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‘Don’t sweat the Smol stuff’: Neil Campbell on the future of subscriptions

Neil Campbell

Subscription-based eco-household cleaning brand Smol’s chief growth officer, Neil Campbell, has predicted a rise in letterbox delivery subscriptions despite higher postage costs.

Campbell, who has been with the company since March 2022, said with postage prices shooting up a raft of subscription companies will invest more into letterbox delivery, alongside expanding its offering.

Neil Campbell will be speaking at SubX World 2023 later this month, click here to find out more.

“Most DTC subscription companies start with just one product,” he told InternetRetailing.

“However, when you understand the economics of the subscription game around postage rates and the lifetime value of acquiring customers, which is getting more expensive, companies are going to launch multiple products.”

The news comes as Royal Mail increased its postage prices and recently announced a 16% rise in stamp prices.

Since last month, the price of a First Class stamp increased by 15p to £1.10, and the price of a Second Class stamp will increase by 7p to 75p. The delivery service also unveiled a decrease in costs from £3.95 to £3.69 for a First Class small parcel (2kg), with a 2kg Tracked 24 small parcel reducing in cost from £4.45 to £4.15.

Smol, which launched in 2018, like other DTC brands was “positively impacted” by the Covid-19 pandemic, resulting in soaring sales, customer acquisition and engagement, according to Campbell.

“Unlike other brands, the pandemic was a step along the way because it was quite early in our growth journey.”

He concluded: “Lockdown bought in a lot more customers, but we didn’t see that drop when supermarkets re-opened its doors allowing customers to directly shop from them.”

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