Top Benefits of a Subscription Model
One of the biggest shopping trends the ecommerce world has seen in recent years is the rise of the subscription model. With the global online subscription market expected to hit $904.2 billion by 2026, it’s clear there are business opportunities here.
If transitioning to or starting a subscription business is something you’re considering, you’ll need to know what the benefits of subscription models are.
So, why are subscriptions so popular?
Top subscription benefits for customers
A recent survey studying why global shoppers use subscription services shows that convenience, cost-effectiveness, and consistency rank among their top motivations.
According to consumers, the biggest reason they use subscription services is the convenience they get. The majority of those surveyed (51%) say it is why they use or plan to use subscription services. To that end, experts recommend that businesses that are considering offering such services or already have one in place focus on building a seamless and omnichannel customer experience.
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Second on the list is cost-effectiveness. Close to half (47%) of shoppers surveyed list it as a reason they use subscription services. If this is a motive you’re thinking about leveraging for your brand’s sales efforts, make sure to conduct adequate research on your target buyers’ spending habits to be able to offer a more personalized service.
This is followed by the ability to help maintain a consistent lifestyle, cited as a reason by 42% of consumers. The fourth- and fifth-biggest benefits of subscription models are the option to personalize services and try new products—41% of shoppers list these as reasons to use subscription services. It’s worth noting that close to one-quarter (23%) of people who canceled a subscription service in the past did so because they were unable to customize it to their liking.
Another benefit of subscription models is the possibility to try before committing to purchase, as one-third (33%) of buyers list this as an advantage. The seventh-largest benefit of subscription models is the sense of community they offer as buyers can interact with other like-minded people via online communities.
Meanwhile, 22% of consumers say they use subscription services because it was included as part of a separate offer, and another 10% say they do so out of necessity to access a particular service.