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Marketing Crash Investigation: Pret a Manger and Krispy Kremes subprime subscriptions [Video]

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Global Marketing Strategies

The Drum draws on major research carried out by EY – which was recently unveiled at Possible Miami – to gain insights into subscription struggles at Pret a Manger and Krispy Kreme.

The introduction of subscription models in retail and food service industries is a strategic move aimed at enhancing customer loyalty and ensuring a steady revenue stream. However, the recent debacles surrounding the Krispy Kreme and Pret a Manger apps demonstrate that even well-intended initiatives can falter disastrously if not executed correctly. Here we examine the unfolding controversies and the lessons that can be learned.

The promise of subscriptions

The subscription model has revolutionized industries by providing customers with convenience and value, while offering businesses predictable recurring income. Krispy Kreme and Pret A Manger, sister companies under the JAB Holding Company, ventured into this model, anticipating a boost in customer engagement and sales consistency. Pret’s Coffee Subscription, for instance, offers unlimited hot drinks …

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