Loyal High-Income Consumers Spend Nearly $800 per Subscription Every Year

In the world of retail subscription commerce, loyal subscribers play a crucial role in driving revenue and are essential for the success and survival of merchants. 

In “Subscription Commerce Readiness Report: The Loyalty Factor,” PYMNTS Intelligence reviewed the state of play for retail product subscriptions, drawing on a survey of nearly 2,100 consumers with retail product subscriptions as well as a study of 200 subscription commerce providers across nine industries.

Findings detailed in the joint PYMNTS-sticky.io study showed that the most valuable subscribers, known as loyalists, are the backbone of retail subscription commerce, accounting for a substantial portion of total revenue.

These subscribers exhibit strong loyalty to the brands they subscribe to, spending an average of $65 per month per subscription and maintaining their subscriptions for an average of 30 months. This longevity results in a projected lifetime value (LTV) of over $2,500.

One notable characteristic of loyalists is their high income, the PYMNTS Intelligence study further showed. More than half of these valuable subscribers, approximately 53%, fall into the upper-income bracket, earning north of $100,000 annually. This suggests that loyalists have the financial means to sustain their subscriptions and invest in the products or services offered by the merchants.

Additionally, loyalists are predominantly millennials or bridge millennials, indicating that younger generations are more likely to exhibit strong loyalty towards retail subscriptions. This finding highlights the importance of appealing to the preferences and interests of these age groups when designing subscription offerings. 

When it comes to subscription categories, loyalists have specific preferences, with beauty products being the most popular for the 71% of loyalists opting for subscriptions in this category. Food and beverages follow closely behind, with 54% of loyalists choosing these subscriptions. Clothing subscriptions also hold appeal for loyalists, with 51% expressing interest in this category. 

Overall, loyalists, with their high incomes and strong staying power, form the foundation of retail subscription commerce. Understanding their preferences and catering to their needs is crucial for merchants aiming to succeed in this space.