What parameters determine profitability of the auto restock program?…
What parameters determine profitability of the auto restock program?
Product margin rate
Average duration of subscription
Share of wallet
Monthly recurring revenue
Hyp- Products which are high in demand in the market are more likely to be auto restocked than other products
What category of products were auto restocked the most?
What were their product characteristics?
Were these products behaving similarly in the past?
Were these products being promoted externally at the time of subscription?
Are these high in demand products?
Effect on other programs
Hyp- Revenues will continue to grow if auto restock does not cannabilize other programs
Has there been significant change in trends for other delivery methods?
Hyp- Stemming attrition will increase profitability of the program
What is the attrition rate of subscribed customers?
Did this program manage to retain any customer?
What is the average duration of subscription?
Nature of these consumers
Hyp- If new customers are enrolling into the auto restock program, profitability is more likely to increase
What % of customers were new customers?
What was the customer cycle of majority of auto restock customers?
Are they price sensitive customers?
Are they small, mid size or large businesses?
Are subscriptions being subscribed by similar natured consumers?
What was there preferred way of delivery before auto restock?
What % of existing customers subscribed to auto restock?
Hyp- If consumer traffic is as a result of marketing efforts, investment in various channels is likely to increase profitability of the program
What was the source of traffic for auto restock transactions?
Were the products that were auto restocked part of offers/promotions?
Did subscriptions rise/fall as a result of marketing efforts?
Nature of products being offered for subscription
Hyp- If auto restock is implemented only for products which are performing relatively well, profitability is most likely to increase
Were products with this feature observe any lift when subscribed compared to when not subscribed?
Which category of products had most of the auto restocked products in?
What was the nature of these products?
Were they top performing SKU's ?
Hyp- Positive consumer behaviour is likely to increase profitability of the program
How many products on an average have consumers chosen to auto restock?
How much did it increase/decrease over time?
How often was it chosen to be restocked?
Did these customers have repeat visits after subscribing?
Were they buying these products regularly in the past?
Hyp- Understanding what other products these consumers can increase profitability of auto restock
What other products are the consumers buying?
Is there a lot of incentive involve