2021 Subscription Service First Launch
Annual Usage Increasing by Triple Digits
Service Name Changed... Daily Usage Frequency from 1 to 5 Times
Number of Monthly Discounts Applied to Some Subscriptions Also Increased
CU, a convenience store operated by BGF Retail, announced on the 16th that it will relaunch the 'Subscription Coupon' service available on its mobile application Pocket CU.
'CU Subscription' is a service where customers pay a monthly subscription fee (1,000 KRW to 4,000 KRW) for selected items among about 10 product categories such as lunch boxes, salads, and freshly brewed coffee on Pocket CU, and receive regular discounts a set number of times both online and offline.
BGF Retail's convenience store CU announced on the 16th that it will newly renovate and launch the 'Subscription Coupon' service operated on Pocket CU. [Photo by BGF Retail]
Through this service, customers can get up to 30% off on popular products they frequently purchase. CU explained that the discount amount can reach up to five times the subscription fee, gaining positive responses among thrifty consumers amid high inflation.
In fact, the number of uses of the CU subscription service increased by 119% in 2022 compared to the previous year, and by 143% last year. Considering the service was launched in 2021, it has shown triple-digit growth every year. The proportion of users subscribing to two or more products also rose from 15% in 2021 to 27% in 2022, and further increased to 31% last year.
Among customers using the subscription service, the MZ generation (Millennials + Generation Z) accounted for more than 60% of the total. The usage by age group was ▲teens 3% ▲20s 33% ▲30s 36% ▲40s 23% ▲50s and above 5%.
CU explained that as the use of the subscription service continues to increase, they have renewed existing subscription products to meet diverse customer demands and lifestyles. The core of the renewal is enhancing customer benefits and improving ease of use.
First, CU offers a total of five subscription services tailored to customers' consumption preferences and purposes: ▲Diet Management ▲Value Meal ▲Convenient Meal ▲Chilled Beverages ▲get Americano.
The criteria for applying discounts have also been expanded. Previously, the discount was limited to one subscribed item once a day; now, there is no limit on the number of times. Instead, discounts can be applied to up to five items per day. The number of discounts available per month has increased from 10 to 20 for the Diet Management subscription, and from 10 to 15 for Convenient Meal and Value Meal subscriptions. The get Americano and Chilled Beverages subscriptions remain the same as before, with 30 and 20 discounts respectively.
The subscription fee for the Diet Management product was reduced by 20%, from 2,500 KRW to 2,000 KRW. The maximum discount rate applicable through the subscription service remains at 30%, unchanged from before.
The CU subscription service can be used at over 18,000 CU stores nationwide, as well as for delivery, Pick Convenience, and reservation purchases on Pocket CU. Additionally, CU plans to offer extra benefits to members who use the subscription service's regular payment for a long period. Detailed information about the renewal can be found on Pocket CU.
Kim Seok-hwan, head of BGF Retail's DX Division, said, "Using the subscription service allows customers to enjoy regular discounts on frequently purchased products, and overlapping benefits such as buy-one-get-one-free (1+1) promotions and telecom discounts are also applicable, leading to a rapid increase in users every year." He added, "We will continue to introduce various services like subscriptions to ease the burden on customers amid high inflation."
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