Let's talk Subscriptions...
Article by Louise McHale
Thu 27 May 2021
Did you know that 65% of homes hold subscriptions? In fact, they average about seven subs contracts per home.
And as anything consumable can be sold via recurring payment, that number is on the up, because the subscriptions model makes the consumer’s life easier & generally saves some pennies along the way. You can subscribe to anything from mascara to loo rolls, fitness classes, video streaming content, digital or traditional print content (and much more!).
I’m always amazed to see big, successful brands that still haven’t caught on. The opportunity is enormous, and these days, there really is no good business reason to not be offering a recurring payment option.
And the smaller brands are missing a trick too. I've been in touch with several companies recently, companies I buy from regularly, to suggest a subscriptions model, and they don't seem to get it. How much could these brands take off if they tapped into post-pandemic consumer needs and preferred buying methods?
Households typically spend £552 a year on subscriptions, an economy which has grown to be worth £323 million with lockdown creating an additional boom as the desire to buy online and feel confident that products would be available, grew overnight.
Not that many years’ ago, if somebody spoke about a subscription, it was for magazines or newspapers. Then we moved into the realm of the “subscription box”. But now? Where is the line? In fact, IS there a line?
I currently hold subscriptions to: razor blades, eyeliner, mascara, tissues, cereal bars, dishwasher tablets, lip balm, concealer, toothbrush heads, laundry stain remover, amazon prime, Spotify, Netflix & Disney plus.
But what else would I subscribe to if I had come across the right offering from my preferred brands? Night cream, cleanser & toner, foundation, body oil, lipstick, eco-friendly laundry detergent & washing up liquid, hair products…the list continues.
And why do I prefer to buy via subscription?
- I never run out of my most used products
- As a busy full-time mother of two, my memory is not a reliable resource (!)
- I never need to worry about items being out of stock
- The per unit cost is almost always cheaper
And why should YOU consider selling via subscription?
- Improved customer retention
- Multiple upsell opportunities (in-store & online)
- Slicker customer shopping experience
- Better inventory and sales forecasting
- Customer loyalty
- Statistics - the stats show that the subscriptions model is on the rise, more than ever & it's important not to get left behind
Subscriptions today are necessary. And the consumer market is hungry for it.
So, whilst we might be experts when it comes to print and digital subscriptions (we are), we are also passionate about supporting other industries that want to dip their toe in to the world of subs.
It really does just make sense. And with our help, it is very easy.
Contact Louise McHale if you want to have a chat about how we could help.
Figures are taken from a survey conducted from 1 to 3 June 2020 by Opinium on behalf of Barclaycard Payments, of over 2,000 UK adults