Analyzing the Growth of the Ecommerce Subscription Model
Kaya Ismail,
The ecommerce subscription model is growing at a rapid pace. According to Forbes, the subscription box industry grew by 890% over a four year period. Now, more ecommerce brands are left wondering how they can capture some of this value.
Why are some consumers drawn to subscriptions and regular deliveries of items? What is subscription management software, and how is it helping ecommerce brands adopt a subscription-based business model? We’ve turned to the experts to learn more.
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What is Subscription Management Software?
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“From a subscription management perspective the sales technology they’re using has to enable ease in adjusting, pausing, renewing and upgrading the subscription,” added Valerie Howard, solution strategy director at PROS. The software should go beyond this, however, and be able to track consumer data and identify customer buying trends. That way, Howard says, brands can determine “when a customer may need to consider upgrading their subscription or when they want to consider trying out a new product line.” Personalization is a crucial aspect of the subscription box model, and brands need the right software in place to be able to tailor their service to the individual.