• How Retailers Can Add Subscription Services for Customer Loyalty

How Retailers Can Add Subscription Services for Customer Loyalty

In an ecosystem of multiplying methods for shoppers to research, purchase and even waffle, retailers and brands are investigating new channels of recurring revenue. Potentially feeding the beast — or in this case, demanding consumer — subscription services have abounded. With the news of Unilever’s relatively recent acquisition of Dollar Shave Club, a box-based monthly subscription that provides its members new razors and shaving accessories, it’s clear that this path is one worth considering. Dan Burkhart, chief executive officer of Recurly, a subscription safety platform that specializes in secure subscription management platforms, discussed trends in the sector in addition to maximizing the variety of consumer data that subscriptions provide. WWD: What are common challenges retailers are encountering when expanding into subscription services? Dan Burkhart: Retailers in general have added challenges of shipping physical goods, shipping costs and deliverability. There’s not only interest and requirement of acquiring customers, but they have to look at profitability and how long they can retain customers over time. Retailers need to consider lifetime value, how much does it cost the company to service the customer — it’s not just shipping and handling, but also returns. Looking into the subscription category, retailers need to try to understand these variables, price

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