Access represents the smallest percentage of those people who use subscription services. For those that subscribe to one or more services because of access, the two main motivating factors are lower prices and access to members-only perks and benefits. Food and apparel make up the bulk of the population, according to this study.
When it comes to access, probably the most powerful word that can be used from a marketing and promotional perspective is EXCLUSIVE. Check out this article on how to make your brand and company appeal to those who are seeking a more unique experience.
Access subscription services rely very heavily on word of mouth and recommendations from one friend to another, with 24% of survey respondents citing it as their primary motivation. Right behind it with 23% however, is the concept of trying something new.
As with curation, an extremely high sense of personalized service is crucial to the success of any access subscription model. Responsiveness, outstanding customer experience, and urgent marketing messages are key here in attracting and retaining new subscribers.
To summarize, with all three of the different types of subscription models, this segment is growing at a pace of over 100% year over year and has forecasts to trend at that rate for the next several years. People in the age range of 25-44 are the highest consumers, with income ranges from $50, 000 – $100,000 annually, and the majority live in the northeast. This also indicates that there are growth opportunities in other parts of the country, and with other age ranges if the product categories can fill the niche needs of other populations.
Churn continues to be the biggest challenge to all the subscription models, with nearly 40% of subscribers ultimately cancelling their subscriptions. This means that retention efforts must be front and center for any organization to thrive. Competition will continue to increase with new players entering the market every day.
Stay tuned as the constantly changing landscape of this exciting emerging industry continues to evolve. As always, we are here to be of service to you in any way that we can.