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It was the year of transition for the subscription business, creating a question mark for 2023.
In 2022, it became common to call ‘massive unsubscribing’ as inflation-stricken consumers had to choose from subscriptions they acquired during the two-year COVID restrictions. .
They were tough choices, and some worked better than others. Looking at some clear winners, two types of subscriptions consumers prefer to keep despite the cost decided on the option. This is streaming entertainment and…wait for it…pet supplies.
In a December interview with Karen Webster of PYMNTS, Jenny Wolski, senior vice president of Petco and Omnichannel Experiences, said 25 million pet parents in the U.S. paid $19.99 a month for veterinary services, pet grooming, and more. He said he showed no signs of quitting his Vital Care membership, which offers, among other things. $9.99/month for large pets and $9.99/month for small pets.
Wolski said Vital Care “pays for itself,” adding, “Depending on the type of pet you have, the plan can save you hundreds of dollars each year despite paying a monthly fee. can be saved,” he added. With plans to expand its offering to other products and services in 2023, Petco says its data shows no corresponding slowdown in membership for our beloved pet companions.
Still, the latest Subscription Commerce Conversion Index: Subscribers Seek Affordability And Convenience, a collaboration between PYMMTS and sticky.io, notes that “merchant performance as measured by the Subscription Commerce , stalled in September”. ”
Our data shows that free shipping decreased by 4.1% and subscription discounts decreased by 3.1%, while buy button adoption increased to 53% of sites surveyed and BNPL adoption increased to 7%. Did. Final version of the index. ”
These numbers are in the subscription company’s roadmap for 2023 and show strong year-end performance and a clear indication of what the subscription company values in these experiences.
File it under “Words to the Magi”. Sticky.io chief Brian Bogosian told PYMNTS that the key to successful subscriptions in 2023 lies in the “simplicity and streamlining of the process of attracting people.”
“If you have long [process], multiple website pages, logins, passwords, and when you bother, people just give up on things. It’s important to make it easier by taking advantage of the impulse decisions consumers may have about what they want,” he said.
Roy Barak, CEO of Vindicia, told PYMNTS, “Instead of cutting back on content and services, think about ways to cut down on payment failures that lead to passive churn. Personalized subscription bundles. to improve customer lifetime value and increase recurring revenue streams.”
This is reinforced with the latest Subscription Commerce Tracker® a PYMNTS and Vindicia collaboration. Reducing involuntary churn and making the billing process more streamlined will help many subscription brands retain subscribers in his 2023. Doing nothing will definitely cost you.
According to Tracker, “A significant number of consumers dislike the current billing process of various services and providers so much that they are willing to pay extra to improve their payment experience.” of consumers said they were willing or very happy to pay extra for this, including 47% of millennials and 46% of Gen Z. increase.”
Read the report: Subscription Commerce Tracker®
PYMNTS Data: Why Consumers Are Trying Digital Wallets
According to the PYMNTS survey, New Payment Options: Why Consumers Are Trying Digital Wallets, 52% of US consumers will try new payment methods in 2022, with many choosing to try digital wallets for the first time. did.
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