Capitalising on a growing market
Pre-COVID the subscription market was growing, both in terms of size and the diversity of product categories where subscription options were available. If anything, COVID seems to have strengthened the appeal of a subscription model, for some sectors: the likes of Netflix, Spotify, Audible, Amazon Prime and Disney Plus have thrived.
Subscription services offer benefits to both consumers (saving money, saving time, lessening the “ownership burden” and discovery of new products) and retailers (keeping momentum in the market, maintaining cashflow, building long-term relationships with customers and building valuable consumer datasets) so they are well placed to enjoy continued growth.
Our subscriptions report provides evidence for the growth of these consumer and retailer drivers and identifies some cool examples of current best practice in this dynamic space.
Succeeding with subscriptions depends on striking the right balance between consumer and retailer benefits.