Subscription eCommerce seemed tailor-made for consumers and businesses when the pandemic shuttered storefronts. Subscriptions served homebound consumers’ needs on a remote, recurring basis while offering businesses growing revenue streams that were otherwise hard to come by.
As “subscription fatigue” sets in and subscribers look to cancel or move on, subscription providers must be ready to share their customers with other services through the strategy of super-aggregation, giving consumers greater control over their streaming experiences with smart content aggregators that span multiple platforms.
In the February edition of the Subscription Commerce Tracker®, PYMNTS explores how giving subscribers more control of plan options and features can drive greater customer satisfaction and engagement, as well as the tools and technologies that subscription providers can leverage to offer consumers exactly the content they crave.
Around the Subscription Commerce Space
Loyalty to any particular streaming platform depends largely on the age of the consumer, according to a recent survey of more than 1,000 adults in the United States. Meanwhile, respondents across all generations spend an average of approximately $278 per month on streaming services. As for the types of subscriptions on which Americans spend their money, video streaming is by far the most popular, with 96% of respondents indicating they subscribe to such services.
Meanwhile, many consumers are frustrated with the explosion in choices presented on video streaming services, making for complicated, hard-to-use experiences. A recent survey of 6,000 global participants found that 60% of respondents said navigating between different streaming services is a frustrating experience. Forty-four percent also have trouble finding something they’d like to watch and spend an average of more than six minutes searching for something they are interested in viewing.
For more on these stories, visit the Tracker’s News and Trends section.
FabFitFun on the Key to Driving Subscriber and Brand Loyalty
The pandemic has caused many consumers to rethink their personal health and well-being, and many are becoming more willing to indulge in self-care, try new things and spend money to get on a healthier track. As it turns out, many of these consumers are in the same boat as others looking to be introduced to new products without the need for in-store contact. These factors have been the perfect recipe for lifestyle and wellness subscription services to thrive.
In this month’s Feature Story, Michael Broukhim, co-founder and co-CEO of lifestyle membership FabFitFun, talks about how the company aims to build subscription box loyalty with personalized products and community-driven experiences.
PYMNTS Intelligence: How Subscriber-Controlled Plan Options Can Drive Customer Satisfaction and Engagement
The global subscription and billing management market is projected to reach $7.43 billion by 2027, according to one report — up from $3.97 billion in 2020 and representing a CAGR of 8.9%.
Despite this growth, not all consumers are happy with their subscriptions. Another report found that nearly two-thirds of global streaming-subscription customers find it frustrating to navigate different services. An equal share feel that the content they pay for is not relevant to them, and more than half would like to curate their content by taking their profiles from one service to another.
This month’s PYMNTS Intelligence examines how a personalized experience has always been important to subscription commerce, but it is becoming vital to customer engagement in an increasingly crowded market.
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