|By Business Wire||
|December 4, 2013 08:32 AM EST||
The most powerful force in e-commerce—the subscription—has arrived at the grocery store.
Aisle50 (Aisle50.com), the innovative online technology platform that delivers grocery discounts on major and local brands to consumers, has teamed up with premium brands such as Clorox, Starbucks, Smuckers and Red Bull to offer consumers recurring discounts on the products they buy most often.
The move gives Aisle50’s retailer partners, which include Raley’s, Shop ‘n Save and Homeland Stores among others, an e-commerce platform that’s unique within the world of groceries.
How it works: Consumers sign up for grocery subscriptions at 15% to 40% off of normal prices at Aisle50.com or an Aisle50-powered retailer white-label site. Every month, the consumer’s credit card is charged and their loyalty account is loaded with their subscription. For example, consumers can subscribe to 12-packs of Red Bull at Raley’s at a 24% discount from normal prices. Shoppers receive reminder emails when their subscription reloads and can cancel their subscription anytime by logging into Aisle50. To redeem, shoppers simply grab the subscribed-to product at the store; when they check out, it comes completely off of the bill.
The advantages: Everybody wins. For CPGs like Clorox, subscriptions with Aisle50 allow the manufacturer to lock up consumers for long periods without ceding anything to competitors; with a subscription, shoppers will no longer brand-hop according to periodic discounting.
For retailers, subscriptions drive the two most important things in the industry:
1. Extra trips—up to an additional 20% from the same consumers.
2. Bigger baskets—shoppers redeeming Aisle50 offers at the store spend 31% more on their baskets than do the same consumers without an Aisle50 offer to redeem.
For consumers, the benefits are clear: great brands and guaranteed lower prices that are locked-in. No coupon fussing or sale-watching necessary.
“This is the biggest thing to hit brick and mortar grocery stores since the price scanner,” said Christopher Steiner, Aisle50 cofounder. “We’re helping our retail partners compete in a world where e-commerce and automation decide more and more of our consumption habits.”
“By offering our consumers subscriptions on the things they buy most often, we’re making Raley’s an even more rewarding place to shop,” said Tom Hutchison, Director of CRM Marketing & Analytics for Raley’s. “And by integrating these subscriptions with our existing Something Extra program, we’re ensuring that Raley’s grows its web and mobile mindshare amongst Northern California shoppers.”
Aisle50 Subscriptions for Raley’s can be seen at: https://raleys.aisle50.com/subscriptions
Aisle50 was founded by Steiner and Riley Scott in 2011 with the goal of sourcing exclusive content for retailers in the world of consumer packaged goods, a $2 trillion business in the United States. With capital raised from Silicon Valley’s Y Combinator, August Capital, Origin Ventures, New World Ventures and others, Steiner and Scott have built Aisle50 into a marketing lever that drives incremental volume and repeat buying.
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