Discount Refill Subscribers Demand Flexibility

Across retail subscribers, those who participate in discount refill programs are disproportionately likely to demand the option to switch it up when they need to, PYMNTS Intelligence research reveals.

By the Numbers

The PYMNTS Intelligence report “The Impact of Subscription Models on Consumer Choice,” created in collaboration with sticky.io, drew from a survey of more than 2,100 U.S. adults to understand motivations driving different subscriber personas to subscribe, trends in subscriber longevity and value and the importance of user experience in retaining subscribers.

The results revealed that discount refill subscribers — those who commit to receiving products at a fixed cadence in exchange for a price reduction — are 12% likelier than the average retail subscriber to cite the ability to make changes to the subscription frequency without the need to unsubscribe first as the most important reason they subscribe.

The Data in Context

Discount refill subscriptions can be key to brands’ ability to reach their highest-value customers. In a recent interview with PYMNTS, Affton Coffelt, founder of Broken Top Candle Company, noted that the company’s direct-to-consumer (D2C) subscription goes a long way towards driving retention with its biggest spenders.

“We’ve seen a lot of engagement with [highly loyal] consumers in our subscription side of the business,” Coffelt said. “Everything in our product line is consumable, which makes it easy on a reorder cadence.”

Additionally, it is not only D2C. Chris Gallant, CEO of Chamberlain Coffee, told PYMNTS last month that he is seeing Amazon’s Subscribe & Save program provide opportunities to create long-term customer relationships outside the company’s direct channels.

“As we launched on Amazon, we’ve seen a lot of new consumers acquired through that channel really ramping up subscription because it’s that basket play, and a lot of people leverage Amazon like they would a grocery store,” Gallant said. “…We’ve seen that subscription business really take off.”