The ‘Continuity’ of Subscription Marketing — Wow, It’s Everywhere!

Somewhere down the line, I missed the memo that “continuity clubs” is now a yesterday term and that “subscription marketing” is preferred. While some of us may recall “12 CDs for $.01” or may even today have a favorite product-of-the-month subscription, it seems marketing has fallen in love with subscriptions.

Somewhere down the line, I missed the memo that “continuity clubs” is now a yesterday term and that “subscription marketing” is preferred. While some of us may recall “12 CDs for $.01” or may even today have a favorite product-of-the-month subscription, it seems marketing has fallen in love with subscriptions.

Such was the topic of a recent Direct Marketing Club of New York luncheon — where featured representatives from the entirety of the “subscription ecosystem” shared their perspectives: Barry Blumenfield, BMI Fulfillment; Jim Fosina, Amora Coffee & Amora Tea; Robert Manger, Sandvik Publishing; Pattie Mercier, Vantiv; Craig Mirabella, EverBright Media; George Saul, Fosina Marketing — and serving as moderator, Stephanie Miller, TopRight.

It is truly astounding so many products can be “moved” by subscriptions — nail polish (Julip), underwear (FreshPair), software (Adobe), music streaming (Spotify, Apple), men’s designer wear (Trunk Club for Men), women’s shoes (Shoe Dazzle), cosmetics and personal care (Birchbox), buyers’ clubs (Amazon Prime), and dates (match.com) — just a few of the examples offered up, in addition to coffee/tea (Amora), and educational learning (EverBright Media and Sandvik Publishing) that were represented on the panel.

While the channels and the product mix have expanded, some tried-and-true maxims from the days of “book and music clubs” have not been lost, according to the panelists. They include:

  1. It’s all about the bond with the customer — how you differentiate your product and service to justify a continuing relationship and greater lifetime value.
  2. This is a direct marketing business — pay attention to marketing ROI in every detail, even when business is great, there could be warning signs of waste and cost in specific areas of marketing spend.
  3. The entirety of the customer experience needs to be looked after — from product development , to advertising, to ordering, to service (extending from self-service to contact centers), to fulfillment.
  4. Pay particularly close attention to such areas as technology and fulfillment: surprise and delight requires such focus.

While channel expansion has brought to the marketplace new realities:

  1. Does your brand have a “thumb stopping” moment? With more and more mobile engagement, subscription marketers must make it easy to stop the consumer, make her pause, and consider the product/service offer in a mobile moment.
  2. There is a role for every channel — but each channel has its own metrics to pay attention to. While the panelists were proprietary with details, the lifetime value of a customer acquired via email, direct mail, DRTV, website or mobile most likely is distinct from each other — and may have different attrition rates. You’ll need to manage these distinctions in the marketing mix.
  3. A payment processing partner is important. In any given year, millions of credit cards expire — and this will be even more prevalent as chip-enabled cards flow into the marketplace.
  4. “Bill me” invoicing — once a mainstay in the business — has practically disappeared altogether over the last five years — as consumers in general appear to have become more casual about not paying.

To say the least, this business model has expanded far beyond books, magazines and music — and it makes me wonder: What’s next?

Author: Chet Dalzell

Marketing Sustainably: A blog posting questions, opportunities, concerns and observations on sustainability in marketing. Chet Dalzell has 25 years of public relations management and expertise in service to leading brands in consumer, donor, patient and business-to-business markets, and in the field of integrated marketing. He serves on the ANA International ECHO Awards Board of Governors, as an adviser to the Direct Marketing Club of New York, and is senior director, communications and industry relations, with the Digital Advertising Alliance. Chet loves UConn Basketball (men's and women's) and Nebraska Football (that's just men, at this point), too! 

3 thoughts on “The ‘Continuity’ of Subscription Marketing — Wow, It’s Everywhere!”

  1. Chet,

    Dandy piece on continuities. Peggy and I have signed up for a fascinating program—Blue Apron.
    https://www.blueapron.com
    Three dinners a week for 2 people—all fresh ingredients, really inventive spices. 8-1/2″ x 11″ recipe card with photos of finished meal, all raw ingredients and step-by-step foolproof instruction. All the customer needs supply is salt, pepper and olive oil. All other ingredients come as needed. If the recipe calls for a 2 tablespoons of capers, you receive two tablespoons of capers. You don’t have a jar of leftover capers sitting in the fridge for 6 most. until you chuck them out. Cost? $60 a week—3 meals, 2 people, roughly $10/pp. Being an old book club-continuity geezer, I would love to see the production line. Keep up the good work. Cheers. —Denny Hatch, dennyhatch@yahoo.com

    1. Denny, your comment made my mouth water, seriously. I’m going to check it out — sounds very price competitive to my Manhattan grocer!

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