While the pandemic may have dealt a blow to high streets up and down the country, it’s been a very different story for the subscription economy. Research from Emarsys today reveals that one in five UK households are now signed up to a subscription service, spending on average £35 a month — over £400 every year.
And it doesn’t stop there. Around 1 in 10 Brits (8 per cent) spend over £75 a month — that’s £900 a year — on both physical and digital subscriptions, making this model a lucrative opportunity for retailers wanting a slice of the action.
The research of 2000 UK consumers, also shows that over half (52 per cent) of UK shoppers have subscribed to – or plan to subscribe to – a monthly subscription for products. As for when and how we’re buying these subscriptions, 44 per cent of consumers do the majority of their subscription shopping on their mobile phones.
During the UK lockdown, subscriptions were a welcome way for consumers to treat themselves every month. When considering why Brits purchase subscription boxes, it has been revealed that the initial draw for most is the offer of a free trial (29 per cent), however the element of surprise that a subscription service offers each month is another key reason, with nearly a quarter of consumers (22 per cent) admitting this makes them more keen to sign up.
Commenting on these findings, Em Sheldon, fashion, beauty and travel blogger said: “Although we’ve all spent so much time at home during the recent lockdowns, our appetite for shopping really hasn’t diminished. I know from speaking to my family, friends, and followers that people still want to get hold of the products and experiences they love – and subscription services are answering our calls.
“From food box subscriptions of restaurant-quality meals to letterbox flower boxes in the post to brighten up your home, these subscription services have got many of us through the monotony of the past year, giving people something special to look forward to.”
Also commenting on these findings, Chris Godderidge, VP Mobile at Emarsys said: “Our research shows that UK consumers are voting with their wallets and loving the range of subscription services available to them. With shoppers spending more time than ever browsing on their mobile devices during lockdown, many smart brands have adopted a subscription model, in order to be able to reach new customers who, in ‘normal times’, may never have considered signing up to receive their products and services.
“Now that physical stores have reopened and restrictions are easing, the big challenge for brands will be to keep these customers engaged and encourage them to stick with the subscriptions that previously brought them so much joy. While offering a personalised experience on mobile has previously been challenging, the technology now exists to help brands offer a tailored experience for each individual customer, based on their exact preferences and needs. This means that retailers can create even more bespoke offerings to capture the attention of shoppers and speak to them as individuals.”
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