Introduction to the Report
The way we shop is changing faster than ever, with the subscription economy at the forefront of this transformation. Consumers are increasingly relying on subscriptions for everything from groceries and beauty to fitness and learning, driven by an appetite for convenience, personalisation, and flexibility. The SubscriptionX Report 2025, published in May 2025, aims to provide retailers with proven strategies and actionable insights for navigating this new and essential territory. It addresses the challenges posed by digitally savvy consumers who demand seamless onboarding, frictionless payments, and easy management of their subscriptions, especially as loyalty becomes more elusive with a multitude of options available.
Inside the Report: Key Sections and Findings
The SubscriptionX Report 2025 offers a comprehensive overview of the subscription landscape, with featured sections including:
- Strategic Overview: This section highlights that consumers increasingly favor “participation over possession.” The global subscriptions, membership, and loyalty industry was valued at an estimated $3 trillion in 2024, up from $2 trillion in 2023. Streaming services, particularly in the Asia Pacific region, are major drivers of subscriber growth, with Netflix seeing significant success in India due to tailored pricing and local content.
- Consumers: This section reveals that “experiences lead the way for the modern consumer.” The most popular subscription service is access to an experience (e.g., gym membership) rather than just a product.
- Segments: Among leading global retailers offering subscription programs, software stores and bookshops account for the largest share (35% and 29% respectively). The report notes that 80% of retailers offer a single subscription plan, and 80% of global subscription plans are priced in USD with monthly payments being the most common.
- Building a High-Growth Subscription Model: Success requires strategic planning and a customer-centric design. Understanding customer needs and values, alongside seamless payment management and reliable logistics, are crucial.
- Boosting Lifetime Customer Value: Focusing on customer lifetime value (CLV) is key to long-term success. Data-driven personalisation, agile strategies, strong onboarding, and gamification are highlighted as effective methods for increasing CLV and retention.
- Payment and Logistics: Frictionless checkouts, offering various payment frequencies and options (like Apple Pay, Google Pay, PayPal), and transparent communication about changes are essential for seamless payments.
- Dealing with Lost Customers: Understanding why customers cancel through surveys and direct communication is crucial for win-back strategies. Making the cancellation process easy can encourage customers to return in the future.
Case Studies: Real-World Subscription Success
The report features several compelling case studies that showcase successful subscription models across various sectors:
Hobbycraft: As the UK’s largest arts and crafts retailer, Hobbycraft launched Hobbycraft Plus and Cut and Create subscriptions, offering discounts, free delivery, and access to exclusive content and business support. These services remain a key part of their strategy, despite recent store closures.
Gousto: Founded in 2012, Gousto built its own proprietary technology to offer healthy, convenient, and sustainable home cooking options. Their focus on customer satisfaction, data-led personalisation (like their “Spotify of food” recommender algorithm), and continuous innovation has driven significant growth and high Net Promoter Scores.
Pets at Home: This leading UK pet care retailer has leveraged digital transformation and a robust ecommerce strategy, including strong growth in subscriptions, to achieve significant profits. Their Pet Club membership base has grown, demonstrating the appeal of their loyalty and subscription offerings, further supported by their in-store vet practices.
Cheesegeek: Launched in 2019, Cheesegeek delivers curated seasonal cheese selections to subscribers. Their focus on personalisation, ongoing engagement, and expanding beyond subscriptions to include build-a-board and gifting services has driven their success, culminating in a partnership with Selfridges.
Who Gives A Crap: This sustainable hygiene company, founded in 2012, uses a subscription-led direct-to-consumer model to deliver toilet paper and other products made from recycled materials or bamboo. Their mission-driven approach (donating 50% of profits to sanitation projects), distinctive branding, and expansion into retail and B2B partnerships have propelled them to become the third-largest toilet paper brand in the UK.
Hotel Chocolat: The British chocolatier has successfully integrated subscription services, like The Velvetiser Subscription, to drive growth and customer engagement. They offer customised orders, digital loyalty programs with AR experiences, and have expanded their product range to include plant-based options.
Lookfantastic: Under the THG umbrella, Lookfantastic offers a monthly beauty box subscription with high-end products. Their flexible plans and limited-edition bundles contribute to their appeal.
