A notable effect of the digitisation of supply chains has been the rise of the subscription economy. Powered by scalable cloud infrastructure, enterprising businesses can deliver cutting edge products and experiences directly to consumers, disrupting retail stores and other established channels.

Painting a picture of the demographics that sign up most enthusiastically to this new marketplace is this infographic from Shorr Packaging Group. Surveying 500 shoppers in the US, the subscription economy appears to tick boxes when it comes to customer service. An average subscription length of 125 days, however, shows a larger challenge of long-term customer retention.

Insights include:

  • The average monthly spend on a subscription service is US$34.
  • Most consumers partake in one or two services – only 13% subscribe to three or more.
  • The top reason for cancelling a subscription service is value for money.
subscription economy

 

Source: Shorr