There aren’t many products as exhilarating as subscription boxes.
It’s as close as adults get to that child-like feeling on Christmas Day. Coming home from a long day to find a neatly packaged box with your name on it can put a smile on anyone’s face. This is one of the main reasons subscription box companies get in the game, to delight their customers. What can be hard for many companies in this industry, however, is finding new customers to delight in such a competitive marketplace.
Whether your box features trendy clothes, vegan snacks, or quilting supplies, there is always some kind of competitor out there. Growing despite the competition is as much about viral marketing and a great product as it is leveraging logistics, efficient packaging, and performing timely order fulfillment.
So how can the average subscription box company achieve rapid, yet sustainable growth?
We will start with some inventory management and logistics to explain how supply chain management can keep your entire operation running smooth. Then, we will talk about the fun stuff: the type of viral marketing that can make your subscription box a hit while not breaking the bank. And we will finish with what Big Sky Fulfillment knows best: storage, kitting, and fulfilling your orders so your customers can be wowed by your awesome product and timely delivery, every time.
Now, there are thousands of different subscription box companies out there, and almost none of them have the same logistics needs. But some inventory control methods and supply chain management techniques can help make any subscription box company more efficient, whether your product is perishable, ignitable, fragile, or none of the above.
Inventory Management: A Crucial Aspect of Growth.
It’s almost like how having a clean house can make you more productive at home. When your inventory is organized and processed in a way that is both easy and efficient for your company, you get to spend less time on that and more time on other ends of the business. For example, if you have a subscription box that features more than just a few items, you’ve probably already learned the benefits of an organized inventory. Using a first-in-first-out system can ensure you aren’t back-stocking old items, while regular accurate forecasting can help you better predict how much product you’ll be moving in the near future. Cycle counting and regular auditing can help you keep your inventory levels in check, and identify where your operations may be bottlenecking, slowing your efficiency.
Viral Growth for Subscription Box Companies.
What makes subscription boxes so appealing to customers is some combination of convenience and novelty. Take Big Sky Fulfillment owner Patrick Claytor’s own subscription box company, Quilty Box, for example. Not only is it incredibly convenient to have a month’s supply of quilting materials shipped to you if you’re a frequent quilter, the novelty items it features are curated by some of the biggest names in quilting and audience participation is very high because of it. People don’t often make reveal videos for the supplies they just purchased at Joann Fabrics or Michael’s but month after month, consumers flock to Youtube to post un-boxing videos of their Quilty Box.
https://www.youtube.com/watch?v=B4MSGiVh11A
Utilizing these two aspects, convenience and novelty, subscription box companies can create marketing plans focused on social media and email outreach, coupled with viral campaigns that target not only prospective consumers, but their friends and their friends’ friends. If done well, consumer reaction and participation can be at the center of your marketing strategy.
Subscription Box Companies and Order Fulfillment.
Almost everything you do impacts customer satisfaction in some way. Every ad they see, every page they visit on your website, and even the package design options influence how your customer will feel when they see your subscription box sitting on their front porch. So what order fulfillment methods can you utilize to keep your customers happy?
If running in-house order fulfillment, your inventory control methods will play perhaps the largest role in your efficiency. Being able to label, assemble, and ship your subscription boxes in a timely fashion is key. Having your products stored in an efficient manner will help make the entire in-house fulfillment operation run more efficiently.
When utilizing a third party service, there is less pressure on you to be organized with your product. A huge factor will be where your products are stored. If stored in-house, you’ll be stuck handling many of the same storage and assembly tasks you would if handling the entire process internally. If you’re storing off-site, quality control in terms of assembly should be a particular concern of yours, which is why it’s beneficial to partner with a fulfillment company that has experience in the subscription box industry.
No matter what fulfillment method you’re using, efficiency and scalability are the two most important factors in terms of growing your subscription box company. If off-site storage is too expensive to account for its benefits to your operation, focusing on optimizing in-house fulfillment methods should be your primary focus. If you find yourself struggling to store products or fulfill orders in a timely matter due to increasing demand, partnering with a fulfillment company may give you the boost you need to sustain your growth.
The customer is always… happy?
Growing a subscription box company is just as much about business operations as it is customer satisfaction, and often they go hand in hand. The more efficiently your company runs, the more likely you are to deliver a satisfactory product to your customer, and the more likely they are to become a loyal customer and an influencer among their social group by sharing the great experience they had using your product. Every step of the process, from choosing products and designing your package, to the second the customer opens your box, is really about customer satisfaction.