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  • Replenium

If your customers’ most frequent repeat purchases are not automated, you’re already behind

Updated: Nov 18, 2021

It’s perplexing that so many organizations spend enormous amounts of money and time attempting to predict and shape future demand without first leveraging current known demand.

Auto-replenishment, or the process of automating routine purchases, is the low-hanging fruit of the ecommerce industry. Financially speaking, the realization of annuity revenue through auto-replenishment can easily generate the difference between merely surviving and actually thriving. And when offering shoppers the automation of a wide assortment of products, retailers and brand manufacturers have the opportunity to significantly extend the recurring revenue benefit that has been proven in many single item (or single category) subscription-based programs.

Furthermore, with Replenium’s Auto-Replenishment Platform, machine-learning expands purchase opportunities by serving up recommended usage rates, quantities, and products that are personalized to individual shoppers.

Industry experts agree: NYU professor, author, public speaker, and CNN show-host Scott Galloway has been espousing the power of recurring revenue models for over a year. “Recurring revenue is a modern-day miracle,” Galloway asserted during his “Prof G Show” video on The Rise of the Rundle & Algorithmic-Commerce.

The “Rundle” or recurring revenue bundle model is Galloway’s coined term. Galloway states that companies with recurring revenue relationships tend to outperform and build stakeholder value faster than those that are in serial “dating” relationships with their customers because, “the markets value recurring revenue companies at a multiple of revenue six to ten times that of transactions companies who have to reinvent their consumer relationships with every purchase.”

Galloway asserts that a key component of a “rundle” is that the service gets fine-tuned over time through the intelligent use of algorithms: “Every industry disruptor uses algorithms as the building blocks of automation and personalization.”

The combination of algorithms powering the consumer experience for businesses pursuing automated recurring revenues generates “A-commerce” or “algorithmic-commerce” according to Galloway. He predicts “A-commerce” is the new disruptive force in the industry, stating, “A-commerce is the ultimate magnifier of monogamous relationships (between consumers and brands).”

Amazon is the most obvious A-commerce company, but only Replenium brings the value of A-commerce to other brands and retailers. To learn more about Replenium’s Auto-Replenishment Platform or to see a demo illustrating how easily you can bring automated routine purchasing to your customers, contact us today.


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