Inside the powerful technology now powering subscriptions for 11% of adults in America

With subscription businesses growing 3.7 times faster than the S&P 500 over the last 11 years — and 53% of consumers around the world predicted to have at least one active retail subscription by 2025 — it’s clear that subscriptions are consumers’ go-to for getting the frictionless experiences they want.

The popularity of subscriptions is here to stay, but it’s subscriptions powered by Ordergroove that are particularly on the rise this year, given our 2023 merchant success and subscription growth numbers.

Today, we’re unpacking the reasons behind Ordergroove’s popularity with consumers and how our customers are growing recurring revenue to fuel profitable growth.

How Ordergroove’s approach to recurring revenue differs from the subscription app market

By their very nature, retail subscriptions are designed to remove the friction that comes with running out of a product, tracking it down online, and manually re-entering credit card info. But while consumers like the idea of the convenience and time savings that come with subscriptions, they also have high expectations for the experience.

Whether it’s the worry of being tricked into subscribing to products they don’t need — or not having the power to manage or update their orders as needs change — consumers want to know they’re in the driver’s seat of their subscription experience. And they deserve to be able manage subscriptions as easily and seamlessly.

That’s why Ordergroove exists. We believe that the power of automated, recurring commerce, begins with empowering consumers with delightful, frictionless experiences

That’s why 11% of adult Americans have a subscription powered by Ordergroove.

And even though the economic outlook will always be full of variables, top brands and retailers are proving everyday that a frictionless subscriber experience built with Ordergroove is the key to making recurring revenue the constant — and the key that unlocks profitable growth.

Better subscriber experiences deliver higher ROI

The ability to deliver new and improved subscriber experiences is the reason why brands and retailers using Ordergroove see more recurring revenue. It’s just the beginning of the virtuous cycle.

Subscribers spend more as the experience with a brand gets better, making it possible for our merchants to invest even more in their subscription experiences.

And as a direct result of that virtuous cycle, Ordergroove has seen a gross merchandise value (GMV) compounded annual growth rate of 55% over the last five years, processing billions in subscription sales from leading brands like Petsmart and Good Ranchers.

The launch of new innovative subscriber experiences like prepaid subscriptions and subscription bundles, coupled with robust recovery analytics, has led to double the number of subscriptions managed since 2022 — and now, Ordergroove powers omnichannel subscription experiences in more than 10,000 retail stores.

These innovations and changes within the subscription landscape are setting a new bar for subscribers, and widening the delta between the brands who get it right and those who don’t.

For those getting it right, subscription innovation is paying off with big improvements in GMV. Ordergroove’s Prepaid Bundles feature is responsible for a whopping 173% lift in customer spend — while features like Instant Upsell and Advanced Promotions are responsible for 50-60% and 10-40% higher GMV, respectively.

Ordergroove subscriptions keep up with any vision. Any volume. Anywhere.

It’s safe to say that we at Ordergroove — and the merchants who entrust us with their subscription experiences — have successfully bucked a trend of those predicting a 2023 slump in eCommerce subscriptions.

And we did it with 99.999% uptime. Even on peak days when Ordergroove saw 15 times the usual traffic, there was no impact on platform uptime or response time.

That level of scale and security is an essential part of our platform — and powerhouse brands like GNC and Tractor Supply Co. renewing their longstanding partnerships with us are testament that Ordergroove is built for so much more

It’s for good reason that brands like GNC haven’t hesitated to sign on for four more years: Ordergroove’s integrated and omnichannel subscription experience capabilities and memberships — along with predictive analytics, personalized product recommendations, and subscriber management via Alexa and SMS — are critical for driving their profitable, recurring revenue.

Our CEO, Greg Alvo, says it best — “In today’s market and in the years ahead, prioritizing value over volume is critical. Following a record-breaking year where we empowered merchants to achieve profitable, subscription-driven recurring revenue growth, we’re ramping up our platform efforts.”

And while other subscription technology is built to be outgrown, we’re built to scale — “With strategic investments in our platform and technology partnerships, we’re arming retailers with seamless technology and data-driven insights that are actionable. This unlocks opportunities for them to expand average order values without compromising retention. We’re dedicated to making profitable relationships the cornerstone of this next era of commerce, underscoring merchants’ success.”

So, growing merchants, take note.

With the US Census Bureau’s 2024 eCommerce retail report showing continuous YoY growth — and growing demand for eCommerce brands to turn on a dime to meet shifting consumer expectations — Ordergroove is a subscription solution that fast-growing brands can adopt without ever slowing down.

So, let’s chat. Reach out for more information if you’re looking to ride the wave of recurring revenue straight to profitable growth.

Read more

More revenue. Better customer relationships.

Get started with Ordergroove today.