What is Subscribe and Save?
Subscribe and Save is a subscription business model where your customer signs up for automatic, recurring purchases of the same products at a discounted price. This is a win-win system for retailers and their customers. You win by getting monthly recurring revenue (MRR), built-in customer loyalty and repeat purchases, and more predictable inventory needs. The customer wins by getting products they need on a regular basis at a better deal than if they made frequent traditional purchases.
How does Subscribe and Save work?
The Subscribe and Save model works best with consumable and replenishable products that customers need on a regular basis. Think of consumer packaged goods (CPG) like food, beverages, cosmetics, and cleaning products just to name a few. These are all great candidates because when customers buy them, they get a finite quantity within their given package and will eventually need a refill of that product. The Subscribe and Save model incentivises customers to make a commitment to you and your business and shows them good will from your end as you are giving them a price that they’d struggle to beat with one-off purchases elsewhere.