Data helps jewelers align subscription offers with consumer spending behaviors
Aug 3, 2022 | By PYMNTS.com
Subscription commerce has taken off in recent years, and consumers now have more subscription options than ever. This success has a downside, however. More subscriptions mean larger monthly bills, while more choice means fiercer competition for providers. Taken together, subscriber churn is rising, and providers must do more to attract and retain their customers.
This edition of the Subscription Commerce Tracker® explores why customer dissatisfaction with subscriptions is mounting and how subscription providers can avoid the label of becoming an unwanted subscription.
Around the Subscription Commerce Space
Millions of Americans are likely spending much more each month on subscriptions than they realize, according to a recent survey. The survey found that consumers paid 2.5 times more on subscriptions than they estimated, equating to an average difference of $133 per month. The propensity to underestimate monthly costs was not confined to just a handful of consumers, either: Most respondents underestimated by $100 or more.
Facing growing consumer backlash and governmental scrutiny in Europe, Amazon is making it easier to cancel Amazon Prime subscriptions across the continent. The move came in response to criticism that Amazon had made it intentionally and needlessly difficult for consumers to cancel their subscriptions, forcing them to navigate a confusing series of menus and links. Now, however, consumers can easily leave Amazon with just two simple clicks.
For more on these and other stories, visit the Tracker’s News and Trends section.
Rocksbox on Keeping Subscriptions Fresh
In a crowded subscription ecosystem, it can be difficult for subscription providers to stand out and keep customers coming back, said Allison Vigil, president of Rocksbox, a monthly jewelry rental subscription service. In an interview with PYMNTS, she explained that the key to keeping customers happy was to leverage personalized data to curate the right products and provide consumers with their preferred payment options.
To learn more about how Rocksbox keeps customers coming back, read the Tracker’s Feature Story.
How to Avoid Becoming a Consumer’s Unwanted Subscription
From unexpected fees to difficulties canceling subscriptions, consumer frustrations are mounting, and subscription churn is rising. Fortunately for subscription providers, there are ways to avoid becoming an unwanted subscription, including a streamlined payment experience that can reduce churn by 30% or more.
To learn more about these trends in subscription commerce, read the Tracker’s PYMNTS Intelligence.
About the Tracker