Solidcore Says Subscriptions Take Over Wellness Industry as Consumers Seek Convenience

As consumers increasingly expect seamless convenience across all their daily routines, health and wellness services are increasingly relying on subscription models.

In an interview with PYMNTS, Shane McCarthy, senior vice president of digital and marketing at strength training company Solidcore, noted that the wellness industry is shifting toward subscription models as consumers look for convenient, predictable services and as companies in the space aim to drive recurring revenue.

“There’s just an ongoing increase in the amount of spend on wellness subscriptions, as people prioritize their health and wanting to feel good,” McCarthy said. “I think the industry has moved this way a lot over the last maybe 5 to 10 years, when you look at everything from wearables to nutrition. For consumers, it’s taking the hassle out of reordering, and it enables companies to able to provide better value, due to being able to better plan demand, supply chain — stuff like that.”

He added that the brand’s recently launched Core Collective program, which provides members with perks such as deals and discounts with six external brands ranging from makeup companies to meal kits, can help keep consumers engaged long-term.

Indeed, many consumers are engaging with wellness and health platforms digitally, especially in cities. PYMNTS Intelligence’s study “The ConnectedEconomy Monthly Report: The Urban-Rural Health Divide Edition,” which drew from responses from nearly 2,500 U.S. consumers, reveals that 60% of urban consumers engaged digitally to get their wellness needs met, while only 29% of suburban consumers and 19% of those in rural areas do the same.

McCarthy added that the new program meets consumer demand for ongoing value.

“People need to be able to see continuing value and results, so … we have a bunch of membership perks already, and then continuing to add Core Collective, we’re not getting stale or stagnant in what we’re doing.”

In fact, once consumers are used to getting special treatment, they start to seek it out more and more, according to the PYMNTS Intelligence report “The Impact of Subscription Models on Consumer Choice,” created in collaboration with sticky.io.

The study, which draws from a survey of more than 2,100 U.S. consumers, reveals that the 27% of subscribers who belong to VIP membership programs — programs designed to reward loyalty, granting early or special access to products or other loyalty perks unavailable to other members — get used to their special treatment and seek out more such subscriptions. Specifically, among the 73% of these subscribers who are very or extremely likely to expand their portfolio of subscriptions, 61% are highly likely to add another VIP membership.

Additionally, once brands can reach ultra-loyal subscribers, the revenue opportunity is sizable. The PYMNTS Intelligence study “How Retail Subscription Merchants Can Win and Retain High LTV Customers,” another collaboration with sticky.io, which is based on a survey of more than 2,000 U.S. consumers, finds that loyal customers make up 30% of consumers and almost 80% of merchant revenues. They stay with retail subscriptions for over 30 months and spend $65 monthly on average, making a total LTV that exceeds $2,500.

In terms of emerging trends in the wellness subscription space, McCarthy highlighted the increasing number of partnerships between brands in different industries or areas, such as Fitbit partnering with SoulCycle, allowing brands to provide a wider range of services and benefits to consumers.

Additionally, McCarthy mentioned that people are increasingly open to trying various wellness products, from makeup brands to supplements, creating opportunities for integration and collaboration among brands.

“People like to try a myriad of different things,” McCarthy said. “So I think when you talk about what’s going to happen in the next year or so, people may be trying various different things, be it a makeup brand, supplements, whatever else, and [expecting them all to be] plugging and playing together.”