Archive for February, 2013

Drive Repeat!

My twin sister Lynda (on right) and me. BTW our nicknames in high school were Pete and Repete. Apropos for this post!

I’ve always believed businesses are built on repeat.  All the businesses I ever worked on needed at least a 40% repeat rate to be viable.  And when you do the math – which I just love to model – you see just how much of the volume is due to repeat.  That 80/20 rule (80% of the volume comes from 20% of the users) really does come true.

So the new trend of subscription services is very intriguing.  Of course, insurance premiums and financial products have known how to do this for decades.  But now hard goods has an easy way to drive repeat with their best customers using these services.  Here are some new ideas on the market:

  • Birchbox for Men -  monthly subscription service that’s like getting a goody box in the mail. The men’s Birchbox contains a menagerie of lifestyle and grooming products plus snacks. The subscription is $20 per month.  See more men’s services in this article from November in Mashable.  (FYI..there is Birchbox for women too.)
  • Amazon Prime – As Jeff Bezos says, “…Prime is now the best value in the history of shopping.” For an annual subscription of $79 you get free unlimited two-day shipping for 15 million items.  This service drives repeat of Amazon in our household!  There’s no official number of subscribers, but Piper Jaffrey estimates it at 10 million at the end of 2011.
  • Member.ly – To run your own subscription service is as easy as using member.ly.  You can be your own curator!
  • Executive clothing shopping services:  There are many to choose from but my favorite is Corset Styling.  It’s a local Edina store but stylist Jodi Montgomery Mayers has customers all over the country.  This group is high service and wonderful style!

On a side note, I guess I inherently have an interest in “repeat” given I’m an identical twin.  My twin sister Lynda and I were called “Pete” and “RePete” in high school (my maiden name is Peterson.)  There’s a lot to love in repeat!!

 

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