Subscription marketers face mixed prospects in 2023, judging
by the State of Subscription 2023 Annual Report by the subscription trade association (SUBTA).
For instance, 76% of consumers plan to keep the same number of subscriptions
or increasing them this year, Yet 77% expect to spend the same or less on them as they did in 2022.
Almost 40% of consumers say they have the exact number they need. Altogether, 61% of
consumers have 1-4 subscriptions.
During the recent holiday season, 56% of consumers gifted a subscription, the most popular gift being streaming.
“Subscriptions
continue to be integrated into our lives, but consumers are increasingly critical of the value of each subscription, how many subscriptions they have, and how that brand supports their overall life
goals,” says Paul Chambers, CEO of SUBTA.
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Chambers adds, “Our research shows that the industry’s success will undoubtedly continue and rapidly grow, but brands need to
be keenly focused on how they engage their community and enrich their life beyond the products.”
The main reasons for cancelling subscriptions are:
- Price
- Subscription fatigue
- Shipping delays
- Not as valuable as
anticipated
- Poor customer service
- Product defect
But retention is motivated by these
factors:
- More valuable than anticipated
- Perks on top of the subscription
- Transparency from the
company
- Great customer service
- Timely shipping
And here are the reasons for signing up for a subscription:
- Price
- Trustworthy site
- Easy cancellation process
- Return policy
- Customer reviews
- Free shipping
The study states that the subscription industry is worth $275 billion as of Dec. 31, 2022, a
$51 billion increased over 2021.
The full report will be available to in-person attendees at the SubSummit conference in Dallas on May 31-June 2.