What is a subscription model in the food & beverage industry?
The global pandemic brought eCommerce to center stage for F&B retailers. Most consumers are opting for eCommerce stores as a way to stock up or top off their regular grocery needs in addition to in-store shopping. And this is where eCommerce subscription models come in—making recurring orders fast, easy, and convenient for customers.
How big is the F&B industry?
F&B is one of the fastest growing industries, expected to grow at CAGR 24.4% annually. Globally, the online sales in the F&B market will make up 20% of the overall sales, by 2025. The industry is growing by leaps and bounds giving rise to fierce competition amongst eCommerce stores. Customers are enjoying the ease of shopping food and beverage products at their fingertips.
- 53% of online shoppers in the U.S. reported that they will likely continue to use online grocery pickup or delivery
- Online sales will account for 15-20% of the food and beverage industry’s overall sales by 2025
- Millennials make up 49% of all online grocery purchases/ food and beverage ecommerce purchases
Benefits of subscriptions in the F&B industry
The food and beverage industry has been evolving at a rapid pace owing to digitization and the rise of ecommerce in the landscape. But let’s take a look at some of the benefits of the ecommerce subscription model from the perspective of consumers and businesses.
Benefits to customers
Buy products at lower prices
A subscription model in the food and beverage business offers many price benefits to customers — products at discounted rates, product bundles, incentives such as free shipping, etc. With subscriptions, customers pay less and save a lot over time.
Discover new products
Consumers can easily discover what’s new in the F&B market without going through the process of looking around for them. How? Via their subscriptions. eCommerce stores with subscriptions keep introducing new products via the subscription deliveries. Moreover, brands know exactly what their customers like and offer tailored products, and recommendations, too.
Hassle-free recurring purchases
Today’s customers are particular about what they eat and drink. Also, they expect brands to offer easy and efficient purchase experiences. That’s exactly what eCommerce subscription models are designed for—recurring orders placed in a jiffy, and delivered at the doorstep.
Enjoy a personalized experience
When customers buy subscriptions from eCommerce stores, they usually enter into long-term relationships with brands. This helps brands to understand them better over time and offer a more personalized and satisfactory experience to them.
Benefits to retailers
Customers replenish and restock food and beverage items on a regular basis. With a subscriptions model for your food and beverage business, you can predict your recurring revenue month-after-month. This way, you can plan ahead for new customer acquisition, manage inventory accordingly, etc.
Better inventory management
Food and beverage is a fast-selling, running product. A subscription model in your food and beverage businesses can help you ace inventory management. The result: you can get a good estimation of your monthly stock requirements; avoid overstocking or understocking.
Increase customer engagement and loyalty
Subscriptions in food and beverage businesses can help you get a regular pulse on how your customers feel about you. Based on that, you can take actions to enhance their experience. Improving customer engagement can help increase revenue by 40%.
A boost in customer lifetime value
When your customers sign up to your eCommerce subscription model, they enter into a long-term relationship with you. If you retain each of your customers long enough, you can make a lot more from each of them, increasing the customer lifetime value rate of your Shopify store.
Why Appstle Subscriptions and Loyalty is the best subscriptions app for the F&B industry?
Makes subscriptions set-up and management easy
To stay competitive in the market, a subscriptions business model is a must for Shopify food and beverage brands. And running a subscriptions business with efficiency requires the right digital tool. From set-up to easy management, Appstle does the heavy lifting for you—so you can focus on your business goals.
Comprehensive features for subscriptions businesses
With Appstle, you can incorporate the most important drivers of customers’ online journey—recapture failed transactions via automated features, send real-time, timely notifications, auto-billing, subscription self-serve access to customers, and more. In short, Appstle is the best Shopify app for subscriptions with the most compelling suite of features.
Boosts profits with a recurring revenue stream
Appstle ensure you keep providing a good, hassle-free, and efficient experience to your customers, month-after-month. Ensure a recurring revenue stream and a steady profit flow. Automate your Shopify food and beverage brand growth.
Easy migration and seamless integration
Whether you’re an eCommerce store looking to migrate to the best Shopify subscriptions app, or you’re launching a new subscriptions business, Appstle makes it a breeze. The app enables easy migration from other platforms, as well as integrates easily with your existing app.
Enhance customer engagement and loyalty
Struggling to keep customers engaged? Appstle provides strategic and targeted rewards to keep your customers engaged, happy, and special. Send personalized emails, run targeted promotions, enable self-managed subscription options—so your customers remain true blue.
Offer customized subscription plans
Appstle allows you to choose from multiple subscription model types—conventional subscription to build-a-box plans, etc. No matter your customers’ preference, product category, and business, Appstle fits like a glove to your Shopify food and beverage brand.
Highly flexible and easy to use
Appstle understands that eCommerce brands need flexibility and efficiency and offers a seamless, hands-on, flexible, and easy-to-use platform that can transform how you manage your subscription model in the food and beverage industry.