How Consumer Habits Influence Purchasing Decisions

Sep 10, 2024

In this insightful discussion, Ron Shah, CEO of Obvi, and Jen Gray, SVP of Marketing at Recharge, explore how Millennial and Gen Z behaviors shape purchasing decisions. They delve into the significance of subscription models, emphasizing their role in driving revenue and customer loyalty. The duo highlights the 'routine economy' and how brands can integrate convenience and variety to cater to modern consumer lifestyles. They also discuss tailored marketing strategies for distinct generational preferences, pinpointing the need for brands to adapt for lasting engagement.

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Intro

00:00 • 3min

Mastering Subscription Models

02:58 • 6min

Strategies for Customer Retention in Subscription Models

09:09 • 3min

The Power of Routines in Consumer Behavior

12:09 • 4min

The Impact of Personal Routines on Consumer Behavior

16:01 • 4min

Navigating Consumer Generations: Millennials vs. Gen Z

19:36 • 14min

Maximizing Subscription Success

33:17 • 5min

Engaging Customers: Strategies for Retention

38:17 • 9min

Exciting Competition to Boost Subscription Growth

47:27 • 2min

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In this first episode of the Tomorrow Brand podcast, Ron Shah, CEO of Obvi, and Jen Gray, SVP of Marketing at Recharge, delve into the evolving consumer landscape, focusing on the role of subscriptions in building the brands of tomorrow. They discuss the impact of Millennial and Gen Z expectations, the importance of routine, and strategies for brands to adapt and thrive in the “routine economy.”

🌎 Subscriptions are no longer just about convenience, but also about providing value and building community. Brands need to consider the entire subscription life cycle and how it can elevate the consumer experience.

📈 Investing in subscription acquisition is worth it, despite higher upfront costs, because of the higher LTV and easier retention compared to one-time purchases.

🤸‍♀️ Gen Z values variety and niche offerings, unlike Millennials who prioritize consistency and brand loyalty. Brands must adapt to this changing expectation by diversifying their product lines and creating moments of delight.

🎉 The “routine economy” is the next level of economic value, where brands must become integral parts of a consumer’s daily life.

🚀 Recharge is launching the “Tomorrow Brand Challenge” with almost a million dollars in prizes to encourage brands to innovate and grow their subscription programs.

0:00 - Intro.

1:26 - Importance of creating a Good prouduct.

2:00 - Embedding subscription thinking into product development.

4:09 - Prioritizing recurring business for long-term success.

5:02 - Subscriptions drive value and customer loyalty.

6:05 - Subscribers' increased LTV.

8:06 - Understanding metrics that matter.

10:00 - LTV is essential for subscription success.

13:17 - Powering routines through subscriptions.

14:49 - Understanding consumer behavior and priorities.

24:24 - Gen Z's consumer mindset.

25:04 - Options and experiences vs price.

26:00 - Decision overload on social media.

29:05 - Becoming part of consumers' routines.

32:02 - Positioning products based on consumer needs.

35:11 - Optimizing subscriptions for maximum customer retention.

38:04 - Testing different strategies for subscription success.

41:06 - Reward programs' impact on customer loyalty.

44:07 - Analyzing subscription programs for success.

46:43 - Tomorrow Brand Challenge.

Jen Gray - https://www.linkedin.com/in/jen-l-gray/

Recharge - https://x.com/RechargePayment