Business Insider reports about how Boxed, the online bulk retailer, has launched a new paid membership program offering “free rush shipping on orders over $20, improved customer service, price matching, and cash back on purchases” - all for $49 a year.
Ashish Prashar, the company's head of communications, says that the program was developed because customers were "looking for deeper discounts and unique offerings and were willing pay a little to get those … "All the best services have some sort of subscription model. People will pay for that premium service if it's unique and brings value to their lives.”
Boxed members not paying for membership must spend $50 on an order to get free shipping.
Ashish Prashar, the company's head of communications, says that the program was developed because customers were "looking for deeper discounts and unique offerings and were willing pay a little to get those … "All the best services have some sort of subscription model. People will pay for that premium service if it's unique and brings value to their lives.”
Boxed members not paying for membership must spend $50 on an order to get free shipping.
- KC's View:
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Interesting that this comes even as Boxed apparently has been dealing with interest on the part of several companies in acquiring its operations. The thing about subscription models is that they make it easier to stay connected and relevant to your best customers.
I would think it would be in Boxed’s best interests to also ramp up some sort of aggressive replenishment program as part of its membership structure. It is all about establishing an ecosystem that prevents people from going to the competition.
