The Power Behind Subscription Services
& Why Subscribers Spend More

Increasing Online Spend Across Retail Customers



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50% of first-time shoppers start the transaction with a retailer. Only 34% return for their second purchase, the other 47% of the audience will continue their second transaction on a marketplace like Amazon. This presents a major challenge for the retail sector.

When this happens, all the up-front cost of customer acquisition (CAC) is borne by the retailer while all the long term customer value (LTV) that comes from the second and subsequent purchase behavior is lost.

Report Findings

  • Subscribers analyzed spent 60% or more than non-subscribers, and the spending difference was greatest in the low-spending segments.
  • Profitability originating from the LTV:CAC ratio is being impacted by customers repeating purchases in the marketplace.
  • Why Subscription-based incremental revenue growth is essential for the future of retail.

“KIND was seeking a partner who could deliver a best-in-class technology platform and also offered a depth of experience in creating deeper and frictionless relationships with consumers. With market-changing solutions that go the distance to predict a customer’s next moment of need, Ordergroove has demonstrated that they can be that strategic partner.”

Jarid Lukin, VP of eCommerce at KIND

“Kiehl’s is committed to building strong relationships with consumers by creating a frictionless experience both in stores and across all digital channels. With consumer expectations rapidly evolving and a retail environment that’s in a continuous state of disruption, having a comprehensive Relationship Commerce platform and partner like Ordergroove is essential for achieving our vision.”

Julia Mavrodin, eCommerce and Digital Marketing, Kiehl's

“The ability to offer an omnichannel subscription service through our partnership with Ordergroove has quickly gained traction and has been of tremendous value to our business. By offering customers an easy and flexible way to order and reorder their favorite products, whether in-store or online, we’re seeing enrollment in subscriptions rise and growth in recurring revenue.”

Tricia Toliver, Chief Financial Officer, GNC
illy name-ordergroove-salesforce-commerce-cloud-subscription

“With Ordergroove’s technology, data-driven insights and consumer expertise, we’re able to pursue a deeper and longer relationship with our customers, who love illy coffee and want to enjoy it at home. By offering the ‘illy a casa’ program at the optimal moment, we are making it easy and convenient to enjoy illy coffee through a premium subscription program. In return, we are experiencing increased customer satisfaction and lifetime value. It’s a win-win across the board.”

Andrea Vitale, illy

“After a thorough evaluation, we decided Ordergroove’s proven technology and team was the right fit for us to take our existing subscription programs to the next level. We are excited about the opportunity to leverage Ordergroove’s platform to further improve and expand our subscription offerings, and therefore, deliver an elevated and seamless experience for our customer which has always been our priority.”

Andy Molloy, Bare Escentuals