Over the past few years, subscription boxes have increased in popularity. From beauty and hygiene products to food and gin boxes; there are subscriptions for almost everything at the touch of a buy now button. It is a purchase model that consumers are comfortable with too, in fact, 69% of households now subscribe to at least one or more services such as Netflix (source: Deloitte). Amazingly, coffee subscriptions were reportedly one of the most researched Christmas gifts of 2020, with options including a regular supply from your daily coffee brand or a discovery deal to broaden your coffee horizons.
In previous years, loyalty cards were the way to secure repeat customers, but it seems that subscription services are coming for that crown. For businesses recovering from the effects of Covid-19, the opportunity here is giving customers a reason to return to buy from you again and again.
According to Forbes, businesses are competing for customer trust now more than ever, and there is one sure-fire way of achieving it. “You earn customer trust by repeat good behaviour and providing value to customers they can’t get anywhere else. Rather than create new customers right now, you can work on maintaining your relationships with your past customers. Today companies can do this by knowing their customers and finding ways to make their lives easier and better.”
Subscription services that are flexible, reliably good, and consistently add value go a long way towards achieving this, and they do not necessarily have to involve delivering to a customer’s home. One such scheme, created by the high street chain Pret-A-Manger, currently provides customers with up to 5 drinks per day, prepared freshly instore, for £20 a month, with the first month free. It is a compelling reason to buy, providing a whopping saving for any avid coffee drinker as well as a compelling reason to return to store multiple times a day.
Delivering a coffee subscription service.
Clearly, a brand the size of Pret-A-Manger benefits from huge economies of scale.
The business opportunity, value of customer loyalty and ability to deliver, are the key things to consider.
We know that over 62% of Gen Z (born 1997 onwards) are highly influenced by loyalty programs, with that number set to rise steadily (source: Bonds).
Providing a speedy, reliable subscription service, done well, could indeed significantly boost your brand’s profile, business insights and revenue.
Offering weekly, monthly, or bi-annual options, with variable offers, adds customer value which you can control to your advantage. You might consider canvassing your new loyal audience on product feedback, needs and wants through social media. It also gives you the opportunity to reach new audiences through gift subscription or personal recommendation – the most powerful, free marketing tool there is.
Offering a coffee subscription service is certainly not to be entered into without a plan to ensure that your promises will always be delivered. What form might it take, what could you offer your customers that will work for both of you, whether that is now or in 6 months’ time, and what are your ultimate business objectives?
If you would like to talk to us about facilitating your coffee subscription ideas, please contact our experienced team.