![]() ![]() Often, subscription box businesses were spending more on acquisition efforts than they could make back before that customer cancelled the subscription. The cause? An acquisition-centric business model. But by 2019, it had lost 95% of its stock value. ![]() For example, when Blue Apron went public in 2017, the company raised a $300 million IPO. Throughout the 2010s, subscription boxes grew quickly. Now, the lessons that many of subscription-first pioneers learned are proving instrumental in shaping the future of direct-to-consumer subscription models. To achieve long-term business success and grow their revenue, companies like Birchbox, Blue Apron and others began to shift their focus on retention by prioritizing customer relationships and data-driven personalization. An entirely new strategy was needed to stem the tide. Companies in other industries jumped on board, too-services like Blue Apron offered to take the planning out of meal preparation, delivering ready-to-cook kits to consumers, while brands like Stitch Fix selected outfits for members to take the headache out of shopping for clothes.īut within a few years, the initial excitement wore off and, despite the success of acquisition efforts, customers began to cancel their memberships. ![]() A monthly package of thoughtfully selected beauty products excited customers, who were intrigued by convenience and curation. At their inception in the early 2010s, subscription box services like Birchbox and Ipsy relied on novelty. ![]()
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