While the UK subscription economy appears in many ways to be booming, research from Emarsys today reveals that only one in fifty (2 per cent) of UK shoppers have kept their subscription services for more than a year.
The study of 2,000 UK consumers indicates that despite spending £35 a month on subscription services, the average consumer cancels their subscriptions in less than half a year — an average of just 5.3 months. Shoppers over the age of 55 seem to be the most loyal amongst UK consumers, being the most likely age group to maintain a subscription for over a year.
Subscription services have proven very popular during the pandemic, offering consumers who have had more time than ever to browse on their mobile a way to treat themselves and loved ones every month. In fact, more than half of UK consumers (52 per cent) either have or are planning to commit to a monthly subscription for products.
So, why are so many consumers cancelling their subscriptions so soon?
Nearly 2 in 5 UK consumers (38 per cent) believe subscription services to be too expensive, or bad value for money, while almost a fifth (18 per cent) stopped the subscription when the free trial that attracted them to buy it in the first place ran out.
Pamela Danzinger, author and shopping expert, commented: “Subscription services have proven to be a very popular way of shopping throughout the lockdowns of the past year, but it’s clear that brands need to do more to keep shoppers engaged as things open up again. Consumers – particularly younger generations – will not continue paying for a subscription that isn’t serving their needs.”
Chris Godderidge, VP Mobile at Emarsys, added: “With a huge proportion of discerning UK consumers choosing to cancel their subscriptions due to high costs and a lack of personalisation, brands need to change tack if they are to keep their customers. Taking customer data and using it to inform genuine 1:1 personalisation is fundamental to that process and can drive seismic strategic change; Netflix’s movement into the video games market is one recent example.
“Brands need to respect the evolution of a customer’s behaviour, delivering bespoke options and offers that reflect the developing relationship with each individual rather than peppering them with cookie-cutter promotions that could disenchant them. Those that prioritize this are more likely to bring customers closer to the brand, inspiring the loyalty that delivers the predictable, profitable growth so important to the subscription model.”
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