As consumers increasingly expect seamless convenience across all their daily routines, health and wellness services are increasingly relying on subscription models.
GLOIn an interview with PYMNTS, Shane McCarthy, Senior Vice President of Digital and Marketing at Solidcore, a company specializing in strength training, discussed the changing dynamics of the wellness industry towards subscription-based models. This transformation is driven by consumers seeking convenient and predictable services, while companies in the sector aim to establish reliable and recurring revenue streams.
McCarthy highlighted the consistent rise in spending on wellness subscriptions, attributing it to a growing emphasis on health and well-being among consumers. He noted that over the past 5 to 10 years, the industry has witnessed a significant shift towards subscription models, encompassing various aspects like wearables and nutrition. According to McCarthy, this shift addresses the consumer’s desire to simplify the process of reordering, enabling companies to provide better value by improving planning for demand, supply chain management, and related factors.
The recently launched Core Collective program at Solidcore, offering members perks such as exclusive deals and discounts with external brands ranging from makeup companies to meal kits, is seen by McCarthy as a strategy to sustain long-term consumer engagement by delivering ongoing value and results.
Urban areas exhibit a notable trend of digital engagement with wellness and health platforms. PYMNTS Intelligence’s study, drawing responses from nearly 2,500 U.S. consumers, indicates that 60% of urban consumers fulfill their wellness needs digitally, compared to 29% in suburban areas and 19% in rural areas.
McCarthy highlighted the consumer behavior of seeking out more subscription offerings once they become accustomed to special treatment. The PYMNTS Intelligence report on the impact of subscription models on consumer choice revealed that those belonging to VIP membership programs, designed to reward loyalty, tend to explore additional VIP memberships, showcasing a preference for exclusive benefits.
Furthermore, a study on retail subscription merchants emphasized the substantial revenue potential with ultra-loyal subscribers. Loyal customers, constituting 30% of consumers, contribute almost 80% of merchant revenues, demonstrating prolonged subscription durations and an average monthly spending of $65.
Looking at emerging trends, McCarthy pointed out the increasing trend of partnerships between brands in different industries within the wellness subscription space. Collaborations such as Fitbit partnering with SoulCycle enable brands to offer a broader array of services and benefits to consumers. Additionally, McCarthy noted the growing openness of consumers to trying various wellness products, creating opportunities for integration and collaboration among brands in the foreseeable future.
Source: PYMNTS
