50% of Loyal Subscribers Are Young Consumers With Multiple Subscriptions

The retail subscription industry has experienced significant growth in recent years, with providers offering a wide range of subscription models to cater to evolving consumer preferences.

In “The Impact of Subscription Models on Consumer Choice,” PYMNTS Intelligence draws on insights gathered from a survey of more than 2,100 consumers to examine the motivations driving different subscriber personas to subscribe, trends in subscriber longevity and value and the importance of user experience in retaining subscribers.

Findings captured in the joint PYMNTS-sticky.io study reveal that the greatest share of the most valuable group of subscribers, known as loyalists, is predominantly multi-model.

These multi-model subscribers, who have multiple subscriptions with no single category comprising a majority, make up nearly 50% of all subscribers and have the highest total lifetime value (LTV) across retail subscriptions, averaging over $2,500. This group represents a lucrative segment for retail subscription providers.

The research also highlights that younger consumers dominate the multi-model subscriber group, with 45% of millennials, 44% of bridge millennials, and 42% of Gen Z consumers preferring this approach. In contrast, older consumers tend to gravitate towards standard subscriptions, discount refills, and same-price refills.

Another interesting finding is that subscribers tend to stick with the subscription models they already know and like. Among subscribers with a strong interest in adding more subscriptions, there is a clear preference for adding more of the same types they already prefer.

For example, 61% of VIP subscribers are highly likely to add another VIP subscription. This behavior suggests that subscription providers can leverage the tendency of subscribers to stick to familiar models when developing marketing and retention strategies.

Drilling down into the data shows that cost is not the primary concern for most subscribers. The research shows that only 18% of subscribers cite cost as their top concern, while 61% prioritize enjoyment or convenience. This indicates that retail subscription providers should focus on delivering enjoyable and convenient experiences to attract and retain customers.

Overall, the retail subscription industry continues to evolve, with multi-model subscribers emerging as a significant and valuable segment.

By understanding the preferences and habits of these subscribers, retail subscription providers can develop strategies that cater to their needs and increase customer loyalty. Offering enjoyable and convenient experiences, along with a variety of subscription options, will be key to success in this competitive market.