Access is often used by subscription services as a way for them to bring extra value to their product and customers. Discounts offered on or with these subscription-based services are more relevant than ever before as their popularity continues to increase. And we’re predicting this trend will only continue to pick up steam as it’s already grown by more than 100% a year over the past five years.
But what do we mean by “subscription services” exactly?
A subscription service involves paying a certain amount of money in regular intervals to receive a product or service – everything from magazine subscriptions (i.e. People), to TV and music streaming (i.e. HBO NOW & Apple Music) and subscription boxes (i.e. Birchbox).
15% of online shoppers have signed up for one or more subscriptions and the average amount of subscriptions an active subscriber holds is two, but nearly 35% have three or more.
And as popular as these services are becoming, they are just as popularly being canceled (known in the industry as "churn"). Overall, 40% of e-commerce subscribers have canceled their subscriptions, with more than one-third canceling in less than three months and over half canceling within six.
The subscription service game is a hard one to play. With high churn rates, consumers are looking for some kind of added value that makes them stay - a big part of the reason so many of them start working with Access. So what is it that influences consumers to 1) sign up for a subscription service, 2) cancel it, or 3) become a long-term customer? These stats offer some insight:
- It was recommended by someone (68%)
- They wanted to try something new (66%)
- It came with a financial incentive (65%)
- They specifically needed the product (37%)
- They liked the subscription model (34%)
- It had the flexibility to cancel (30%)
- Insufficient value for the money (78%)
- Dissatisfied with product/experience (77%)
- Preference to buy when needed (69%)
- Lack of flexibility (45%)
- Found better subscription (30%)
- Personalized experience (78%)
- Convenience (56%)
- Value for the money (54%)
- Tailored experience (49%)
- Surprise and delight (38%)
- Sense of community (24%)
Because of the current trendiness when it comes to subscription services and the fairly saturated market for them right now, we thought it’d be interesting to highlight 10 subscription service picks that we think are doing it right and bringing value to the customer.