"Subscribe and Save" is an e-commerce tactic commonly used by online businesses to encourage customers to sign up for recurring product subscriptions. L’Occitane en Provence, commonly known as L’Occitane is a French luxury retailer of body, face, hair, fragrances, and home products based in Manosque, France. Here's how they make use of the “Subscribe and save” tactic:
L’Occitane has an Auto-Replenishment program that lets customers have their products delivered at the frequency of their choice. On top of that, L’Occitane offers a 10% discount off subscribed products and FREE shipping with every recurring order after the first order. By offering a 10% discount and free shipping for every recurring orders, it increases Customer Lifetime Value (LTV) and Average Order Value (AOV) as customers would be more encouraged to subscribe to the program in order to enjoy these benefits.
Overall, this tactic is beneficial for both customers and business. Customers enjoy convenience, cost savings, and product consistency - they will never have to worry about running out or having to make trips down to the store, whilst enjoying savings which overtime can add up. And aside from the increased Customer LTV and AOV, businesses will benefit from customer loyalty, reduced Customer Acquisition Costs (CAC), and enhanced data collection - as these customers have already committed to a purchase.