According to a survey conducted by Recurly, a subscription management and billing platform, 24% of UK customers plan to sign up for more subscription services.
The survey further revealed that consumers are more loyal (59%) and spend more money with the brands and businesses they subscribe to (45%).
Conducted this year, the survey of more than 2,000 consumers highlights that the majority (93%) spend up to £ 150 per month on subscriptions and are now willing to spend their time and money on personal purchases (40%). -Personal entertainment and events (36%) and international travel (34%). Surprisingly, streaming video (69%), retail (42%) and food (22%) are currently the most subscribed services.
With the cost of living at the forefront of consumers’ minds, 90% of respondents are concerned about inflation. As a result of the current cost of goods and services, 28% plan to cancel some subscriptions, but data indicates that three-quarters of respondents will either retain their current subscription (49%) or sign up more (24%). Nearly half of respondents also said the epidemic forced them to reconsider their subscription services.
With increased subscriptions to services such as streaming video (62%), retail (26%) and health and fitness (18%), 34% of UK subscribers now have more subscription services than in 2020-2021. However, these two services – streaming video (39%) and health and fitness (19%) – and streaming audio (18%) were mostly on the cancellation list.
Oscar Wall, GM, EMEA, Recurly, said: “We’re seeing a number of new subscription categories and opportunities for ideas. When people return to personal experience, they carry with them the love of their subscription.
“As streaming services, traditional retailers and private businesses seek to retain and scale in 2022, fearing the effects of inflation, it is important for businesses to predict customer subscription behavior – our research suggests that subscriptions increase repeat revenue, loyalty, and consumer value.” Behavior increases with establishment. “
To capitalize on the loyalty of subscription services to drive growth, businesses should consider several key outcomes:
Exclusive content and services
Subscribers, Content and Brand Preference Drive Subscription preferences, as UK 36% of consumers say having exclusive access to content or services is a major reason to sign up for a subscription service, then a brand / service is preferred. Others (31%).
For millennials and Zen-Z customers, access to exclusive and mandatory content or services is a major driver of popularity, on average, with 40% of these consumers prioritizing it as their primary reason for subscribing. This includes specialization of products, content or services as well as unique bundling, special benefits or discounts. This leads to stronger choices about brands as these customers focus more on the offers available from different companies and they spend time choosing the best services according to their needs and wants.
“It’s important for retailers and service providers to tap into key marketing elements of loyalty, such as promotions and trials, which is a key opportunity to gain and increase market share,” Wall said. “Providing exclusivity and building consumer-led value models across these experience services is a key factor in successful retention and growth,” Wall added.
Driving subscription sign up
Subscription models have helped usher in an era of convenience and provide consumers with “set it and forget it” options. The main reasons for running subscription sign-ups are easy to set up, change or cancel subscriptions (56%), promotion like free trial or product sampling (56%) and earn loyalty points, benefits or discounts (51%). However, the main reasons for subscription cancellation are price increases (72%), if the service is no longer used by the customer (67%), and if a competitor offers better (47%).
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