Research showed that we average seven subscription contracts per household, spending over £500 a year, each!
87% of businesses asked think subscription services allow them to keep up with competitors.
Why?
Because you have the opportunity to build trust and foster even better customer relationships, which in turn builds better retention levels.
Subscription services increased by 50+% YoY when the pandemic struck, showing us that Brits relied on this model as they spent more time at home.
Have you considered it for your 2021 business plans? Here’s why you should…
Exacmple:
A few months ago, high street coffee company Pret A Manger introduced a subscription scheme.
The subscription allows consumers to get up to 5 of their favourite coffees every day made in-store by the experts, for a fixed monthly fee of £20! Meaning if you’re a regular barista coffee drinker, the new cost is unrivalled.
How do subscriptions benefit the consumer?
Personalisation:
63% of consumers expect personalisation as standard now. When a customer receives their monthly box that has been curated with their personal tastes and needs in mind, they feel understood, valued and connected.
Convenience:
Subscribers never have to remember to reorder every month, which gives them the reassurance that they will have whatever they need before they actually need it.
How do subscriptions benefit the business?
Recurring revenue:
Recurring revenue is perhaps one of the most compelling factors in a company valuation. This consistency in revenue also allows companies to easily calculate the lifetime value of a customer
Greater customer loyalty:
You have the opportunity to build trust and foster even better customer relationships, which in turn builds better retention levels. Even if they’re not entirely happy with your product, it can be hard – psychologically – for a customer to go ahead and cancel a subscription.
The subscription box market is estimated to grow by 77% to be worth over £1 billion by 2022.
Have you considered it for your 2021 business plans?
