Retailers and brands face the challenge of keeping subscription customers engaged, with almost three-quarters (74%) of customers dropping off after their first year in the ecommerce sector, according to new research.
More generally, two-thirds (66%) of consumers end subscriptions after their first year with churn rates were particularly high in verticals such as food and beauty.
The data from Recurly, based on a survey of 1,000 consumers across the US and Europe conducted with Hanover Research, looked at what consumers want from subscriptions.
Loyalty access lacking
When trying new subscriptions 89% of consumers say value for money is the number one reason they sign up. However, although they expect perks and incentives from subscriptions, only 30% report access to a loyalty programme. This is despite most saying that price-related incentives, such as discounts or lower fees, might have prevented them cancelling.
More than half (55%) of subscribers want to be able to pause or cancel a subscription easily, but only just over a third (37%) currently have that option.
Streaming video subscriptions remain the most purchased service, with audio and gaming closely behind. 78% of those surveyed in Europe had paid for a video subscription in the last year, with streaming audio and gaming sitting at 62% and 52% respectively. Last week, Ofcom revealed that cost was the most common reason for SVoD subscribers unsubscribing.
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