Blog

How To: Delivering a superior subscription commerce experience

Chris Anton, executive vice president at SnapFulfil, explains why retailers must ensure they deliver the ultimate end-to-end experience to drive sales and meet customers' increasing demand for speed, accuracy and customization when it comes to subscription commerce efforts.

Photo by istock.com

September 13, 2019 by Chris Anton — Executive Vice President, SnapFulfil

By Chris Anton, executive vice president at SnapFulfil

Shoppers love personalization. So much so that McKinsey & Company reports subscription commerce (subcom), which thrives on personalization, has grown by more than 100 percent annually over the past five years. It's the gift that keeps on giving — or rather, the package that keeps on coming.
Consumers receive with regularity almost any kind of subscription box they want: coffee, clothing, cosmetics, chocolate, razors, meal kits, wine. You name it, and chances are there's a subscription box for it. In fact, 15 percent of online consumers have signed up for one or more subscriptions to receive products on a recurring, often monthly basis.

Although there's no sign this retail trend will slow down soon, consumers are quick to cancel services that don't meet their need for superior, personalized service. Therefore, retailers must ensure they deliver the ultimate end-to-end experience to drive sales and meet customers' increasing demand for speed, accuracy and customization.

Here are some tips for increased subcom success:

Choose the right model
Retailers usually offer two types of subscription commerce — continuity or curation. Continuity models allow shoppers to receive their shipment of goods such as diapers or pet food on a set schedule. It ensures a package of frequently used products will automatically arrive, often monthly, without the customer having to re-order. Curation models are usually based on a theme such as women's clothing and contain a different selection of items each month or quarter, often at unexpected times.

Whichever model you choose, your warehouse staff must be prepared for subcom-related peaks and valleys. Since continuity boxes are set up based on a customer's preference, can your fulfillment center handle the sporadic shipping structure and constantly shifting stock quantities? Curation boxes, which often ship to all customers on the same day each month, create 12 mini-peak seasons throughout the year. How satisfied will customers be if your warehouse can't keep up?

Warehouse management technology uses data to help you plan for the highs and lows that go with subcom shipping, while allowing you to staff your fulfillment center optimally.

Ensure you can meet customers' increasing demands

A 2019 SnapFulfil and Subscription Trade Association (SUBTA) report shows 60 percent of subcom companies employ five or fewer people in their fulfillment operation. The same report cites 72 percent of subscription commerce providers keep their fulfillment processes in-house, forgoing a third-party logistics provider (3PL).

Keeping up with orders could be problematic for small, in-house subcom operations as they scale, particularly for those that rely on inefficient paper-based warehouse management processes. And delivering on demand, whether that's having the right inventory or shipping quickly to meet customers' expectations, is an ongoing concern. In fact, 48 percent of those surveyed cited demand forecasting as one of their greatest fulfillment challenge.

A warehouse management system (WMS) provides insight into historical data, allowing you to understand when past inventory levels were optimal, if stockouts occurred, whether packages went out on time and whether enough staff was on hand. It allows you to better plan for future subcom shipments and fine tune your fulfillment strategy to ensure customer experience doesn't suffer.

Deliver packages like clockwork

Today's customers expect their packages to arrive on time, and in a retail environment where giants such as Amazon have trained customers to expect fast (and often free) shipping, missing your window can significantly impact the customer experience. Even then, on-time delivery is not enough — modern shoppers demand the perfect blend of speed, accuracy and customization with their retail experience.

The right technology eliminates the complexities that come with subscription commerce's last mile. By digging into the data around your pick, pack and ship processes, you can streamline box preparation and allow your pickers to move more efficiently around the warehouse. Your packers will have an extra “eye” helping ensure quality control and that the right items go in the right boxes. And your customers will have the visibility into order status they demand.

Deliver a box of "wow"

Subscription commerce is all about the experience — whether that's surprising and delighting customers with curated boxes, or making life easier with continuity boxes. Don't let your operations get in the way of that experience. Whether you're launching a new offering or preparing to scale, invest in tools that provide real-time visibility into your data, shipping, returns and inventory placement so you never miss a beat.

About Chris Anton

---

Chris Anton joined the Snapfulfil team in early 2013 and has nearly 20 years of supply chain industry experience, with a focus on warehouse management software. Prior to Snapfulfil Chris served in roles at HighJump Software, Vitech Business Group and JDA. Chris leads global sales operations for Snapfulfil and continues to manage its growth as a premier cloud-based WMS provider.

Connect with Chris: