in 2021, according to eMarketer. This is great news for brand owners looking to enter the subscription box market.
What are Subscription Boxes?
If you aren’t familiar with subscription boxes, they consist of several products curated around a theme, such as self-care, holidays, a culture, wine, apparel, and pet supplies, delivered on a reoccurring basis to the consumer. The cost for a subscription box is typically lower than it would be if the products were purchased individually, drawing many consumers to subscription boxes. The consumer may customize the products or receive a surprise assortment for each delivery. The surprise element is the allure for some. It’s like getting a present every month from your favorite family member. Although, value is still important.
Increasing Customer Retention
The subscription box market is highly competitive in every category and has a high churn rate (10.54%). If consumers aren’t satisfied with the experience, they will cancel. With so many options available to consumers, providing the best possible value and experience is critical to prevent them from canceling prematurely.
Some things to consider providing include:
• Exciting merchandise
• Appropriate quality for the price point
• Special deals and seasonal options
• Ability to choose products or return/swap unwanted products
• Ability to temporarily pause a subscription or skip a delivery
• A cohesive experience from packaging to product
Using Custom Subscription Boxes to Excite Customers
To provide a cohesive experience, ensure the branding remains consistent from when the customer orders until they receive and open the subscription box. Customized packaging can help to elevate your brand and delight your customers. Creating a positive emotional connection to your brand can help brand retention and growth.
The box should be sized appropriately for the contents. Consumers have demonstrated their disappointment when products are overpackaged, and many brands have found themselves the target of internet memes and shaming sites. However, a balance must be struck because if consumers receive damaged products caused by under packaging, they will likely cancel the subscription.
The outside of the box matters too. Your customers will feel disappointed if the items in their subscription box arrive in a nondescript brown corrugated box.
The printing and graphics on the box are essential components for creating a memorable subscription box. The box should reflect your brand in color and style. Although your brand may not be as globally recognizable as the iconic blue Tiffany box, you want your repeat customers to know it when they see it. The sight of your box should evoke feelings of anticipation.
The printing method can impact the look and feel of the box. If you aren’t sure about the types of printing available and what is suitable for your custom subscription box, the experts at Tyoga Container can help you.
Customized Internal Packaging Matters Too
From the materials used to how the products are presented, the total packaging adds to the story you are telling your customers. A good story evokes an emotional response. For example, one study showed that branded tissue paper inside the box led to a more positive emotional experience, with 84 percent saying the branded tissue paper improved their purchase experience and 2 out of 3 saying they would be more likely to share it on social media. An eCommerce survey showed more than 23 percent of Millennials and Gen Z said branded, gift-like packaging would make them more likely to purchase from a brand again.
Internal packaging is also functional. The internal packaging materials will prevent products from moving around and becoming damaged. This is particularly important for fragile items. Corrugated gives you the flexibility to be creative with how products are presented and held into place within the box.
Successful Subscription Boxes Start With Tyoga Container
From the external box to internal components, we can work with you to create a subscription box that will delight your customers. Speak to one of your packaging specialists to get started.
