According to a survey conducted by Recurly, a subscription management and billing platform, 24% of consumers in the UK plan to sign up for more subscription services.
The study also found that consumers are more loyal (59%) and tend to spend more money (45%) on the brands and companies they subscribe to.
Conducted this year, a survey of more than 2,000 consumers points out that most (93%) spend up to £ 150 a month on subscriptions and are now more willing to spend their time and money on personal shopping (40%), in-person entertainment and events (36 %) and international travel (34%). Not surprisingly, Streaming Video (69%), Retail (42%) and Food (22%) are the services with the highest subscriptions today.
Given that the cost of living is in the forefront of consumers, 90% of respondents are concerned about inflation. As a result of current costs of goods and services, 28% plan to cancel some subscriptions, but data show that more than three-quarters of respondents will either keep their current subscriptions (49%) or sign up for more (24%). Nearly half of respondents also said the pandemic forced them to reconsider their subscription services.
34% of consumers in the UK now have more subscription services than in 2020-2021, with increased subscriptions to services such as video streaming (62%), retail (26%) and health and fitness (18%). Although two of these services – streaming video (39%) and health and fitness (19%) – and streaming audio (18%) were on the list of most canceled.
Oscar Wall, GM, EMEA, in Recurly, said: “We see growing opportunities for a number of new categories and concepts of subscription. As people return to personal experiences, they carry their love of subscriptions with them.
Streaming services, traditional retailers and personal businesses want to keep and expand their business in 2022, with the fear of the impact of inflation, it is important that companies anticipate the behavior of subscribers – our research suggests that subscriptions drive continued revenue, loyalty, and growth how consumers are establishing their new consumer habits and behaviors. ”
While exploiting the loyalty of subscription services is proving to be a driver of growth, companies should consider several key findings:
Exclusive facilities and services
To retain subscribers, brand content and preferences trigger subscription choices, as 36% of consumers in the UK say that exclusive access to content or services is the main reason to sign up for a subscription service, followed by a preference for one brand / service over others ( 31%).
For Millennial and Gen-Z consumers, access to exclusive and compelling content or services is a major driver of subscription popularity, with, on average, 40% of these consumers preferring this as their primary reason for subscribing. This includes exclusivity in the product, content or service, as well as unique packages, benefits or discounts. It also leads to stronger brand preferences as these consumers are more focused on the types of offers available in a range of companies, and spend time choosing the services that best meet their needs and desires.
“It’s important for retailers and service providers to take advantage of key marketing elements of loyalty, such as promotions and rehearsals, which are a major opportunity to gain and increase market share,” Wall said. “Providing exclusivity and creating consumer-led pricing models for these experience services is a key factor in successful retention and growth,” Wall added.
Driving subscription application
Subscription models have helped usher in the era of convenience and “adjust and forget” options for consumers. The main factors in encouraging subscription registration are ease of setting up, changing or canceling a subscription (56%), promotions such as free trials or product samples (56%) and gaining loyalty points, benefits or discounts (51%). However, the main reasons leading to subscription cancellation are price increases (72%), if the service is no longer useful to the subscriber (67%) and if the competitor has offered a better offer (47%).
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