Survey of Retailers Reveals Mainstream Adoption of Recurring Revenue Programs in 2019

According to a new study commissioned by Ordergroove, the leader in
Relationship Commerce, retailers view converting one-and-done shoppers
into recurring customers as very important for their business and expect
that recurring revenue programs will be a significant driver of revenue
for their organizations in 2019. Findings from the study, “Retail 2019:
The Year of the Recurring Revenue Model” will be presented at National
Retail Federation (NRF) 2019: Retail’s Big Show, to be held in New York
City on January 13-15, 2019.

This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20190107005380/en/

Retail 2019: The Year of the Recurring Revenue Model (Graphic: Business Wire)

Recurring revenue programs - such as subscriptions, reordering, and
membership programs - enable brands to transform shopping experiences
from one-time consumer transactions to frictionless, recurring
relationships that drive predictable, profitable revenue streams.

Key findings from the study, which surveyed retail leaders representing
companies with an annual revenue exceeding $100 million, include:

• 83 percent of retail leaders surveyed agree that converting
  one-and-done buyers into recurring customers is very important for
  their overall retail strategy.
• 54 percent expect significant growth in revenue in 2019 and beyond
  from recurring customer purchases.
• Today, 65 percent of respondents offer subscription programs;
  additional 22 percent are thinking of adding them in 2019.

Relationship Commerce Also Equates to Value for Consumers

Retailers are experiencing a clear correlation between recurring
customer purchases and customer satisfaction, with 86 percent of
respondents indicating that their subscription customers are more
satisfied than their non-subscription customers. Additionally, more than
half state their overall Net Promoter Score (NPS) has increased since
launching subscription offerings.

“In today’s on-demand world, consumers have more choices than ever and
are choosing those retailers and brands who make their lives’ easier,”
said Greg Alvo, CEO, Ordergroove. “Retailers who are not investing in
frictionless relationship commerce programs are merely acquiring
customers and absorbing the Cost of Customer Acquisition (CAC), only to
lose profitability and Lifetime Value (LTV) to Amazon. Amazon’s
investments in programs like Prime for memberships, Subscribe & Save for
subscriptions, Dash for IoT reordering and Alexa for voice reordering
are all part of a master plan to build a recurring revenue business
centered around the highest level of consumer convenience.”

Alvo continued, “It’s clear from this study that retailers are
responding with their own recurring revenue programs and are putting a
relationship commerce strategy in place, elevating recurring revenue
programs from a sideline to a business imperative.”

To learn more about the study, download the full report: https://www.ordergroove.com/2019_survey_download
and view an infographic of the findings here.

Results of the study will be highlighted at the National Retail
Federation (NRF) 2019: Retail’s Big Show during the Big Ideas session: “The
Big Shift - Moving from transactional to relationship-driven commerce,”
on Tuesday, January 15, 2019 at 2:45 p.m. on Stage 6, EXPO Hall, Level
3. The session will feature Ordergroove CEO Greg Alvo and Colin Watts,
Consultant and former CEO of The Vitamin Shoppe. Ordergroove will be at
Booth 4364 during NRF.

The survey was conducted by NAPCO Research in November 2018 among close
to 300 retailers. Results of any sample are subject to sampling
variation.

About Ordergroove

Ordergroove helps brands and omnichannel retailers practice and achieve
Relationship Commerce - shifting consumer interactions from one-and-done
transactions to ongoing, highly profitable relationships. The company's
unique combination of powerful technology, machine learning and
analytics, and unmatched consumer expertise helps top retailers and
brands like Walmart, PetSmart, The Vitamin Shoppe, L'Oréal, Nestlé and
others transform their retail experiences across every channel and
thrive within the constantly shifting retail landscape. Ordergroove is
headquartered in New York, NY and has raised $40 million in investment
funding from institutional investors. For information visit www.ordergroove.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190107005380/en/