A recent study conducted by PYMNTS and sticky.io, titled "The Subscription Commerce Readiness Report: The Loyalty Factor," revealed the lowest recorded average number of subscriptions per subscriber since February 2021.
GLOAmid concerns about inflation, consumers who are mindful of their spending on subscriptions may be cutting back. However, Snapchat’s impressive growth in subscribers suggests that many are still willing to pay a premium for an exclusive experience, especially among younger generations.
Snapchat recently announced that its Snapchat+ subscription, which grants members early access to new features and the opportunity to test experimental capabilities, now boasts over 4 million subscribers, marking one year since its launch. While this number is a small fraction of Snapchat’s global daily active user base of 383 million as of April, the revenue generated from each subscriber’s monthly contribution amounts to hundreds of millions of dollars annually.
Notably, Snapchat has been discreet about the pricing of the program, stating that it may vary across countries and devices, requiring consumers to check their settings to see the current cost. When the program debuted last year, it was priced at $3.99 per month.
The number of subscribers has grown rapidly. Just three months ago, at the end of the first quarter of 2023, Snap highlighted its membership base of “over 3 million,” indicating that it added approximately 1 million members in the last quarter alone.
This growth is particularly significant considering that consumers have been seeking ways to reduce their subscriptions during this period of inflation. A recent study conducted by PYMNTS and sticky.io, titled “The Subscription Commerce Readiness Report: The Loyalty Factor,” revealed the lowest recorded average number of subscriptions per subscriber since February 2021.
According to the survey, consumers now have an average of only 2.6 subscriptions each. Additionally, 57% of respondents canceled at least one subscription in the past year due to cost.
However, Snapchat holds a key advantage in attracting subscribers through its young user base. Various sources indicate that the social platform primarily appeals to Generation Z and even younger demographics, who prioritize subscriptions that provide enjoyment.
Research from another study by PYMNTS and sticky.io, titled “The Subscription Commerce Readiness Report: Bridging the Gap Between Subscription Conversion and Retention,” showed that while convenience and cost are the main factors for baby boomers and seniors when subscribing to retail services, younger generations prioritize enjoyment.
Furthermore, Snapchat’s subscription offering goes beyond typical retail product subscriptions. It provides users with something highly sought-after in an ever-evolving social landscape: exclusive access.
The subscription grants visibility into who has rewatched their Stories, the ability to boost Stories for higher viewership, insights into friends’ engagement with the app, priority replies to content from public figures, and more. As young consumers increasingly rely on Snapchat for their social interactions online, these features offer subscribers the advantage they desire.
