Consumer Loyalty and Challenges in Subscription Services

This article explores how many consumers continue their subscriptions month after month using the survey done by Expert Market Research. It reveals critical information on how to keep customer retention high by analysing consumer preferences, explaining importance of cost transparency and the need to introduce unique features.

Subscription services have become integral to our daily lives, offering everything from streaming entertainment to meal kits and fitness programs. But how loyal are consumers to these services over the long term? To help answer this Expert Market Research has done a comprehensive study which surveyed over 50000 respondents across India’s top 25 cities revealing insights into consumer preference on using subscription services.

Over 67% respondents are likely or very likely to continue with their subscription services, this percentage is high because many platforms have introduced unique features. One great example is Netflix as they recently introduced a new feature which allows subscribers to put up moments of great importance on their homepage creating a bond between the site and customers which is hard to break. Another survey which explores why people cancel subscriptions however shows an intriguing result presenting an entirely different image.

Cost also plays a crucial role in a consumer’s decision to continue or unsubscribe from services. If a business is transparent about its costs and avoids upcharging customers, they are more likely to retain their subscriptions. However, even with transparency and a strong customer relationship, it is unlikely for consumers to continue their subscriptions if the product becomes obsolete or better alternatives emerge in the market. Furthermore the study highlights the importance of avoiding such pitfalls by providing a comprehensive plan.

The study conducted by Expert Research Market anticipates a forthcoming increase in subscription cancellations, primarily driven by shifting consumption patterns among millennials and Gen-Z. These demographic groups, known for their preference for flexibility and constantly evolving preferences, pose a challenge to subscription-based businesses. However, the study also provides valuable insights into how businesses can counteract this trend and consolidate their position as market leaders. By adopting the approaches highlighted in the study businesses will be able to better navigate the challenges faced with change in consumption patterns.

The data also points out that the subscription service landscape is evolving, with a notable majority of consumers expressing satisfaction and loyalty. However, the 33% who are less likely to continue using these services highlight areas for improvement. By addressing the concerns and needs of all consumers, subscription services can aim for higher retention rates and long-term success. The companies who are able to turn these consumers will be able to become leaders in their industry and will shape its future.