As consumers know, companies of all types are racing to provide subscription-based services.
But are they succeeding? They are, to some extent, judging by How Brands Can Succeed in the Subscription Economy, a study from WBR Insights.
Of the direct-to-consumer companies polled, 63% have grown their subscription customer base in the past 12 months. Email plays a role, for most have found success via direct marketing through email and SMS.
Moreover, 89% will expand or add subscription services over the next three years. But they face many challenges:
The winning strategies that have helped brands find success?
One caveat: It’s a small sample base. WBR Insights surveyed 100 leaders from brand manufacturers. But all represent firms that sell online and offer subscription models. Of those polled, 52% work in marketing.
With that said, 90% have a website conversion rate optimization (CRO) program. But only 23% say it is performing well for customer acquisition and retention. Another 53% find it somewhat effective, and 20% say it’s ineffective.
This may be because 23% now use AI or machine learning to optimize and personalize subscription websites for each user—77% do not.
How can they meet their revenue goals this year? The respondent cite these imperatives:
The report was written by Chris Rand, research manager for WB Research, and Mike Rand, content director for Rand & Rand. It was sponsored by Insights, eTail and Intellimize.