Can Subscription Retail Solve Its Customer Retention Problem? | RetailTechPodcast

Can Subscription Retail Solve Its Customer Retention Problem?

Subscription retail's unique customer retention challenges, exemplified by churn rates of up to 40% in the meal kit category;. It's safe to say that subscription retail has a serious customer retention problem. "Adjust your mindset because customer retention is not a problem to be solved - more like a chronic condition to be managed," said Carl Gold, Chief Data Scientist at Zuora, which specializes in subscription models and their associated data strategies. Customer retention became a high-profile problem in this category as its most popular site, Blue Apron, went public and invited the unforgiving eye of stock analysts. The first step for subscription retailers to address this problem is to be vigilant about identifying behaviors that indicate the customer is likely to leave. Customer retention can be amplified by offering multiple subscription and product options. Bottom line, retention in the retail subscription business hinges on customer relationships and the ability to leverage the data from those relationships. Read more