A new study from Deloitte Digital and Zuora concludes that there is both strong loyalty and room for growth in the subscription business - especially in the food sector.
In fact, almost seven out of 10 customers who have subscriptions have at least one for food - far more than in electronics (43 percent) or fashion (32 percent).
In addition, the study says that "consumers who currently have at least one subscription are 2x more likely to increase subscriptions in the next 3 years than they are to decrease."
The study goes on: "Customer satisfaction with subscription ranges from 80% to 93%, but churn remains high … For the CPG sector, the transition to subscription products is still in the relatively early stages, which is why there is more urgency than ever to build direct relationships with customers before the competition builds them first. While there is plenty of room for growth, the stakes for CPG brands are high because, in most CPG categories, customers will only choose one subscription service."
- KC's View:
I think that one of the things that ought to come out of the pandemic is an increased usage by retailers of subscription/auto replenishment programs - like Amazon's Subscribe & Save - that can give them deeper and enduring connections to their shoppers. Especially as supply chains are challenged, these programs can give everybody from the consumer to the supplier a greater sense of stability.