Attest, a SaaS consumer research platform has released a report that shows the pandemic boom is finally starting to wear off for US subscription brands, and that they will have to work harder to win customers in 2022. The new research found that 41 per cent of Americans say they have an active product subscription, compared to 47 per cent of consumers in 2020.
In line with this downward trend, the data also highlights a decline in the number of consumers actively looking for a new product subscription; down from 18 per cent in 2020 to 14 per cent today.
Americans are also less likely to have multiple product subscriptions in 2021; only 18 per cent have more than one now, compared with 21 per cent last year. Interestingly, the number of people who say they have never had a product subscription remains consistent from 2020’s research, stubbornly at 29 per cent, which means brands have not been successful in tempting this segment over the last year.
What are Americans subscribing to?
Of the respondents who have a product subscription, over a third (37 per cent) say they have a food or drink subscription – making it the most popular type. This is followed closely by personal care or health/fitness subscriptions (36 per cent). The biggest shift from 2020 came in pet product subscriptions; last year, this was only the fifth most popular type of subscription box, but now it’s third (at 32 per cent). Rising to fourth place this year is toiletries and cosmetics (30 per cent), pushing clothing and shoes down to fifth (29 per cent).
In terms of demographics, Millennials aged 26-40 are the most committed to product subscriptions with 49 per cent reporting having one or more (25 per cent currently have one, and 24 per cent have more than one). Meanwhile, Gen X (aged 41-55) are most likely to say they had a product subscription in the past but not now (32 per cent), indicating subscriptions may have failed to deliver value for this age group.
America’s product subscribers cite convenience as the primary reason for their purchase – nearly a third (32 per cent) own a subscription because it’s delivered straight to their door. This reason has jumped into pole position in 2021 (doubling from just 16 per cent in 2020).
Opportunities still exist for brands
Despite the decline in people with subscriptions in 2021, the survey finds that 65 per cent of Americans are open-minded to purchasing a product subscription. In fact, only 21 per cent say they’re unlikely to consider a subscription (down from 27 per cent last year).
However, there’s one thing that’s most important for Americans thinking about buying a product subscription. Nearly 7 in 10 consumers (68 per cent) say value for money is their biggest purchasing concern. The second most important factor is the ability to choose what products are sent (54 per cent), followed by a subscription that can be easily paused or cancelled (53 per cent). Meanwhile, ‘unboxing’, a prominent phenomenon of the social media age that has seen many D2C brands focusing on nailing great packaging and presentation, is important to just a fifth of Americans (21 per cent).
This attention on value for money is also reflected in how much consumers would spend – most Americans are willing to pay between $10 to $20 a month for a new subscription (30 per cent). A further 22 per cent would pay $21 to $30 per month, while 12 per cent would be prepared to pay $31 to $40 and 11% would shell out $41 to $50.
The Subscription Economy in 2022
Attest also asked Americans what they feel is currently missing from the Subscription Economy and what they would like regularly delivered to their door in the future.
The number one item most likely to be mentioned was alcohol. While there are already a number of subscription boxes catering to drinkers, the research threw up some ideas from consumers for more niche offerings. These include alcohol and cigar boxes, boxes that mixed alcohol with cosmetics and lingerie, and boxes with small samples of beers and spirits.
Behind alcohol, Americans expressed demand for the delivery of cannabis by subscription – with weed now legal in a number of US states for both recreational and medical purposes – this could represent a growth sector for subscriptions.
What type of advertising works best?
The power of personal recommendation cannot be overstated; Attest’s research finds that a recommendation from a friend or family member is far and away the most influential factor that pushes someone to consider a subscription box brand.
While it lags way behind receiving a recommendation, ‘seeing an advert’ comes in second. The third most influential factor is seeing a product subscription talked about on social media, again demonstrating the importance of social proof.
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