Lowell Bieber, co-founder of the direct-to-consumer (D2C) charcuterie kit subscription box, shares: "I think people … maybe got used to habits that they had during the pandemic, like not going on big lavish trips or anything like that, but trying to keep some experiences close to home."
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GLOYears after the pandemic and mandated quaratine, customers still seek avenues to craft meaningful experiences within the confines of their homes, having become accustomed to these conveniences, suggests Platterful.
Lowell Bieber, co-founder of the direct-to-consumer (D2C) charcuterie kit subscription box, shared in an interview with PYMNTS that even amidst the current macroeconomic pressures, the brand’s clientele has remained resilient. This resilience can be attributed, in part, to behaviors cultivated during the initial stages of the pandemic. Bieber stated, “I think people … maybe got used to habits that they had during the pandemic, like not going on big lavish trips or anything like that, but trying to keep some experiences close to home.”
Bieber acknowledged that the brand’s subscription boxes (with a minimum cost of $75 for a one-time purchase) are “somewhat of a luxury item.” He highlighted that the company has chosen not to pass on inflationary costs to consumers, opting instead to absorb most of the impact. This decision has yielded positive outcomes, as Bieber expressed the company’s contentment with it.
In the face of cost pressures, most consumers persist in indulging themselves in such luxurious offerings. A study by PYMNTS titled “New Reality Check: The Paycheck-to-Paycheck Report – The Generational Deep Dive Edition,” conducted in collaboration with LendingClub, revealed that 63% of surveyed consumers had spent $100 or more on nonessential items or services in the preceding three months.
Platterful’s customer loyalty dynamic differs from that of less luxurious products, largely due to the company’s substantial revenue stemming from gifting. Even in this context, Bieber highlighted the range of gifting occasions for which consumers have chosen the brand as their go-to option. To foster loyalty, the company focuses on both its best and worst customer experiences.
Recently, an initiative was launched to pleasantly surprise customers situated at both ends of the satisfaction spectrum. Bieber explained, “If you have a great experience, … we’re going to double down on that great experience and send you out a $100 gift card to Platterful or even to a local restaurant. If you have a poor experience, same thing. We’ll see what’s in your area, or maybe you mentioned that you’re a fan of a certain sports team. We’ll get you tickets to an upcoming game. Really trying to treat our customers like friends and family.”
For merchants, investing in relationships with already devoted subscribers can prove pivotal for success. A study by PYMNTS titled “Decision Guide – How Retail Subscription Merchants Can Win and Retain High LTV Customers,” in collaboration with sticky.io, unveiled that the most loyal 30% of subscribers drive 79% of revenue for retail subscription merchants.
Anticipating the future, Bieber envisions a role for artificial intelligence (AI) in this process, enabling the company to increasingly employ advanced language models for customer message analysis. He shared, “I think people still want to have that human connection, … but the AI can help to be that first response and give it a go, and then the human can … come in and give a more curated and helpful response. Really excited about what the future looks like.”
Source: PYMNTS
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