With the popularity of subscription-based retail services on the rise, efficient tech solutions have become integral to creating a smooth, seamless consumer experience.
On Thursday, Ordergroove, an online commerce solutions provider, announced a new platform specifically designed to help emerging businesses launch their first recurring revenue programs. Ordergroove Essentials services brands with business models that include subscriptions, memberships and predictive reordering, helping them to manage these serialized revenue processes.
“Recurring revenue experiences have been the fastest growing segment of commerce every year since 2016. Subscriptions and other recurring revenue programs are a must-have for brands and retailers looking to transform their businesses from one-and-done transactions to loyal customer relationships,” said Greg Alvo, Ordergroove’s CEO in a statement about the new platform. He went on to say that Ordergroove Essentials would focus on providing a frictionless experience for retail consumers.
The platform provides brands with visibility into performance analytics and the ability to monitor and tailor their recurring revenue programs in real time. With the company’s Relationship Commerce Cloud, brands can create unique customer experiences with choices of designs and layouts. The program also integrates with popular sales platforms, like Salesforce Commerce Cloud, Shopify Plus, BigCommerce and Magento. Ordergroove works with consumer goods brands like L’Oreal, Illy and Unilever, which use its Enterprise solution.
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According to an Ordergroove study released in January, more than 80 percent of retailers described long-term recurring revenue relationships as a significant priority in their overall strategies. Popular subscription services like Rent the Runway and Stitch Fix, along with membership programs like the massively successful Amazon Prime, have capitalized on the recurring revenue model, underscoring the importance of creating an infrastructure that keeps consumers coming back for more.
More than half (54 percent) of the companies surveyed believe that recurring purchases will boost revenue this year and in the future, and brands described the vast majority (86 percent) of their subscription customers as more satisfied than non-subscribers.
Nuuly, Urban Outfitters’ newly-launched subscription service, is banking on this philosophy as it embarks upon its latest venture. The company based its plan and offerings on “extensive surveys, interviews, and focus groups, both to existing Urban brand customers and potential new customers,” Dave Hayne, the company’s president told Sourcing Journal. Hayne noted a discrepancy between the high interest in apparel rental subscription services and low adoption rates and awareness among respondents. The trend suggests that the era of the subscriptions and memberships is upon us, but hasn’t yet hit its stride.
With new technology to make running a recurring revenue business easier than ever before, brands may soon have an opportunity to bridge the gap between consumer interest and adoption.