Convenience Drives Retail Subscription Adoption in Q4

With convenience emerging as the primary motivation for retail subscription adoption, retailers are challenged to adapt their strategies to meet customer expectations and capitalize on this growing trend.

By the Numbers

The December installment of the Decision Guide report, “The Retail Subscription Features That Make Top-Performing Merchants,” a PYMNTS Intelligence and sticky.io collaboration, drew from a survey of 188 retail subscription merchants and more than 2,000 U.S. consumers in September. It examined, among other matters, the relationship between loyal customers and merchant revenues.

The results revealed that convenience was the most popular reason that consumers enrolled in retail subscriptions in Q4 2023. Thirty-eight percent of subscribers said convenience was their top reason for subscribing, a greater share than said the same of any other factor.

The Data in Context

This revelation highlights the growing importance of convenience in the minds of consumers. With the rise of digital commerce and the increasing demand for seamless experiences, retailers must prioritize speed and ease to attract and retain customers. Offering subscription services that simplify the purchasing process and provide regular access to desired products has become a winning strategy for top-performing merchants.

“Be customer-centric about offerings,” Vindicia Chief Revenue Officer Jack Bullock noted in the “Subscription Commerce Tracker®,” a PYMNTS and Vindicia collaboration. “Notice what customers are loving and hating about your product. Home in on what customers are loving and emphasize that (take those messages to market when marketing your subscriptions).”

PYMNTS Intelligence found that many consumers use retail product subscriptions to save them the trip to brick-and-mortar stores. The study “The Replenish Economy: A Household Supply Deep Dive” found that 42% of subscribers shop in-store less often because of their subscriptions.

Additionally, in an interview with PYMNTS’ Karen Webster posted in August, sticky.io CEO Brian Bogosian noted that consumers are willing to pay extra for this convenience.

“You’re left wondering if just going with a couple of clicks online is a better way to go even if you spend a little bit more,” he said. “Many of these services are becoming essential.”