Navigating CX challenges in the booming digital retail subscription services market
Guest post – Louise Roches, Director of Customer Solutions at Quantanite.
Digital retail subscription services face several customer experience (CX) challenges, including customer acquisition and retention, personalisation, user experience and subscription fatigue. To overcome these challenges, subscription services need to provide a personalised and seamless user experience, continuously attract and retain customers, and overcome “subscription fatigue.”
In terms of people challenges, digital retail subscription services must hire and retain talent, manage employee workloads, and balance cost-saving measures with providing a high-quality customer experience. Finding and retaining the right employees and managing their workloads is critical to maintain operations and growth. Balancing cost-saving measures with customer satisfaction is also crucial to maintain customer loyalty.
Subscription services trend report
Subscription services are becoming increasingly popular, and there is data to support this trend. According to a report by McKinsey & Company, subscription-based models are growing at a faster rate than traditional retail, and the global subscription economy is estimated to reach $500 billion by the end of 2023.
The report also found that the growth of subscription services is driven by several factors, including:
- Increased Customer Engagement: By having a recurring relationship with customers, subscription services can increase customer engagement and loyalty, leading to higher customer lifetime value.
- Convenience: Subscription services offer customers the convenience of having products and services delivered directly to them on a regular basis, without the need to make repeated trips to a store or spend time browsing online.
- Personalisation: Many subscription services offer personalised experiences, such as customised product recommendations, tailored to the customer’s preferences and behaviour.
- Cost Savings: In some cases, subscription services can offer cost savings compared to purchasing products individually, especially for products that are used frequently.
Transform Subscription Services with the right CX Solution
Fashion Subscription Services:
In the world of fashion subscription services, providing exceptional customer experience (CX) solutions can be transformative. By offering personalised styling services, subscribers can receive clothing and accessories based on their preferences. Additionally, access to support and advice at their fingertips can enhance their experience. Clothing rental services that offer rotating selections of clothing and accessories, like Rent the Runway, can also be appealing. Overall, incorporating CX solutions into fashion subscription services can make a significant difference in customer satisfaction and retention.
Sports Subscription Services:
UK sports fans can enjoy a range of subscription services that offer access to live and archived events, as well as other content and programming. Among these services are Sky Sports, which offers a variety of subscription options for football, cricket, rugby, F1 and more. Fans of boxing and MMA can subscribe to the DAZN platform for access to live events, while the Premier Player service provides access to live and archived rugby games from the Gallagher Premiership and European competitions. Having the right CX solution in place has the potential to transform Sports Subscription Services in the way fans engage with their provider, ensuring a more personalised and interactive experience.
The trend is growing and there are now many other companies offering similar services in these and other markets.
To learn how Quantanite can improve your company’s Customer Experience Management contact us today.