Price hikes and belt-tightening are an unhappy combination for retail subscriptions, causing cutbacks to deepen.
That’s a key finding, among others, in the new “Subscription Commerce Conversion Index: Subscribers Seek Affordability And Convenience,” a PYMNTS and sticky.io collaboration.
As this latest sounding states, “Slightly more than 80% of American households have a subscription — but this belies key trends that reflect a shift in consumer sentiment. In every category except streaming entertainment, subscription rates are down.”
Noting that the average subscription per retail subscriber dropped to the lowest level since early 2021, we found that the average consumer “dropped at least one retail subscription, holding an average of 2.9 in September, down from 4.1 in July. Middle-income and Generation Z are the consumers who most reduced their average number of subscriptions this quarter.”
The September figure represents a 42% decline from the peak of 5.0 in October 2021.
Get yours: Subscription Commerce Conversion Index: Subscribers Seek Affordability And Convenience
As to which retail subscriptions consumers are going without, the study finds that, “Consumer services — often considered a bellwether of consumer confidence and economic health — have become more costly in the last quarter. Here, we saw the highest reduction in subscription levels — from 16% to 12%.”
Digging into whys and wherefores, consumers cited some key features as important to their decision-making process when it comes to what to keep and what to forego.
Per the study, “Among those very or extremely likely to cancel, 88% cited free shipping, 80% valued product details, 81% mentioned coupons and discounts, 75% cited product reviews, and 72% named inventory status access. While some of these features are related to saving money, others involve simplifying shopping and saving time.”
See it now: Subscription Commerce Conversion Index: Subscribers Seek Affordability And Convenience
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