What is Birchboxs monthly churn rate

White Paper "Digitization and New Commerce"

Away from possession,

to the subscription

Just a few years ago, the subscription services offered were limited to print media such as books, newspapers and magazines. The music industry followed later. With increasing digitization, the subscription model exploded. Driven by customers' desire for more convenience, there are countless subscription products available today.

Netflix
The world's leading streaming provider with over 158 million paid memberships in over 190 countries. Members can watch as many series and films as they want on any online screen at any time and without commercial breaks.

Dollar Shave Club
The Dollar Shave Club delivers razor blades and care products to its members at freely selectable intervals. It started 7 years ago in the USA and has since been imitated worldwide.

Amazon savings subscription
For a range of groceries, household products and drugstore items, Amazon allows you to order by subscription. Subscription items are usually offered cheaper than the same product with a one-off order. The buyer himself decides on the desired delivery cycle and no longer has to worry about reordering his consumables.

Boxing subscriptions
A popular form of subscription is the delivery of product boxes at preset intervals. Weekly, monthly or quarterly, the subscribers receive a box with goods conveniently to their home. Well-known examples of this are suppliers of beauty products (Birchbox), pet food (BarkBox), toys (Hoppi Box) or food (Hello Fresh). Curated shopping service providers should be mentioned as a special feature. In other words, those providers who put together clothing boxes (Outfittery) for their subscribers. The box supplied contains a selection of clothing items. The customer keeps what he likes. The rest will be sent back.

The subscription model has evolved and is now an integral part of the marketing of products and services. Everything that can be subscribed to has evolved significantly over time. The way subscriptions work has also changed. You have become significantly more flexible and customer-oriented. The focus is shifting away from the product towards the customer. And of course he is happy about the increased interest in him.