New Data: Subscription-Curious Consumers Now Driving Majority Of New US Subscriptions

Opening on an optimistic note, the June 2021 Subscription Commerce Conversion Index, a PYMNTS and sticky.io collaboration, states, “There has arguably never been a better time for subscription merchants to explore and capitalize” on thriving interest in these services.

Surveying a census-balanced panel of 2,025 U.S. consumers about the subscription services they currently favor and the evolving tastes of the subscription-happy public, the Index shines a light on crucial patterns now forming, especially around “subscription-curious” consumers.

Noting that “success in the subscription commerce industry is now less about choosing any one path to conversion and more about finding the right mix of subscription products and services, the right features to enhance those offerings and the right partners for seizing cross-promotional opportunities,” the June Index also states that “Subscription-curious consumers now use an average of 3.4 different subscription services at any given time — up from an average of 2.5 services in February,” further underscoring action in recurring revenue.

Deeper Understanding Of The Subscription Boom

The “why” of things often tells the tale. In the case of subscription commerce, the forces popularizing it now revolve around ease, convenience, and related experiences.

“The share of D2C subscribers using subscriptions to save time, to avoid the hassle of shopping regularly, for the sake of convenience and to save money all increased between February and May,” per the latest Index, along with “a particularly strong increase” in the share using D2C subscriptions to avoid having to remember to make regular trips to the store.

2021 Subscription Commerce Conversion Index found that 34 percent of all subscribers in May 2021 “used both D2C and non-D2C subscription services, while 25 percent used D2C subscriptions exclusively. Together they accounted for 57 percent of all subscribers in the U.S. in May 2021. This represented a quarter-over-quarter increase of 2.4 percent,” calling this evidence that “consumers felt they were getting more from their D2C commerce experiences and that their satisfaction with D2C services was leading to boosted numbers.”

Smoother Subscription Experiences Starting At Sign-Up

As subscription commerce goes decisively mainstream, more consumers are getting interested in the experiences, discoveries, convenience and savings offered by direct-to-consumer (D2C).

Per the Index, “positive experiences that these consumers have had with their D2C subscriptions are also inspiring them to search for D2C subscription experiences elsewhere. Consumer interest in signing up for D2C subscriptions was up across the board in May, as more consumers expressed interest in every segment we studied. Interest in using D2C subscriptions for household supplies jumped 6 percent between February and May, while interest in D2C health and wellness products rose 4 percent.”

That has much to do with improvements in subscription platform tech connecting consumers to these opportunities. “Merchants’ average subscription commerce conversion Index score increased from 48.1 in February to 49.5 in May,” researchers found, “indicating that consumers generally had smoother sign-up experiences. The most marked improvement subscription merchants made was in how quick their customers were able to sign up for new services. The average subscriber need – ed just 191 seconds in Q2 2021. This was 23 seconds less than it took in Q1 2021 — an eternity in internet time.”