Auto-fill services enable merchants to reach the highest-value subscribers, driving long-term revenue.
Supplemental research from PYMNTS Intelligence’s report “The Replenish Economy: A Household Supply Deep Dive” highlighted in Karen Webster’s Monday (Jan. 8) feature “The Eight Pivotal Strategies for Payments and the Digital Economy in 2024” revealed that consumers who are high-lifetime-value subscribers are disproportionately likely to rely on auto-fill subscriptions to get the items they need day to day.
A survey of nearly 14,000 consumers revealed that, while 20% overall bought most or all their regular shopping via scheduled or auto-fill subscriptions in the last six months, that share doubles to 40% when you look at high-value subscribers.
Meanwhile, 30% of middle-value subscribers and 27% of low-value subscribers said the same, suggesting that once consumers are used to making purchases via subscription services, they become disproportionately likely to rely on auto-fill options, even when they are not in it for the long haul.
“The replenishment economy turns the notion of shopping into editing (if need be) an already curated list of items that are frequently purchased at a specific interval,” Webster observed in the feature. “…Today, replenishment is done across a variety of direct-to-consumer sites, retailers who want in on the recurring sales opportunity for relevant SKUs, and Amazon Subscribe & Save, a service that now counts 18.5 million U.S. consumers as customers.”
The growing reliance on auto-fill options among high-value subscribers presents an opportunity for merchants. By offering auto-fill services, merchants can cater to the preferences of their most valuable customers and enhance their overall shopping experience.
With the increasing reliance on these scheduled delivery options, it is evident that convenience is a key driver for high-value subscribers. As the digital economy continues to evolve, merchants must adapt and cater to the changing needs and preferences of these customers to remain competitive.