The subscription box industry is growing fast. In 2021, it made $22.7 billion and might reach $65 billion by 2027. With so many companies joining in, it’s important to use every tool available to succeed. One of the best tools is post-purchase analytics.

Key Takeaways

Aspect	Insight
Market Growth	Expected to reach $105.4 billion by 2032
Popular Box Types	Curation (55%), Replenishment (32%), Access (13%)
Average Profit Margin	40-60%
Key Demographics	60% women, mostly ages 25-44
Churn Rate	Average 10.54%

Understanding the Subscription Box Market

Let’s look at what’s happening in the subscription box world right now:

Key Subscription Box Market Statistics

• Global market size was $32.9 billion in 2023
• Expected to grow to $105.4 billion by 2032
• Yearly growth rate of 14% expected from 2024-2032
• Most popular: Curation boxes (55% of subscriptions)
• Second most popular: Replenishment boxes (32%)
• Third most popular: Access boxes (13%)
• Average profit margin is 40-60%
• 15% of online shoppers use subscription boxes
• 60% of subscribers are women
• Most subscribers are 25-44 years old
• On average, 10.54% of customers cancel each month
• Personalization and convenience keep customers happy

With these big numbers, many businesses want to start subscription boxes. But it’s not easy to be successful. You need to really understand your customers. That’s where post-purchase analytics help.

What Are Post-Purchase Analytics?

Post-purchase analytics means collecting and studying information about what customers do after they buy something. For subscription boxes, this includes:

• How often customers use the products
• Which items customers like most
• When customers are likely to cancel
• What makes customers happy or unhappy
• How often customers buy again or upgrade
• What customers say about specific products

By looking at this information, subscription box companies can make better choices about products and how to keep customers happy.

How Post-Purchase Analytics Help Subscription Boxes Grow

Here’s how post-purchase analytics can help your subscription box business:

1. Keeping Customers Longer and proactively reducing churn

On average, subscription boxes lose 10% of their customers every month. That’s a lot! But with post-purchase analytics, you can spot signs that a customer might cancel and try to keep them.

Proactive customer service is important. By looking at customer behavior, you can tell when someone might be losing interest. Maybe they’re not using certain products, or they’ve complained to customer support. If you know this, you can reach out to help them before they cancel.

Other churn reduction strategies may include understanding the lifetime of an average customer and combining it with proactive churn reduction measures, like offering options to pause or skip subscriptions, or locking customers into longer term subscriptions in exchange for discounts during periods of low churn and high anticipation.

2. Choosing Better Products

It’s hard to always pick products that customers will love. Post-purchase analytics show you which items are popular and which aren’t.

For example, if you have a beauty subscription box, you might find out that customers love trying new lipsticks but don’t use face masks much. This could help you decide to include more lip products and fewer face masks. You might also notice that people like different products in different seasons.

3. Making Each Customer’s Experience Special

Personalization has become a cornerstone of successful subscription box services in today’s market. While acquiring new customers is important, the real value lies in understanding and catering to each subscriber’s unique preferences and behaviors. Through strategic use of post-purchase analytics, businesses can transform generic subscription experiences into tailored journeys that resonate with individual customers. This data-driven approach not only enhances customer satisfaction but also builds lasting relationships that reduce churn and increase lifetime value. Post-purchase analytics help you do this. You can:

• Choose products based on what each customer likes
• Change how often boxes are delivered based on how customers use them
• Send special offers for products that go well with what customers already have
• Provide tips or instructions for using the products
• Create box themes that match what individual customers like

By making sure customers are happy with what they buy, they’ll stay subscribed longer.

4. Running Your Business Better

Post-purchase analytics also help you manage your business more efficiently. By understanding what products customers use and like, you can:

• Better predict what products you’ll need
• Improve how you package and ship boxes
• Negotiate better with suppliers based on what’s popular
• Avoid having too much or too little stock

Using WISMO Strategies to Make Customers Happier

WISMO means “Where Is My Order?” It’s a common question in online shopping, especially for subscription boxes. After all, customers are excited to get their monthly boxes!

Using smart computer programs can make shipping support better. By using WISMO strategies, you can:

• Have fewer customers asking where their orders are
• Make customers happier by telling them about their shipments before they ask
• Build trust by being open about shipping information
• Give real-time tracking updates through email, text, or app notifications
• Let customers check on their orders themselves

Making Things Personal Using Data

Let’s look closer at how post-purchase analytics can help make each customer’s experience special:

1. Understanding What Customers Like

By studying how customers use the products in their boxes, you can learn a lot about what they like. This includes:

• How often they use different products
• Their favorite brands or styles
• How much they’re willing to spend
• What they like in different seasons
• Their lifestyle (like if they’re vegan or love fitness)
• If they buy subscriptions as gifts

2. Choosing Products Just for Them

With this information, you can make boxes that are perfect for each customer. For example, a food subscription box might adjust how spicy things are based on what customers say. A clothing box could focus on styles that a customer always rates highly.

3. Making the After-Purchase Experience Special

The personal touch doesn’t stop when the box is delivered. You can use post-purchase analytics to:

• Create custom guides for using products
• Send reminders to reorder at the right time
• Suggest other products they might like
• Provide personalized content (like recipes or styling tips)
• Ask for feedback in a way that’s relevant to them

Having an easy-to-use return system also makes customers happier. It lets them manage their subscriptions and returns easily, which they like and which helps your customer service team.

Conclusion: Making Your Subscription Box Business Successful with Post-Purchase Analytics

In the competitive world of subscription boxes, using post-purchase analytics is really important. It helps you create experiences that customers love, which keeps them coming back month after month. From keeping customers longer to choosing better products, post-purchase analytics give you the information you need to grow your business.

Remember, the key is to keep looking at your data, trying new things, and changing as your customers’ needs change. By making post-purchase analytics a big part of how you run your business, you’ll be ready to do well in the exciting world of subscription boxes.

Are you ready to use post-purchase analytics to make your subscription box business better? The future of personalized, data-driven customer experiences is waiting for you!