50% of Loyal Subscribers Are Young Consumers With Multiple Subscriptions
GLOIn recent years, the retail subscription industry has witnessed substantial growth, with service providers offering a diverse array of subscription models to accommodate changing consumer preferences.
In their report titled “The Impact of Subscription Models on Consumer Choice,” PYMNTS Intelligence utilizes insights from a survey of more than 2,100 consumers to explore the motivations that drive various types of subscribers to subscribe, trends in subscriber retention and value, and the significance of user experience in retaining subscribers.
The findings from the collaborative study conducted by PYMNTS and sticky.io reveal that the largest portion of the most valuable subscriber group, referred to as “loyalists,” predominantly consists of multi-model subscribers.
These multi-model subscribers, who maintain multiple subscriptions with no single category dominating, constitute almost half of all subscribers and boast the highest overall lifetime value (LTV) in the realm of retail subscriptions, averaging more than $2,500. This demographic represents an enticing and profitable segment for retail subscription providers.
The study also points out that younger consumers are the predominant group among multi-model subscribers, with 45% of millennials, 44% of bridge millennials, and 42% of Gen Z consumers favoring this approach. Conversely, older consumers tend to opt for standard subscriptions, discount refills, and same-price refills.
Another intriguing discovery is that subscribers tend to adhere to the subscription models they are already familiar with and like. For those eager to add more subscriptions, there is a clear inclination to opt for more of the same types they already prefer. For instance, 61% of VIP subscribers express a strong likelihood of adding another VIP subscription. This behavior suggests that subscription providers can capitalize on subscribers’ tendency to stick with what they know when devising marketing and retention strategies.
Delving deeper into the data reveals that cost is not the primary concern for the majority of subscribers. The research indicates that only 18% of subscribers consider cost as their foremost concern, while 61% prioritize enjoyment or convenience. This underscores the importance for retail subscription providers to prioritize delivering enjoyable and convenient experiences to attract and retain customers.
In general, the retail subscription industry is in a state of constant evolution, with multi-model subscribers emerging as a significant and valuable segment. By comprehending the preferences and behaviors of these subscribers, retail subscription providers can formulate strategies that cater to their needs and enhance customer loyalty. Offering enjoyable and convenient experiences, along with a diverse array of subscription options, will be pivotal for success in this competitive market.
Source: PYMNTS
