We're living in the golden era of subscription boxes right now.

The subscription model encapsulates many things – the classic magazine, the Netflix plan, cosmetics, snacks and self-care boxes. But it also covers things you might not think of, like contact lenses, washing tablets and pet food! 

Cost and convenience are the biggest appealing factors for consumers. The ability to receive regular instalments of a product or service without the need for reordering offers a refreshing level of stability in today's hectic world.

Subscription box services benefit merchants too, by offering a steady, predictable level of income and revenue for the company. Subscription boxes build customer loyalty and average customer lifetime value (ACLV) by generating regular opportunities for cross-selling, up-selling and new product trials.

Retailers looking to improve their subscription services and build consumer loyalty should pay close attention to the value of customer feedback.

Firstly, it's important to understand the four main types of subscriptions.

1. Fixed usage

As the name indicates, the fixed-usage subscription model provides a fixed quantity of goods or services, with a set timeframe and price.

2. Unlimited usage

Like the fixed-use subscription, there is a set price within the unlimited subscription offer. However, the timeframe or access to the product or service is unlimited. A good example is a gym membership or library card.

3. Pay-as-you-go subscription

Also known as no-commitment billing, this is probably the most commonly recognised subscription service. Monthly beauty boxes, snack assortments or self-care pamper kits are received and paid for monthly – and it's relatively easy to cancel or delay. 

4. Freemium model

This covers digital and cloud-based services, such as content access (think Spotify Premium). 

Pros, cons and the value of customer feedback

The pay-as-you-go subscription box is common and very popular. After all, who doesn't love a little gift to the self dropping through the letterbox? People like the PAYO subscription model because it combines convenience with flexibility. Ordering, shipment and billing recur automatically but can be adjusted easily.

One-off boxes can make great gifts (and might also create a second customer). And for those who are hooked, it's very easy to embed other offers into one-off subscriptions to encourage long-term commitment. These might include three-month, six-month or 12-month plans that yield a percentage discount.

Opt-in, opt-out flexibility may be its biggest asset, but it can also be considered subscription boxes' biggest challenge in many ways. With less risk and commitment required, consumers are more inclined to try your products out for a few months. And while many may become converts, it also makes cutting the subscription easier.

This means retailers zoning in on pamper kits and beauty boxes must be focused on constant innovation. New products, fresh packaging and trendy themes must be explored frequently to retain interest and minimise churn. The best way to do that? Focus on the customer's experience from browsing, to buying. 

To grow a subscription business sustainably, focus on these customer-centred topics:

• Make it easy for customers to skip or reschedule their deliveries. Being flexible has been proven to help retention dramatically.
• Reduce cart abandonment with a seamless checkout flow and multiple payment methods.
• Encourage long-term recurrence, cross-selling and referrals with discount codes and exciting new products.
• Reduce churn by maximising opportunities for customer feedback at all points – not just after they've cancelled their subscription.

Whether you're an established subscription provider or looking to get started, the mindset should be the same – running a successful subscription box offering is all about making it work for the customer.

Get your customers to tell you about what they like. Then implement it – and enjoy the increase in loyalty and retention. 

Here are some of the best ways to gather customer feedback:

1. Inserts 

This might be thinking inside the box, but there's a reason this tried-and-tested method for customer engagement is still knocking around. Including a call-to-action inside the shipment is a surefire way of getting your request for feedback in front of the receiver. 

Inserts can also be easily tailored depending on the needs of the shipper or receiver and the nature of the goods or service. Old-school stamped postcards or forms would be suitable for larger shipments, for example. This is particularly true for B2B subscriptions, where they can express the brand in a formalised way that's appropriate for whomever signs for it.

For a trendy pamper box start-up, an insert is a great opportunity for personalisation – and to communicate your company directly to the buyer. Particularly with eCommerce, this may be one of the only points your customer gets to experience your brand and what you stand for. 

In both scenarios, be sure to keep questions simple and to a short list. Make it engaging too – use QR codes so the insert stays simple and eye-catching, and use the opportunity to offer discounts for returning customers.

2. Newsletters

A newsletter included in the subscription box is a proven way of getting customers excited by your brand – and it easily allows for a friendly request for feedback.

Or go digital and send embedded surveys and polls to the mailing list – and use the subscription box insert as an opportunity to direct customers to your mailing list! For best results, be sure to offer some juicy incentives. 

3. Trial products

Have you got a new product or brand up for consideration for a box, but you're not quite sure whether it's the right fit? Why not add it as a free sample to a small number of subscriptions and ask customers to review it?

This has so many dual benefits it's almost criminal. Your customers feel special for receiving a surprise freebie and you get feedback from a smaller pool before releasing. 

4. Social media

Unboxing subscriptions has huge shareability potential for Tiktok, Instagram and Youtube. So there's plenty of opportunity here to collaborate with influencers or simply ask regular customers to take to social media.

Offer a discount in exchange for a social media review and a shared hashtag. You'll find out what consumers like and don't like faster than you can say "customer feedback". 

What's next?

Once feedback is received, the next step is action. Developing your brand, box and packaging is a busy job, so you need a fulfilment provider you can depend on. From bespoke packaging to customisable inserts, Stowsafe Fulfilment offers reliability and expertise for companies large and small.