136: The Modern Subscription Models | Marketing Tip Monday

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Today we are covering modern subscription models. The pandemic changed many things about our daily rituals, not least among them being the way we shop and the businesses we choose to support. Wine Club memberships and various online channels continue to offer consumers easy ways to stock up on a selection of wines curated to their unique preferences. Gaynor Strachan Chun, Head of Brand Strategy for WineGlass Marketing explains what these changes mean for wine clubs in her article, Is Your Wine Club Keeping Up With Modern Subscription Models? Here is a breakdown:

Why Do Your Subscribers Join?

According to Gaynor, "it is now estimated that the average person is a member of two re-occurring subscriptions and 35% belong to three or more," and this has been motivated by three main factors:

  1. Changes in consumer culture: Rather than taking the path of least resistance where whatever is on the shelf is placed in our consumers carts, thoughtful decisions are made as they research brands and products based on their values and preferences. Support is granted to brands and products that align with their values and that they feel good supporting.
  2. Curiosity: Online shopping offers consumers a broad look at the market and the opportunity to see what's really out there. Trying new things has never been easier than clicking "add to cart". Plus, who doesn't like getting a package in the mail?
  3. Values have evolved: With the stresses and pressures of daily life and busy schedules, saving time has taken precedence over saving a few bucks. Consumers want products and bundles that fit their individual needs!

Consider these shifts. Are you meeting the evolved needs and expectations of your loyal customers?

Consumer Values Give Rise to 3 Subscription Models

In light of these changes, a McKinsey Report announced the emergence of 3 Subscription Models:

  1. Subscribe for Access: These consumers value exclusive access and VIP perks provided by their memberships. Access is the primary motivator of 13% of consumers.
    • Most relevant categories: Apparel, Food, and Wine
  2. Subscribe for Replenishment: Time and money are the key values of these consumers. They know what they like, and want their items replenished as their stocks run low. This model accounts for 32% of consumers.
    • Most relevant categories: Household items, Razors, Vitamins, Towels
  3. Subscribe for Curation: Variety is the spice of life! Whether they prefer to have a hand in the selection process or are open to surprise, curation model consumers want to mix it up. A whopping 55% of consumers subscribe for curation!
    • Most relevant categories: Food, Beauty, Wellness, Treats, Apparel

Gaynor states that the wine industry must evolve the traditional wine club model to tap into this growing desire for curation-based subscriptions. Here is how you can establish your own a successful Subscribe for Curation offer:

Check out the show notes to read Gaynor’s show article and to sign up for our marketing tips newsletter.

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