The Rise of Subscription Retailing
It has occurred to me more than once that many of the new generation of marketeers have a few screws loose, and that has given rise to a whole generation of gonzo advertising that either works spectacularly, or doesn’t. This isn’t exactly new: I remember laughing at the Budweiser talking frogs (or better yet! Louie the Lizard) in the late’90’s, as well as being put off by the blatant trashiness of GoDaddy’s SuperBowl ads 10 years later. But did the ads work? I still don’t like Budweiser beer and still am a GoDaddy customer, so there ya go.
But there’s a whole new generation of marketing now for a new generation of retailer, as exemplified by The Dollar Shave Club ( “DSC “). Perhaps like me, you got a big laugh out of the first Dollar Shave Club viral ad in 2012. And aside from the laughs, it turns out that DSC solves a real problem for me. I’ve been using twin blade razors since they came out (I think in the ‚’80’s!), and have resisted every attempt by Gillette to force me to buy their three-four-or-five blades, pivot-headed, Sensor/Prologue/Fusion/Mach3 (each with their proprietary handles), etc. etc. As a matter of fact, every time I go to CVS and have to find someone on the sales floor to unlock the security display, so that I get the privilege of paying $18 for a 10-pack of good ol’ Atras, I turn several shades less than happy.
DSC has fixed all that. I just joined the club and now I get my monthly razor replenishment order automatically for a few dollars. Problem solved. And DSC makes it fun. For example, in the ultra-low-cost plain brown envelope that I got this month’s razor supply in, I also got this (and not much more):
Having managed an IT HelpDesk function, I feel like I know that guy!
Now DSC is expanding their categories, advertising “One Wipe Charlies ” (I’ll leave it to your imagination…).
Serious Business
All gonzo advertising aside, the notion of subscription clubs for consumer products is getting pretty big. Most people know about entertainment subscription services, such as Netflix, but subscription retail clubs have gone beyond simply renting this weekend’s entertainment. Generally, the services available either offer “curated ” assortments or a targeted assortment of items that tend to be “replenishment ” oriented. Such names as ShoeDazzle, Birchbox, Carmine, and The Trunk Club surprise the shopper with new selections every month, while companies such as the aforementioned Dollar Shaving Club focus on a very narrow set of solutions that fit a particular need. Hoseanna offers replenishment for (you guessed it) women’s hosiery. And MyDogBowl will replenish your pet food pantry.
More established companies are also in the subscription game. For example, Peets Coffee offers to replenish your chosen bean via a “straight from our roaster to your front door ” service with a percent-off incentive with each order. Not to be outdone, competitor Starbucks offers something similar (although inexplicably, the company doesn’t make it easy for a consumer to manage a subscription account via its mobile app). But pureplay subscription retailer Craft Coffee will find something new and special for you to try every month.
Should Subscriptions Be Part of an Omni-Channel Brand Experience?
One could conjecture that the uprising of subscription retailers is the result of Amazon. In fact, Amazon Prime makes it possible for consumers to receive replenishment items too. But this is where the gonzo advertising becomes important. There’s a big part of engaging with this new type of retailer that is just fun. In a sense, the consumer is supporting the marketing effort by buying the product. The question is, can subscription retailers keep it up – or when does the joke get old? Clearly DSC is already thinking about that.
A bigger question might be, is there a subscription play for established multi-channel retailers? For example, could a company like Nordstrom (which already not only has great stores, but a fine direct-to-consumer offering and a catalog business) get into a subscription model? I took a look at their website to see if I could glean an answer to that, and the company does offer a “personal stylist ” service that will “Make shopping fun and easy by curating items from the entire store that reflect your personal style, Advise you on the best shades and silhouettes for your coloring and body type, Put together a complete look for any occasion, Work within your budget and schedule. ” But the shopper has to make an appointment. Why not go to the next step? Once the initial consultation takes place, offer periodic updates (for curated seasonal fashions) or replenishment (for cosmetics) directly to the consumer!
Subscription retailing doesn’t have to be only an alternative for people who don’t have the time or who hate to shop. It can be part of the total Brand Experience. It’s another permutation of “omni-channel ” that even traditional retails can – and perhaps should – explore.