Digital Smiles
Needing to rapidly expand subscription capacity, Dollar Shave Club pulled off an impressive feat this week: migrating from a homegrown e-commerce system to a new one in just three days. With a 99.99% success rate and no downtime, the direct-to-consumer (DTC) brand moved over one million subscribers from its original system, to third-party platforms for subscription management, customer support and marketing automation. Shopify Plus is the core of the new stack, being used to power the company’s website and product catalog, while Ordergroove, Gorgias and Klaviyo make up the other components.
Maintaining and growing its seven-figure subscriber base was of utmost importance for Dollar Shave Club. Ordergroove was the platform of choice to manage the subscriber interface and recurring payments, and works closely with Shopify Plus to keep the customer experience seamless. Pricing for Ordergroove varies based on a company’s subscription revenue, with no hidden transaction fees, and is also used by The Honest Company and Peet’s Coffee, as well as larger retailers like L’Oréal and Petsmart.
The migration was set in motion about a year prior to its completion, when Dollar Shave Club recognized that the maintenance of their own platform was taking up too much of their resources and preventing them from innovating. The company worked with iamota to implement Ordergroove, Shopify and Klaviyo, and with the new technology, they now have access to more data and automation to create a more personalised experience for their members. AI models are being used to predict consumer buying behaviour, and the team is looking forward to exploring more AI tools in the future.
DTC brands have been using the subscription model to disrupt traditional shopping patterns for everyday CPG products, and now traditional grocery and drug store categories are also using subscriptions to increase sales. Brands and retailers are working more closely together through retail media networks, and those that used homegrown solutions are now looking at third-party solutions to increase digital sales and subscriptions.
Originally reported by Martech: https://martech.org/why-dollar-shave-club-cut-its-homegrown-ecommerce-system/
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