Once consumers get used to the subscribe-and-save model, many start piling these subscriptions on.
For the report “The Impact of Subscription Models on Consumer Choice,” PYMNTS Intelligence surveyed a panel of more than 2,100 U.S. consumers to get a better understanding of their subscription habits.
The results revealed that 47% of participants in discount refill subscriptions such as Amazon’s Subscribe & Save option were likely to add another discount refill to their roster.
The findings indicated that once consumers grew accustomed to the savings and convenience of the model, many engaged with it more, creating an opportunity for brands looking to drive long-term loyalty.
These kinds of subscriptions work best for consumable products that subscribers go through regularly. The model does not work for everything.
“Subscribe & Save doesn’t work with a lot of items because people don’t consume them on a day-to-day basis,” Brett Cramer, owner of seasonings brand The Spice Lab — which abandoned the model — told PYMNTS in an interview earlier this year. “It has to be a product that people consume in less than 30 days.”
Overall, subscription merchants are being challenged to work harder for consumers’ loyalty, as sticky.io CEO Brian Bogosian noted in a conversation with PYMNTS’ Karen Webster last year for the J.P. Morgan Payments Series: Global Innovators in Payments.
“The bar continues to get higher,” Bogosian said. “People’s budgets are getting squeezed. People aren’t spending money frivolously. If they don’t get value, if they don’t get flexibility, if they don’t get incentives to continue, they’ll drop off.”
As consumers become accustomed to the subscribe-and-save model, they increasingly embrace additional discount refill subscriptions, highlighting a growing opportunity for brands to cultivate lasting loyalty through savings and convenience.