Why Are We So Invested in Subscription Culture?
by James P. Outreach & PR ExecutiveIn this day and age, you can subscribe to just about
anything. From films and music to meal plans and exercise, most of our daily
essentials are a simple ‘click to subscribe’ away. Once, subscription culture
was associated with millennial mindsets and indulgence. However, we can now
subscribe to practical services such as grocery shopping, MOT maintenance, and
household cleaning supplies. This means that subscriptions are convenient
rather than purely luxurious. In today’s market, consumers are more often
prioritising efficiency, looking for solutions that save them both time and
money. Subscription services offer a supply to this demand and your shopping
can now be factored around your busy life, without impacting your daily
routine.
Growing at a rate of 200
per cent a year, the subscription industry is booming and shows no signs of
slowing down. There are an estimated 10,000 subscription services available in
today’s market and each one can be tailored specifically to an individual’s
needs and tastes. Subscription culture is thriving, and that could be
attributed to three key reasons:
·
Convenience — fitting purchasing around a hectic
lifestyle in which people prioritise other things over shopping.
·
Indulgence — the ‘treat yourself’ ethos which
sets apart the millennial generation and encourages consumers to splash out on
subscriptions to luxury goods
·
Personalisation — fitting essential purchases
around your lifestyle. For example, a laundry detergent subscription that takes
into account how many washes you do on average per week and sends you refills
when they estimate you’ll need them.
Each of these benefits are motivating more and more
consumers to sign up to various services. Let’s take a closer look at the
sectors that are thriving the most due to subscription culture.
Entertainment
The entertainment sector is the one most associated with
subscriptions — and this consumer habit is nothing new here! Before the digital
subscriptions that we so frequently enjoy today, magazine and newspaper
subscriptions were commonplace. Now however, the entertainment industry is
dominated by subscription giants such as Spotify and Netflix.
In the final quarter of 2019, more than 167
million were subscribed to Netflix around the world, with an additional 4.6
million customers using the streaming platform on a free trial basis. The
platform has become one of the most common ways to access entertainment.
Furthermore, it inspires loyalty within in its consumer base, with the majority
of watchers claiming that they would stick with their subscription even if the
price was raised.
Similarly, the music streaming platform Spotify has seen a
constant increase in number of subscribers since
2015. With 113 million premium subscribers worldwide as of 2019, it has
become one of the most popular ways to keep up to date with music in the world.
In the case of both Netflix and Spotify, your subscription
cost comes out of your bank each month and you are automatically granted access
to a seemingly unlimited wealth of media. One reason why services like these ones
have a loyal customer base is that once you’ve experienced unlimited
entertainment at your fingertips, it’s hard to go back!
Health and lifestyle
In addition to the entertainment industry, the health and
fitness industry has jumped on the subscription bandwagon. As of 2018, 9.9
million people in the UK were subscribed to a gym membership — regardless of
how many times they were actually going to the gym. Like with entertainment,
this service is based on access and relies on the customer’s own participation.
On the other hand, many people subscribe to wellness and
lifestyle products that are delivered directly to their door, benefitting from
a regular product in return for their subscription rather than access to a
service. Meal planning boxes such as Hello Fresh are great examples of this.
Focussing on minimising food waste and helping customers eat more healthily,
food subscriptions like this one provide all the ingredients that you’ll need
to cut a certain recipe, already measured out precisely for your needs.
Transport
Making a relatively recent debut into the subscriptions
market, we have the transport sector. Car insurance, servicing, and repairs can
now all be subscribed to. This means, for example, that motorists no longer need
to fork out more than £200 for their annual Volvo service.
Companies such as the RAC now offer fixed price service plans, so that the
maintenance costs of a vehicle can now be spread out across the year and
motorists can rest easy, knowing that any potential issues will already be
covered.
Each sector has embraced subscription culture in its own way
and is working towards the ultimate goal of full customer satisfaction. When a
customer feels confident that they are subscribed to every service or product
they need and their entertainment, wellness, and travel needs are all being
taken care of, they can save time to focus on other important elements of their
lives.
Sources
https://blog.chartmogul.com/subscription-conquered-our-world/
https://www.statista.com/statistics/244995/number-of-paying-spotify-subscribers/
https://www.leisuredb.com/blogs/2018/5/16/2018-state-of-the-uk-fitness-industry-report-out-now
https://www.rac.co.uk/approvedgarages/products-services/service-plan
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Created on Mar 19th 2020 05:15. Viewed 559 times.