Subscription Box Answers

The Secret to Making Your Subscription Box Stand Out (Product Differentiation)

• Liam Brennan

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In today’s episode of Subscription Box Answers, we’re diving into one of the most crucial topics for subscription box owners — product differentiation.

If you think you can just put a random collection of products in a box and send it out… think again.

That might have worked back in 2018, but the subscription box market has evolved.

To succeed today, you need to make your box stand out.

Because if you don’t, you’ll be forced into a brutal price war — a race to the bottom.

That’s where product differentiation comes in.

When you get this right, you can stand out in the marketplace, attract loyal subscribers, and build a business that lasts.

In this episode, I’ll explain exactly how to do it .

Speaker 1:

Welcome to Subscription Box Answers with your host, liam Brennan. You're no rubbish, no crap. Straight to the point podcast with real, actionable tips, real strategies and insights from the industry which will help you start and grow your own successful subscription box business. You ask the questions, you ask the questions, you ask the questions. Liam gives the answers. It's as simple as that.

Speaker 2:

Welcome back to a brand new episode of Subscription Box Answers. As always, I hope you're having a really good day Now. On today's episode, we are going to cover something that could genuinely change the direction of your business. I'm talking about product differentiation, but not just in the traditional sense. I'm talking about how to make your box feel like a need, not just a nice extra, because here's the truth, and you really need to think about this and answer the question as honestly as possible If your box disappeared tomorrow as possible, okay, if your box disappeared tomorrow, would anyone really care seriously? Would they miss it? Or would they just say, ah, that was nice while it lasted and forget about your company after two days? That's the difference between being a nice to have and a need to have, and in a market where budgets are tight and a good percentage of people are cutting back on anything that feels like a luxury, this matters more than ever. So let's get into it right.

Speaker 2:

Why does product differentiation matter? Now, you may have heard the phrase. It's literally everywhere and it's very true different is better than better, and the reason why this is true is, say, if somebody is comparing your box to five other boxes that look and feel the same. What's going to happen? Well, they are going to pick the cheapest option and once price becomes the only differentiator, trust me, you're in big, big trouble. If price is the only lever you can pull, you're in a race to the bottom and eventually you will run out of road, so it's a bad place to be. Look, I have seen this so many times over the years. So many boxes fail, not because they're bad, not because they're poorly marketed even though that is actually a reason why a lot of boxes do fail but another big reason is they're forgettable. They're sitting in a nice to have category where price is the only differentiator, and it's a very dangerous place to be. Or a up-and-coming subscription box owner, because I know a lot of people listen to this podcast who are getting ready to launch, and if you are in that boat, this is the perfect time to be thinking about these things. But your job is to make sure your box lands in the. I can't live without this category, and that starts by getting crystal clear on what makes you different in a way that matters to your customer.

Speaker 2:

So let's talk about it. How can you actually differentiate on things that aren't involving price? Number one your niche right. You need to niche down hard. A lot of people think they're niched, but they're not. They may have been niched a few years ago. The market is always evolving and I was only actually thinking about this the other day.

Speaker 2:

I was thinking, if I was to set up a subscription box business in 2025, what would I do? And the first thing came to the niche. I would find a hungry subsection of the market who are really passionate about what I am going to sell them and I would niche down really hard. Okay, because I've seen this myself. I'm not going to name the boxes or anything like that, but I have seen in the last few years the companies that are really niched down hard like I'm talking about a really tight niche, okay and they're delivering a great product and service. They aren't really worrying about price sensitivity. If you have a mass market box and your potential customers can go different places to buy what you offer, you're sitting in a price sensitive section of the market and it can be tough where, if you go really tight with your niche, it's not anywhere near as price sensitive. I actually had a lady reach out to me a few weeks ago and we were speaking about a new subscription box business she is launching and I'm not getting into exactly what it is, but it's very niched down, okay. And I said the exact same thing to her. I said, if I was setting up a subscription box business in 2025. I obviously wouldn't do exactly what you're doing, but I will be looking to niche down just as tight as you. It makes a big difference, okay.

Speaker 2:

Now, a example I can give you is my own company, busterbox. In a way, it is a mass market product, but we switch it up okay. How we differentiate it is well, one of the ways we go very hard on making every box fun, playful and high energy. Okay, it's not just a generic experience. It's a box designed for the type of owner who literally lives for spoiling their dog. I've covered it before on previous episodes, but that emotion drives everything. That's why they buy from us, and we obviously wrap up our boxes in teams, okay, different teams. So that's the way we differentiate things, and they're not just like generic teams, like of just random products from other companies, and we call it a team. A lot of these are our own products and to get a team like the ones in our boxes, the customers can't just go to the pet shop. Okay, that's one of the ways we differentiate ourselves. Now, the team route is a way a lot of subscription boxes try to build a moat and differentiate themselves and it can work really well.

Speaker 2:

But what we have found makes a gigantic difference is when the products are actually your own brand. Now, if you're only starting out and depending on your niche, that may not be possible and that's completely fine. But if you're going a while and it is possible that should be something you should consider. And this is for a couple of different reasons. Obviously, if you're producing your own products for these teams and they're all your own brand, well then yeah, they can't go to the shop, the pet shop, to buy them. And, number two, it's down to price sensitivity, especially in a tougher economy. If you're putting other people's products in your box I'll go with a dog box for an example, because obviously that's my business.

Speaker 2:

But if we're putting other people's products in our box products in our box what we found is a percentage of people will google the price of those products and if they feel like they can get a better deal elsewhere, that's going to hurt your retention. If they're your own products. Well then, that's completely different because you can set the price. You may have a store, a standalone online store, where you can price your products in a way where it's actually a really good deal. If people sign up to your box, you can make your standalone products quite expensive. And people check it and they're like, oh well, that's amazing, I'm going to stay signed up to this subscription because I'm actually saving money. If I had to buy these products, it would work out way more expensive. That can have a big impact on how your box is viewed by your customers. It can really drive up that perceived value. And, on the flip side, if you're just using other people's products and they do a quick search on amazon and they're like, hey, I actually would save money by cancelling this subscription and buying the products directly from amazon, how's that going to look? Completely different situation, and these are the things you need to be thinking of Now.

Speaker 2:

I'm going to give you an example of this in a completely different kind of business. The platform we obviously use to run our business is Subway, and they're competing with some pretty big players in the space and a way that they have carved out a section of the market and are doing really well is they've positioned themselves as a subscription first platform. That's their main focus and they do a really good job at doing that at providing subscription companies all the tools they need to build really successful subscription boxes. But yeah, just wanted to share that example of how another company in a different Just wanted to share that example of how another company in a different industry is doing a really good job at separating themselves.

Speaker 2:

Now we touched on the product side of things having your own products and wrapping them in teams but there's another way to differentiate yourself. I'm talking about something a bit different here self. I'm talking about something a bit different here. This could be a unique experience added to your box a members-only podcast, a members-only community, something which is unique to what you do, and they have to sign up to get it. But here is something you need to consider when thinking about this.

Speaker 2:

This is a mistake that people make. Right, they throw in something extra and they're like, okay, that's fine, that's how we differentiate our box, but the thing they throw in extra is actually rubbish and nobody cares about it. Okay, and you need to be honest with yourself when it comes to this, if you're going to throw in something extra. It has to be something that they care about and they value. If they don't, you're just creating more work for yourself and it won't do anything to your turn. Okay, let's take a private community, for example. Okay, and like, one of your big selling points is oh, if you sign up, you get access to this private community. But the private community is like a ghost town and it has no engagement. Is that really a benefit? Is that a way you can differentiate yourself? No, it's not. What if you created a members-only podcast and nobody listened to it? Well, you're just creating more work for yourself.

Speaker 2:

Now, again, I'll revert to my business and I'll explain what we do. So we have a really powerful extra bonus when somebody signs up to BusterBox, and that is 24-7 video vet access. It's a massive benefit of being a BusterBox member. They can literally speak to a vet whenever they need to about their dog, saving them a lot of time and money and giving them peace of mind. It's massive. And even if somebody has had enough of the box, that alone justifies the subscription box price. It will really help you.

Speaker 2:

Now, another thing we do which really helps us move our box from the nice to have category to the need to have category is down to our offer. So a lot of the offers we're doing nowadays, like a free bed when they sign up, is something which obviously has a high perceived value, but it's something that the customer needs for their dog. Eventually you will need a new bed for your dog. It can happen pretty regularly. Whereas a few years ago we were running a lot of gimmick offers, they were just like really cool products and stuff and unique products, but they weren't necessarily things the customer needed to have and they used to work really well. Nowadays, the offers which are need to have for the customer they're actually useful, tend to perform a lot better, and you should be thinking the same in your business. In your subscription box business. Can you come up with free gifts that are actually really useful and something the customer uses on a regular basis?

Speaker 2:

Now, another thing you can do which will make a big difference is if your box actually solves a real problem, okay, if it fixes a real pain point. Now, that isn't always possible for a lot of boxes. Okay. A lot of subscription boxes are positioned in a way where a customer gets to experience new products and they don't necessarily solve a problem. But if your box can solve a problem or you reposition it in a direction where it's now solving a problem, yeah, that's going to make a big difference. If your box makes your customer's life easier, better, less stressful, or it makes them happier, it's going to be harder for them to cancel.

Speaker 2:

Now. Another way which makes a massive difference is building a habit or dependency. So if you can do this, your retention is going to go through the roof when your box becomes part of their routine. And the example I'm going to cover, because I'm in it all the time, is dog food. Okay, if you have a dog food subscription and it agrees with the dog, it helps their health, it arrives exactly when you need it to arrive. It's going to be very hard for a customer to cancel that. The same with a razor, say. If you're signed up to Harry's and now they're a big razor subscription and you get that for a price that works for you and it's worked into your routine because you obviously regularly shave, it's going to be harder for a customer to cancel that subscription compared to just a random box of random products. So if you can plug your subscription box into their regular life rhythm, it will keep them around for much longer.

Speaker 2:

And then, finally, we do a lot of this in BusterBox emotion. Finally, we do a lot of this in BusterBox Emotion. I covered this in a previous episode Emotional triggers that make people buy. Highly recommend going back and listening to that episode if you haven't heard it already, because it will cover this in more detail. If your box makes people laugh, cry, feel understood, feel pampered, feel like a better parent, feel as if they're spoiling their dog, who gives them so much, you're going to keep those people around for a lot longer, and it's a way to differentiate your box.

Speaker 2:

Now here's a final thought. Okay, if someone said to you, I love your box, but I need to cancel to save money, would you say back yeah, I completely understand, and you cancel it? Or would you be able to say back, no problem. But let's be honest, what are you replacing with it? Because this box helps you? Blah, blah, blah, blah, blah. Your box should feel defensible, okay, it should feel essential, and that starts by differentiating in a way that actually matters. Okay, I hope you found that episode helpful.

Speaker 2:

Just as a reminder, my brand new subscription box challenge. It's completely free. It. It's a four day challenge. It's going live on the 19th of May. If you are thinking about launching a box, or if you're stuck in your existing box and you don't know how to grow it or move forward, I highly recommend joining the challenge. It's completely free, goes on for four days. You can sign up now at subscriptionboxchallengecom starts on the 19th of may. Now we'll be back next week at the exact same time and, as always, if you have a question you want answered on the show, head over to subscriptionboxresourcescom, join the free Facebook group and post your question there. Thanks very much and chat to you next week. Bye, bye.