Online experience retailer RedBalloon is set for further growth after launching a subscription commerce model as part of its product diversification strategy.
The initiative means consumers can purchase three, six or 12 month subscriptions to products from a range of brands in the gourmet food/wine and lifestyle categories including Ecoya, Max Brenner and Republica Coffee. They can also be bought as a one off gift. Products are full sized – not samples.
Retail subscriptions have gained popularity overseas but are yet to gain mainstream attention in Australia.
“Subscription commerce has risen as a major retail trend, gaining particular strength and traction across the US and UK markets,” says Kristie Buchanan, RedBalloon CEO. “But Australia remains fragmented and dominated by many small players, so we saw this as a great opportunity to become a leader in the local market.
“This new offering is all about creating and fostering an ongoing relationship with our customers – surprising and delighting them with a new product each month.”
RedBalloon is striving for over 20 per cent growth this financial year. Since launching 12 years ago it has sold two million experiences with one million of those in the last two years alone.
“Key to our ongoing growth and success is never standing still or resting on our laurels,” she adds. “We have reset our BHAG (Big Hairy Audacious Goal) and are now aiming to deliver five million ‘good times’ by 2020. That’s five million customers rating us a nine or 10 out of 10 – we don’t just want customers, we want happy customers and raving fans.”
Retail prices start at $29 a month including delivery and transaction fees. Customers can switch between subscriptions or exchange for RedBalloon credit if they’re not satisfied with their purchase as part of the company’s Happiness Guarantee.
