Nearly one-third of all U.S. consumers have at least one retail subscription. Among these retail subscribers, direct-to-consumer (D2C) subscriptions are quickly growing more popular, according to the “Subscription Commerce Conversion Index,” a PYMNTS and sticky.io collaboration based on a survey of 2,424 U.S. consumers.
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The share of subscribers obtaining their subscriptions directly from the brand grew in 2021, from 57% in the first quarter (Q1) to 64% in Q4. Conversely, the share of those who do not subscribe directly from the brand declined from 43% in Q1 2021 to 36% in Q4 2021.
Currently, roughly 51 million consumers in the U.S. are using D2C subscriptions.
The most common reason D2C subscribers give for subscribing to brands directly is that doing so gives them access to better products. Fifty percent of D2C subscribers cite this as a motivator for using D2C subscriptions.
Almost as many D2C subscribers — 49% — are motivated by better pricing and a guarantee that the product was made by the manufacturer and is not a knockoff or off-brand product.
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Better customer service, better access to product-specific coupons or discounts, and better rewards are also near the top of the list of reasons for using D2C subscriptions, and these factors are gaining importance. The share of D2C subscribers citing these reasons has increased since Q1 2021.
Providing these benefits will be critical for merchants striving to win over D2C subscribers and keep new customers going forward. It is not enough to provide high-quality products; merchants must invest in providing their customers the trust-strengthening and convenience-boosting features that can help drive conversion and support sustained growth.
