Subscriptions

Subscriptions are growing.

  • The average American consumer household has nearly 4 subscriptions, and a quarter of them have more subscriptions than they did six months ago; renewal rates stand at 85%

  • The most popular subscriptions are warehouse/club (57%), fitness (31%) and food (19%); other popular categories include beauty/ grooming (17%), pet products (16%), clothing (14%), and meal kits (13%)

  • Growth appears to be found at warehouse/clubs (where 38% plan a subscription over the next six months), followed by fitness (31%), food (31%), clothing (28%), beverages (27%) and meal kits (26%)

  • There are several different types of subscribers that exhibit different levels of stickiness:

    • ~20% feel rewarded and are loyal to the brands involved and see them as a treat;

    • ~25% are "guilty followers," who are enticed by trials but struggle to find value in them, so are likely to cancel after a promotion period ends;

    • ~40% are "triers" or researchers, but they also feel somewhat guilty about the consistent expense; and

    • the rest are interested bystanders who appreciate that subscriptions can save them money, but aren't influenced to sign up by coupons and discounts

Alicia Morga