We’ve all heard of them and there is a strong probability that you’ve got a few yourself. Subscriptions services are a convenient and safe way to get what you need, and it would appear that a large chunk of the UK agrees with this.

During lockdown retail subscriptions jumped 50% with food boxes, wine and grooming leading the way.

Recent research has shown that UK consumers now have on average seven subscriptions per household, spending around £46 a month or £552 a year.

I can attest to this myself. During the lockdown, I found myself in a situation where I was going to be consuming more coffee at home every day and a search led me to Grind, a coffee house in Shoreditch that offers a Nespresso compatible capsule of their awesome coffee delivered straight to my door as often as I want it. This was followed with a subscription to Gillette and their razor blades, a whole bunch of hygiene products like toothpaste and mouthwash through Amazon’s subscribe and save service and a subscription for clothes with Stitch Fix.

And as you can imagine a bunch of savvy retailers have jumped on this growing trend. Around a fifth of UK retailers have launched a subscription service during the lockdown, adding to the 30% of retailers that already had them in place.

It comes as little surprise that entertainment subscriptions lead the way but food and meal subscription services such as wine tasting kits and meal boxes are the second most adopted while health, wellbeing and grooming are also on the rise.

In research conducted by Barclaycard, it was found that 8 in 10, that’s 82%, of retailers believe the popularity of subscription services increased during the lockdown as shoppers saw it as a way to take advantage of a safe and convenient way to receive everything from essential items such as groceries all the way through to entertainment.

April saw a 50.2% increase year on year on digital content and subscription services showing that consumers are started seeing this as a reliable model during their lockdown period at home. And as mentioned before those savvy retailers jumped on the opportunity. 10% of retailer launched their first subscription service between March and June this year.

 

It’s About Creating Reoccurring Revenue

The research went on to find that 75% of retailers believe subscription services offer a more reliable and predictable source of income than a one-time charge model. Around 9 in 10 or 87% think subscription services allow their business to keep up with competitors or other brands that launch similar products and 82% also said that subscription services allow them to build customer relationships through increased contact.

By getting customers to sign up to a subscription service you’re allowing your product to become part of their routine. It becomes an expected part of the way they live their lives and for the most part, they stop looking at special offers or being distracted by competition for those products. As long as your product continues to shine through speedy delivery and always awesome quality, you’ve got a pretty good bet that you’re going to have a customer for life.

The top 5 reasons why consumers said the sign up for a subscription service are:

  • 52% – Exclusive content
  • 53% – Convenience
  • 48% – A personalised offering
  • 51% – Discovery of new brands or products
  • 44% – They make great presents

Kirsty Morris, the Managing Director for Account Development at BarclayCard payments said “Subscription services provide an exciting opportunity to engage consumers with products and services at home, whether that’s digital content or streaming services, meal kits, or more personalised offerings such as bespoke alcohol kits or on-demand exercise classes. For many retailers, this has meant adapting quickly to offer new products and services to respond to the growing demand.”

Mary Portas, Retail Consultant, Broadcaster and ‘Queen of Shops’ said “Subscriptions were already a vital tool for UK retailers prior to the pandemic, helping businesses to remain nimble and transport their product or experience direct to their customers’ homes. Due to the prolonged period of lockdown, the public has grown accustomed to the range of products on offer, as well as the ease at which they can be regularly surprised and delighted by the brands they care about.”

 

Offering Subscriptions, The Right Way

 The key is finding something that is going to get you noticed and offering something different to what others are already doing.

You know your products and your existing loyal customer base. What keeps them coming back and shouting your praises? Can it be packaged and offered to new customers, as well as those loyal existing customers in a way that is going to surprise and delight them and deliver your brand experience every time?

These are the things that need to be considered but you shouldn’t forget the first experience they’re going to have with you and that is your website.

Have you explained the offer in easy to understand steps and highlighted how the process is going to make your customers lives easier and more convenient? Are you doing a good job of explaining what they’re going to get and how often they’re going to get it and at what cost?

Then you need to consider the sign-up process, the editing of an existing subscription and the ability to find information if they’ve got a question. Is your existing payment provider optimised to be able to take reoccurring payments and deal with situations like credit cards that expire? Some things just get forgotten about when anyone starts to plan for new products coming to the market, but that is where we come in.

At Eclipse we’ve helped retailers take on new markets across the globe and expand their businesses into new areas with things like Market Place Integrations to their existing sites and the development and roll-out of some of the latest technologies including AR.

We know what makes a customer tick and we can help you launch new subscription products to the world. Creating a unique UI, UX and CX for every visitor as well as ensuring the backend is geared up and ready to make the process of buying and maintaining subscriptions, including the reoccurring payments, a breeze for you and your customers.

We’ve got teams of experts that can help in just about every area you can think of when it comes to selling things online and creating truly brilliant digital experiences, and they love talking to people and solving problems.

All you have to do is reach out to us and we can have a chat. We’re positive we can do great things together.