Excerpts from an article by Klaudia Tirico on retailTouchPoints
Subscription retail first came on the scene as a disruptor to the industry in the early 2000s, and it continues to make waves as it grows. The sector began with digitally savvy startups popping up to offer consumers a monthly box of goods, usually curated based on a quick personality quiz. Today it has evolved to become almost table stakes for many different types of retail brands. In addition to the original disruptors that started the subscription scene, more traditional brands including Petco, Walmart and Gap are offering the services, alone or in partnerships, to provide consumers with a convenient way to discover and sample new products for a low price.
In return, the retailers get access to a treasure trove of customer data. Some long-standing subscription services, such as Stitch Fix, are applying artificial intelligence (AI) and machine learning to this basic data to help create new products and target specific subscribers.
So as more players join the subscription game, how do existing subscription companies remain relevant and top-of-mind for customers? Some brands, such as Loot Crate, are providing relevant content, in addition to boxes, to keep customers interested. Others, including Stitch Fix, are leveraging customer data to refresh offerings and strategies.
Read the full article on retailTouchPoints