Why People Cancel Subscriptions?

A recent study by expert market research delves into the top reasons why consumers do not renew their subscription services. Alternative options and cost are tied as the number one reason for consumers switching subscription services or cancelling their existing services. The study further looks into how personalised content and payments services tailored to buyer preferences will boost future subscriptions rates.

Whether burdened by the recurring expenses or finding better alternatives we consumers have a multitude of reasons to cancel our subscriptions no matter how frustrating the process actually is in a comprehensive study conducted by Expert Market Research which surveyed over 50000 respondents across the bustling metro cities of India, showed the real reason why people unsubscribe from their favourite service apps.

Subscription cancellation Reasons

Subscription services are typically viewed as convenient and cost-effective means of acquiring products or services. However, they can sometimes become burdensome, a sentiment shared by 20% of respondents. A common issue arises when businesses increase subscription costs after initially attracting customers with low introductory rates. This price escalation can lead to customer attrition, particularly among those who were primarily drawn to the service due to its affordability. A study by Expert Market Research also reveals that businesses demonstrating cost transparency tend to achieve greater success in their industry.

Businesses must also address the concerns of the 20% of respondents who find better alternatives and the other 18% who no longer find worth in the subscription anymore. This represents a significant part of total respondents who if retained will boost business sales, to achieve this enterprises need to enhance their offerings and make it better than all available alternatives. If this is achieved, new entrants will be able to compete with market leaders like Netflix and Spotify. The study further outlines strategies for businesses to improve their financial performance and boost sales. Implementing these recommendations can help enterprises retain a larger portion of their customer base, ensuring long-term growth and industry leadership

What to do with my Subscriptions

Another thing that was revealed in the survey is that the primary reason for unsubscribing is lack of use. Which becomes apparent when people find that they are subscribed to multiple platforms which provide similar services. Lack of use of a subscription should be a big concern for a business as they are unable to present their unique selling point to customers.  To help present their use to subscribers a business needs a great advertisement team which can show the businesses potential to customers and the study provides steps to help achieve this and more.  

Accessibility has always been an issue that industries have faced especially in the technology sector hence it is a good sign that only 4% of respondents found that they were unable to access their subscriptions on different platforms. 

Another study offered by Expert Market Research reveals that subscription cancellation has been on a rise and goes into detail on the above-mentioned problem areas. Due to rise in subscription cancellation it has become essential for businesses to provide product which check all the boxes of a consumer because while a business has a definite market, consumers have an innumerable number of subscriptions to choose from.