The Vitamin Shoppe has teamed up with OrderGroove to launch a subscription renewal program for its customers.
One of the first traditional retailers to use this technology, the subscription is generated at the point of sales. Through OrderGroove's platform, consumers can opt-in and then manage their subscriptions online or through the mobile app.
Called "relationship commerce," this strategy is meant to create loyalty rather than single transactions. The program is available in 770 stores and online.
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In 2017, OrderGroove launched SPARK in all of The Vitamin Shoppe's brick-and-mortar stores, so that customers could opt-in and manage their subscriptions across all channels, whether in-store, online, via SMS or through their mobile app.
"Subscription programs have been one of the fastest-growing segments of commerce in 2015, 2016 and 2017 and a true Relationship Commerce pillar, but few have brought those programs to retail stores, where close to 90% of sales still happen," Greg Alvo, CEO of OrderGroove told FierceRetail. "Enrolling customers at the POS is a transformational omnichannel retail experience that all brick and mortar retailers should be sprinting toward—not only for retaining market share but for expanding their share."
Using the technology, The Vitamin Shoppe can sign consumers up for subscriptions at in any of their 770 stores, via POS system. Consumers can also enroll via the VShoppe mobile app and receive tailored offers. Plus, users can manage their subscription both online and via mobile.
So why did The Vitamin Shoppe originally seek out help from OrderGroove?
"There’s a lot of talk about disruption in the retail industry, but very few stand out as examples of retailers taking bold steps to mitigate this disruption," Alvo said. "The Vitamin Shoppe recognizes that consumer expectations have completely changed over the last few years, and so they’ve shifted from a product-centric experience to one that’s customer-centric. They’re shifting their business from one-and-done transactions to long term relationships with customers, which is why we began working together. We helped them implement their highly successful subscription program that’s activated at the POS and capitalizes on that critical experiential moment with the store associate."
Alvo explains that by implementing Relationship Commerce, OrderGroove is helping The Vitamin Shoppe become indispensable to their customers' lives as they reach toward their individual health and wellness goals.
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Moving forward, Alvo says that with their subscription program already doing extremely well, The Vitamin Shoppe is poised to dramatically increase customer lifetime value.
"Anything they and other retailers can do to shift consumers from one-and-done transactions to long term relationships, anticipating their customers’ needs, can't help but make a significant impact on the top line and the bottom line," he added.