In terms of subscription categories, loyal consumers exhibit distinct preferences. Among them, beauty products emerge as the most sought-after, with 71% opting for subscriptions in this category. Food and beverages closely follow suit, garnering the preference of 54% among loyal customers. Clothing subscriptions also hold a strong appeal, with 51% expressing interest in this category.
GLOIn the realm of retail subscription commerce, devoted subscribers play a pivotal role in driving revenue and are indispensable for the prosperity and endurance of merchants.
The “Subscription Commerce Readiness Report: The Loyalty Factor” by PYMNTS Intelligence delved into the landscape of retail product subscriptions. This analysis drew from a survey encompassing nearly 2,100 consumers with retail product subscriptions, as well as a comprehensive study of 200 subscription commerce providers spanning nine diverse industries.
The joint PYMNTS-sticky.io study uncovered that the most prized subscribers, known as loyalists, constitute the cornerstone of retail subscription commerce, contributing significantly to the overall revenue stream.
These subscribers demonstrate unwavering allegiance to the brands they subscribe to, expending an average of $65 monthly per subscription and upholding their subscriptions for an average of 30 months. This enduring commitment results in a projected lifetime value (LTV) surpassing $2,500.
The PYMNTS Intelligence study highlighted the relatively high incomes of loyal cystomers. It revealed that a significant majority of these valuable subscribers, approximately 53%, belong to the higher income bracket, earning upwards of $100,000 annually. This indicates that loyalists possess the financial capacity to maintain their subscriptions and invest in the offerings provided by the merchants.
Furthermore, the study demonstrated that loyal consumers are predominantly comprised of millennials or bridge millennials. This suggests that younger generations exhibit a stronger allegiance towards retail subscriptions. This underscores the importance of tailoring subscription offerings to align with the preferences and interests of these age demographics.
In terms of subscription categories, loyal consumers exhibit distinct preferences. Among them, beauty products emerge as the most sought-after, with 71% of loyalists opting for subscriptions in this category. Food and beverages closely follow suit, garnering the preference of 54% of loyalists. Clothing subscriptions also hold a strong appeal, with 51% expressing interest in this category.
In essence, loyalists, with their elevated incomes and unwavering commitment, constitute the bedrock of retail subscription commerce. Recognizing their preferences and addressing their needs is paramount for merchants looking to thrive in this domain.
Source: PYMNTS
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