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Ordergroove Grows New Business At A Record-High 152%, Ushering In The Next Era Of Profitable Growth For Brands And Retailers

ordergroove-grows-new-business-at-a-record-high-152%,-ushering-in-the-next-era-of-profitable-growth-for-brands-and-retailers
Ordergroove Grows New Business At A Record-High 152%, Ushering In The Next Era Of Profitable Growth For Brands And Retailers

A new wave of change is coming to commerce. Moving forward, the most successful brands will have one thing in common — they’ll be the ones pioneering retail’s recurring revenue revolution with world class subscriber experiences.

Ordergroove is purpose-built for this moment in time, and leading brands and retailers have taken notice.

With record-setting 152% new business growth in 2023 — and Ordergroove now powering subscriptions for 11% of adult Americans — we’re proud to usher in this new era of profitable growth, built on recurring revenue.

The end of DTC’s “growth at all costs” era emphasizes profitability

Last year, VC funding dedicated to DTC eCommerce companies dropped 97% compared to its peak in 2021.

Now that the “growth at all costs” era is officially a thing of the past, profitable growth built on recurring revenue is what will define the future of DTC and retail — and to that end, more brands are doubling down on subscriptions.

The subscription market is expected to grow from $199.41B in 2023 to $330.58B in 2024, with a compounded annual growth rate of 65.8%. This creates an unprecedented opportunity for brands that fully embrace differentiated, seamless subscription experiences that provide a reliable, predictable cash flow.

Predictable cash flow means brands know exactly where sales will come from next month (and next quarter) with a reliable revenue stream. It makes for a better LTV:CAC ratio, improving the ROI of customer acquisition efforts thanks to longer retention periods. And a growing pool of repeat customers gives brands a captive audience to cross-sell and upsell over time, further improving LTV.

This is why leading brands and retailers are leveraging Ordergroove to automate their customers’ shopping experience.

Ordergroove is leading top brands into a profitable growth era, built on recurring revenue

In the year since our Series C $100M funding raise, Ordergroove not only renewed long-standing partners like GNC, but penned new partnerships with subscription giants like Dollar Shave Cluband ultimately grew new business bookings by a whopping 152%.

The reason for this influx of brands moving to Ordergroove?

Brands and retailers are eager to create more innovative subscriber experiences — which just isn’t possible with homegrown subscription software or SMB-oriented subscription apps.

Subscription giants unlock innovation by moving away from homegrown tech

Once upon a time, homegrown subscription technology was the only way a visionary brand could deliver a bespoke subscriber experience, complete with customizations more advanced than a simple subscription app would allow.

That’s why so many brands initially chose to take on the short and long-term investment of building and maintaining homegrown software to get their subscription experience off the ground — and eventually discovered that the real cost was future innovation.

Ranil Wiratunga, Chief Digital Officer & Global GM of DTC at Dollar Shave Club said it best: “We were spending about 40% of our existing resources on simply maintaining our subscription offerings. We wanted to push customer journeys and experiences into the future, but we didn’t have the manpower and the resources.”

Ordergroove has proven to be a reliable solution for merchants looking for the level of customization seen in homegrown tech — because Ordergroove delivers it in an easier-to-use package, designed for scale. We’ve been perfecting this specific technology for over a decade so merchants can reliably create any vision they have for their subscription experiences, at any scale, without the worry of maintenance or ongoing support.

In 2023, brands like Daily Harvest, Omaha Steaks, Sharkninja, and Trade Coffee left their homegrown tech behind to improve their speed of innovation and lower costs with Ordergroove.

Subscription apps can’t keep up with fast-growing brands

Like homegrown technology, subscription apps also limit innovation and hinder scale. The biggest reason that fast-growing brands can’t count on most subscription apps is that they’re built to be outgrown.

Their features are built for SMBs, instead of comprehensive and customizable solutions intended for scale. They slow brands down with inflexible systems and muddy reporting. And when freemium business models don’t offer technical or operational support, brands have to navigate these challenges and learn best practices alone.

Altogether, a cheap solution out-of-the-box can add up to higher costs (and lost revenue) down the line.

Emily McCracken, Senior Manager of eCommerce at La Colombe explained her personal experience: “With our last subscription provider, it never felt like there was a lot on the roadmap. With Ordergroove, there’s always something to look forward to, like prepaid or a new analytics feature. We’ve seen quite a few of these features roll out since we signed up, so we can’t wait to see what’s next.”

That’s why 2023 saw brands like Black Rifle Coffee Company, Scotts, and Snoopslimes are upgrading from subscription apps to Ordergroove to transform their subscriber experiences and grow recurring revenue.

Thanks to our tenured staff of subscription experts — and 42 new agency partners that are certified to implement Ordergroove’s technology — these brands are set up for recurring revenue success from the moment they migrate onto Ordergroove.

The recurring revenue ripple effect for brands using Ordergroove

Dollar Shave Club can attest to the growth potential that comes with upgrading homegrown subscription technology to Ordergroove’s recurring revenue solution.

Now that they’ve successfully migrated millions of subscribers to Ordergroove, they’re redeploying the 40% of their existing resources that were once used to maintain their homegrown subscription platform to new areas to unlock innovation and fuel growth.

And they’re not alone in their lightning fast success. Premium coffee roaster La Colombe’s unlocked 41% subscriber base growth and a 12% increase in average order value (AOV) in the first three months of switching to Ordergroove.

And for American meat delivery company, Good Ranchers, adopting Ordergroove led to 72% subscriber base growth, 227% more subscription orders, and a 142% increase in recurring subscription revenue.

Ordergroove: subscriptions for serious brands

The future of eCommerce belongs to the brands that lead the charge and embrace the recurring revenue revolution of retail — they’re the brands that will be the most resilient, future-facing, and profitable.

And just like their customers, they’ll have autonomy to not only thrive on their own terms — but they’ll be empowered to set a whole new bar.

To that end, Ordergroove is here to help. We’re committed to being first-to-market with thoughtfully-built recurring revenue experiences and technology that deliver unparalleled flexibility for brands and consumers alike.

The future of commerce waits for no one — reach out for more information to get in on the ground floor of the profitable growth era.

The post Ordergroove grows new business at a record-high 152%, ushering in the next era of profitable growth for brands and retailers appeared first on Ordergroove.

This article originally appeared on OrderGroove and is available here for further discovery.
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