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Ecommerce Growth Leads Many Brands To Adopt Subscription Strategies - Digital Media Solutions

Ecommerce Growth Leads Many Brands To Adopt Subscription Strategies - Digital Media Solutions | The Marteq Alert |
Many consumers are clamoring for subscriptions, making subscription products and services smart digital options for brands that want to reach more consumers and capitalize on ecommerce revenues. Companies that sell meal kits saw big upticks during the pandemic while consumers were cooking at home instead of going out. And, many CPG brands, like Pepsi, launched direct-to-consumer (DTC) offerings that are likely to include a subscription option eventually. 

These distinctions likely indicate that many start-ups and younger brands embrace the subscription trend. And, alternatively, that big, successful brands can capture a share of revenue from subscriptions without it impacting their bottom line very much if it goes south, allowing for experimentation. As ecommerce continues to surge and consumer behaviors shift, brands that are willing to leverage subscription offerings with existing customers, or take calculated risks to reach new audiences, may find themselves in better positions now and in the future.
CYDigital/'s insight:

Consumables, not durables. Regardless, if there's a subscription model, there's probably an application of blockchain waiting.


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What B2B Companies Get Wrong About Volume Discounts - HBR

What B2B Companies Get Wrong About Volume Discounts - HBR | The Marteq Alert |
Never forget: the key goal of volume discounting is to incentivize additional purchases. Most managers don’t understand the purpose of a volume discount. A classic mistake is to blindly subscribe to the “if you buy more, I have no choice but to give you a break” mentality. That’s incorrect. A discount is only necessary when it leads to a sale that will deliver additional profit that wouldn’t have otherwise been earned.

Many B2B managers view volume discounts as a reward to their biggest customers. While it’s important to show appreciation to kingpin clients, providing discounts shouldn’t be the lead gesture. There are less expensive ways to express gratitude. And remember, in many situations a big purchase simply means the customer loves (or needs) the product–a reason to hold the line on pricing.

When possible, tailor volume discounts to each customer. A key challenge of designing any volume discount strategy is that each customer has a different level of what they consider to be a “large purchase.”
CYDigital/'s insight:

Great article on the subject, and worthwhile to click through and spend a few minutes reading it in its entirety.


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