Most Brits cancel product subscription in first year
Even though subscription commerce is very hot, most brands are having problems with retaining their customers. Research shows that a staggering 98 percent of consumers in the United Kingdom cancel their product subscription services within the first year.
Subscription ecommerce is a market that has grown significantly over the last couple of years. What started with subscription services like Dollar Shave Club or HelloFresh is now a billion euros industry. In Europe alone, there are hundreds of thousands of companies that sell products through a subscription model.
1 in 50 keep the subscription for over a year
Research from Emarsys shows that only one in fifty UK shoppers have kept their subscription services for more than a year. This means that 98 percent cancel their services within the first twelve months of subscribing. The average consumer in the United Kingdom even cancels their subscriptions in less than half a year – an average of 5.3 months.
The average UK shoppers cancels in 5.3 months.
When it comes to differences in ages, shoppers over the age of 55 seem to be the most loyal. They are the most likely age group to maintain a subscription for more than a year.
Why many consumers cancel their subscriptions
The fact that many consumers cancel their subscriptions, could have something to do with the corona crisis. During the pandemic, many consumers started signing up for these kinds of services, because stores were closes, but they still needed to have. certain products. However, stores are opening up again, which means that consumers won’t necessarily need all subscription services anymore.
Brands need to do more to keep shoppers engaged.
Research shows that 52 percent of UK consumers either have or are planning to commit to a monthly subscription for products. But at the same time, 38 percent think subscription services are too expensive, or bad value for money. And 18 percent canceled the subscription when the free trial ran out.
‘Subscription services need to serve consumers’ needs’
“Subscription services have proven to be a very popular way of shopping throughout the lockdowns of the past year, but it’s clear that brands need to do more to keep shoppers engaged as things open up again”, Pamela Danzinger, author and shopping expert, comments. “Consumers – particularly younger generations – will not continue paying for a subscription that isn’t serving their needs.”
Commons reasons to cancel a product subscription are high costs and a lack of personalization.