Over the past decade, subscription services have grown from a new idea into an important sector of the economy, attracting customers across the United States and receiving billions of dollars in venture capital investment. Subscription companies offer a wide array of products, but what they all have in common are novelty and excitement.
Why Subscription Services Appeal to Consumers
Neuroscientists have discovered that when humans have new experiences, parts of the brain that are associated with reward and pleasure-seeking are triggered. This principle is at the heart of the success of subscription box services, in which consumers pay to receive boxes containing a variety of items.
Subscription services fall into three main categories:
- Curated services which send customers collections of personalized items that are chosen based on consumers’ stated preferences.
- Replenishment services which provide customers with items they use on a regular basis, which eliminates the need to go to a store and saves people money.
- Subscription services offer consumers access to exclusive items that they would not find elsewhere or provide discounts on things they would have bought anyway.
Although they give general guidelines related to the types of items they would like to receive, customers choose subscription services because they want to be surprised by some of the things they find in their boxes. Receiving new and unexpected items tailored to their preferences is a large part of what makes subscription services so appealing to consumers.
Companies that offer subscription services often use machine learning to decide which items to include in individual customers’ boxes. Consumers can specify their preferences and provide feedback on the items they have already received to help companies choose items for future boxes that more closely align with what customers want and enjoy.
What Makes Subscription Services Successful
The novelty of opening boxes and receiving surprises each month is one of the main reasons why customers sign up for subscription services and stick with companies for years. Businesses that consistently offer interesting and high-quality products retain consumers and succeed over the long term.
When handling recurring payments, making the process easy and seamless is essential to keep customers satisfied. If you are thinking about setting up a subscription service, or if you already operate one but have found your current payment system too complicated or burdensome, Subscription DNA can make things simpler. We can process regular recurring payments and make signing up easy for customers. Contact us today to learn more!