Target’s Foray Into Subscriptions Begs The Question: What About Your Business?

Posted on April 18, 2014. Filed under: Creative Marketing, Public Relations, Public relations practices, Retail, Small Business in Minnesota | Tags: , , , , , , , , |

Probably no Twin Cities-based company is more closely watched by business locals than Target Corporation. Not that the Twin Cities is a one-horse town, corporately speaking — far from it! Rather, Target is the odds-on favorite in a multi-horse lineup of big hitters. So it’s interesting to us locally — and surely to many marketers nationally as well — when Target announces that it is pursuing more online sales by bolstering its subscription business. See Target Expands Online Subscription Sales.

Subscriptions Can Be A Sweet Addition To A Business

Subscription sales by major marketers is a hot topic at present. General Mills, for example, is building out a subscription business with a line of unique culinary treats — a healthy sweet treat a day keeps the dogs of want away, might be the underlying idea there.

Target’s idea is to motivate consumers and businesses alike to sign up for regular shipments of everyday products such as washing detergents, paper goods, cleaning products — the mundane stuff that no home or business can afford to be without. Purchase online, add them to your account, specify delivery intervals, and voila – your life simplified. It’s a good idea, not new, but good all the same. Many, many companies pursue a similar strategy of course.

But the question is, why aren’t even more companies doing it? Specifically, small to medium sized businesses — and non-profits too — with both products and services to sell? Why couldn’t a hair stylist offer to cut and beautify hair on a subscription basis – 12 sessions per year, sign on for the subscription to the service and get a 10% discount? A florist could initiate a bouquet-of-the-month club for consumers and businesses alike. Specialty food businesses are obviously ideal for this type of business development model — especially if they’re willing and able to partner with other food products marketers to provide customized food baskets.

A Little Creative Thought Can Reveal A Powerful New Marketing Niche

Even professional services companies could benefit from the subscription approach to client retention. A competitive-landscape-analysis-of-the-month club for clients of a public relations or advertising firm, for example. Or a monthly webinar providing an in-depth, value-added look at a topic of deep relevance to clients. This kind of approach could also benefit law firms, accounting firms, non-profits — the potential is limitless.

The moral of the story is, if it’s good enough for the likes of a mass merchandising giant like Target, it’s probably good enough for your business too.

Willing To Help

If you’d like to discuss such issues with an experienced marketing industry pro, feel free to get in touch with me. No fee for a brainstorming sounding out of ideas here.

Now then, Target as noted is not the only major retailer ramping up online sales. Home Depot is, by report of the Wall Street Journal, reducing its new-store openings drastically while promoting much more aggressively it’s online sales site. That’s a huge switch for the retailer, whose main growth strategy in the past has been based on new store growth. But the bricks-and-mortar segment of the business is over-crowded with competition, say Home Depot executives. And even the vastness of the Home Depot stores can only contain about 35,000 products versus the 600,000 offered on the retailer’s website.

Home Depot makes it easy for consumers to order online — and pickup goods at a local Home Depot bricks-and-mortar location. That’s called killing two birds, one virtual, one physically present, with one giant marketing stone.

 

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