How subscription services can increase conversion
Subscription commerce activity is growing in the United States, and all thanks to a segment of consumers: the “curious by subscription”.
Inquisitive subscription consumers have emerged in the 16 months since March 2020. The approximately 167 million designated US consumers subscribe to at least one type of subscription service, and many of them have signed up over the past year to avoid buying from physical stores. Since then, many have enjoyed the subscription commerce experience so much that they are now constantly on the lookout for more. The average curious subscription consumer now has 3.4 subscriptions at any given time, down from just 2.5 in February. This trend has occurred even as subscription subscriptions among other consumer segments have come to a halt.
Capturing the attention of curious subscription consumers is therefore more critical than ever to success in the subscription commerce industry, and the June 2021 edition of the Subscription Trade Conversion Index, a PYMNTS and sticky.io collaboration, details how subscription service providers can go about it. We surveyed a panel of 2,025 Census-balanced US consumers on how and why they use subscription services to determine which specific subscription features they find most important and which will convert them from curious browsers to loyal subscribers.
PYMNTS research has identified three key strategies businesses can use to attract more curious subscription consumers, one of the most important being cross-promotion. It is common for subscription service providers to send special offers and other promotions to subscribers with the aim of generating new sales. Curious subscription
Consumers are most likely to purchase the items featured in these promotions when they are sent by third parties rather than their current suppliers, even though their products or services nonetheless complement those they receive from their current suppliers.
An example would be that a chocolate subscription service sends a cross-promotion email to a consumer with a coffee subscription, offering a discount on a monthly gift box that includes both coffee and chocolate products. Half of consumers who receive this type of promotion end up buying the products they feature most of the time or every time they receive these promotions. It is therefore the responsibility of subscription service providers to ensure that they are doing their utmost to exploit this potential for cross-promotion.
This is just one of three key strategies that subscription service providers need to know if they are hoping to optimize conversion among curious subscribers. The new Subscription Commerce Conversion Index explores the other two strategies and other key trends vendors need to understand to drive conversion.
To learn more about the state of subscription commerce in the United States, Download The report.