More specifically, 90% of consumers are interested in upgrading from a basic subscription to a package with added privileges such as discounts, exclusive offers and access to events or activities with other subscribers. Of those, more than half are either “extremely interested” or “very interested” in these types of privileges. In addition, 76% of consumers are willing to pay $3.99 extra each month for a subscription that gives them special access to premium content or members-only benefits, with that percentage increasing to 84% if the price is set at $1.99 extra.
The study also revealed why some consumers choose to cancel their subscriptions. Among consumers who recently canceled,39% said they didn’t see the value of the subscription, 36% said they no longer wanted the financial obligation, and 34% said the subscription was no longer relevant to them. Another 13% cited billing complications, such as difficulties with updating credit card information and confirming payment details.
“Vindicia’s subscription survey offers two compelling truths,” said Gene Hoffman, CEO of Vindicia. “First, as long as service providers deliver sustained and obvious value for money, customers will stick around. Second, demand for value-added benefits is so high that service providers can consider it a reliable avenue for significant business expansion. Our survey found that despite the notion that consumers don’t want to add significant financial obligations to their lives, they are very willing to pay for the services they value.”
The survey also revealed the following key figures:
Video, shopping and audio are the most important types of services:
- 45% of respondents cited video services such as HBO Now, Netflix and Hulu are most important to them
- 30% cited shopping services such as Amazon Prime and Google Express
- 8% cited audio services such as Apple Music, Pandora, Spotify and Audible
As for engagement:
- 30% said they use their most-utilized subscription service at least 20 hours per week
- 28% use them 11 to 20 hours per week
- 42% use them 1 to 10 hours per week
And when it comes to ranking the number one reason for subscribing to digital services to begin with, convenience was the top of the list, followed by the value of the service, cost savings, selection and finally personalization.
Click here for more information about the survey and the complete results.
Vindicia brings enterprise-class innovation to consumer-facing subscription billing to help digital companies acquire and retain more customers by making payments seamless, secure and easy. Vindicia keeps customers connected to the subscription services they love, and companies connected to the subscription revenues they need. Vindicia has processed more than $21 billion globally and generates over $90 million in annual incremental revenue for clients. Clients include TransUnion Interactive, IAC, Bloomberg, Vimeo, and Next Issue Media. Vindicia was recently ranked the number one billing software solution on the market by Business-Software.com, and recognized as a “Top 100 Promising Tech Companies” by CIOReview magazine. For more information visit: www.vindicia.com.
Jenna Finn, 415-249-6777