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Amazon, Freshly, and Xponential Fitness Prioritize Customer Experience With Exclusive Offerings

  • Nadine Ghiran & Sabrina Mullens - SUBTA
  • Apr 20, 2022
  • 6 minute read

It should come as no surprise that subscriptions prioritizing an exclusive customer experience will grow faster than those that don’t.

A quarter of e-commerce brands that offer additional perks in their offerings experience growth of 50% or more month to month, according to Bold Commerce. Success in the subscription space is now defined by the ability to tailor offerings to consumers’ ever-evolving needs. While there are several ways you can do this on your own, four subscription-based businesses recently launched initiatives that could inspire you and kickstart your growth.

  • Amazon released its first mobile games through its digital platform for children, Amazon Kids, and launched a new partnership with TuneIn, expanding the audio content available to Amazon Alexa users — all within a week.
  • Likewise, Freshly partnered with Pink Ribbon Girls to become its exclusive meal partner to support mothers with cancer.
  • Meanwhile, Xponential Fitness developed a new fitness streaming program to pivot toward a more accessible boutique fitness brand, say company executives.

Read on to learn how these subscriptions are creating a more valuable customer experience through partnerships and innovations.

Collaborations in the Industry

Partnerships and collaborations with other organizations allow subscription brands to join forces and go after the same target market, according to Dr. Eboni Bell, Founder of Dream Girl Box. “Collaborations mean greater impact, greater reach, and greater good.”

 

Freshly Becomes Exclusive Meal Partner for Nonprofit Organization

Freshly announced on April 18 that it is now the exclusive meal partner for Pink Ribbon Girls, a nonprofit organization that offers meals, housecleaning, transportation, and other services to breast and gynecological cancer patients. Pink Ribbon Girls is committed to send a free Freshly meal box to a mother battling cancer for every Freshly gift card purchased until May 8, otherwise known as Mother’s Day.

“We know the value our customers place on convenient, nutritious meals, and to be able to extend this solution to women struggling with cancer is both humbling and rewarding,” said Freshly CEO Anna Fabrega, in the press release.

Collaborations in the subscription space are an effective way to help you reach a larger audience and boost your revenue. The average revenue growth rate generated from partnerships reached 17.5% in 2019, according to Forrester Consulting. Furthermore, fifty-two percent of businesses reported that more than 20% of their revenue came from collaborations.

Your business has the potential to start a conversation that can lead to an amazing collaboration,said Bell.

Amazon’s New Partnership Creates Additional Value for Its Alexa Users

TuneIn, a live streaming audio service, announced on April 14 that it has released its premium audio content library to all Amazon Alexa users, including sports and ad-free news and music. TuneIn Premium will be free for three months, after which a $9.99 monthly fee will apply to access exclusive audio content, both on and off Alexa-enabled devices, according to the press release.

“We believe that this partnership will benefit both companies by offering a terrific listening experience, especially for Alexa users who crave more news and sports coverage,” a TuneIn representative told SUBTA.

TuneIn and Amazon’s partnership is intentionally being launched in the early days of the 2022 Major League Baseball (MLB) season, according to TuneIn’s representative, providing listeners with direct access to MLB games for the first time.

The exclusive offering will be available to millions of potential customers, as eMarketer forecasts more than 57 million households will own a smart home device in 2022. As the number of Americans subscribing to paid music streaming services continues to grow, so could Amazon and TuneIn’s respective customer bases in the next few months.

New Additions to the Digital Subscription Space

Digital subscriptions belong to the fastest-growing segment in the industry, according to Zuora. The success that they experience presents a lot of opportunities for brands to expand and optimize their offerings.

Amazon Kids+ Enters the Mobile Gaming Industry

Amazon Kids+ introduced its first original mobile games Super Spy Ryan and Do, Re & Mi on April 14, which are both featured exclusively on the platform.

The release, while announced in 2022, can be traced back to 2020, according to company executives.

“We are always looking to bring joy and fun into the homes and lives of millions of families,” Natasha Lipovac, Global Head of Amazon Kids+ Content, said. “That’s why, two years ago, we began looking at how we could reach even more kids and bring the magic and thoughtfulness of Amazon Kids+ original content to mobile phones.”

Amazon Kids+ subscriptions start at $2.99 per month for Prime members and $4.99 per month for non-Prime members. This exclusive offering enables the online retail giant to enter a market valued at $94.8 billion as of 2022, which has amassed a record-breaking 2.8 billion players in 2021. The company also stated that more exclusive content will be released at a later date. 

Ultimately, Amazon’s strategy aims to expand its target audience while strengthening its relationships with existing subscribers.

 

Xponential Fitness Introduces a New Digital Platform to Its Global Community

Xponential Fitness has announced the launch of Xponential+ (XPLUS), providing customers with live and on-demand access to a library of workouts.

Some of Xponential’s most well-known brands include: 

The fitness streaming platform costs $29.99 per month for access to all Xponential brands and $19 per month for individual use. This latest offering is a part of a larger marketing strategy to solidify Xponential’s place in the fitness industry, Garrett Marshall, President of Fitness Streaming for XPLUS, told SUBTA.

“Our mission from the beginning has been to create the most accessible boutique fitness provider,” he said. “Over time, we’ve just watched the industry and watched consumer behavior both in our own [boutique fitness] industry as well as others that have seemed to precede us several years in terms of the technological adoption curve. Streaming was a clear opportunity.” 

The launch of XPLUS coincides with the continued rise of the online fitness market, which has been booming since the start of the coronavirus pandemic. Nearly 135% more active American adults stated that online fitness content is the best way to stay fit in 2021 compared to 2020, according to RunRepeat.

The Benefits of Brand Collaboration and Exclusivity in the Customer Experience

Collaboration between brands in the subscription industry can increase reach and allow you to broaden your audience through unique offerings. 

“When the right brands partner together, the benefits are enormous,”  says Emily Riedy from Klaviyo. “They can enhance each other’s reputation, build each other’s audience, and improve status in their respective industries.”

Besides collaboration, it is important to continue to innovate and expand your subscription offering to provide your customers with quality service.

Amazon Kids+ and Xponential Fitness’ latest additions prioritize exclusive experiences while also capitalizing on industry trends. The companies’ entrances into their respective digital markets opens the doors to new opportunities for customer acquisition and revenue growth.

Subscription brands that focus on the customer experience will be able to generate additional growth while gaining a better understanding of their audiences’ needs and evolving habits.

Key Takeaways:

  • Freshly has partnered with Pink Ribbon Girls to send free Freshly meal boxes to mothers battling cancer for every Freshly gift card purchase.
  • TuneIn has launched its premium audio content library to all Amazon Alexa users, including sports and ad-free news and music.
  • Amazon Kids+ introduced its first original mobile games that are available exclusively on the platform.
  • Xponential Fitness announced XPLUS, a new fitness streaming platform providing its community with live and on-demand access to a library of workouts.

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