During the peak of the pandemic, with supermarkets and shopping centres closing their doors and millions of households asked to stay at home, many consumers took to ordering products online. Signing up for subscription-based models became a way of ensuring that they were able to access the goods and services that they wanted and needed. From groceries and meal-planning boxes to coffee delivery services, the businesses already implementing subscription-based models saw an increased demand for what they had to offer. One such business is subscription-based recipe box provider Gousto. During the first half of 2020 alone, they witnessed a 115 percent spike in sales, which enabled them to create 1,000 new jobs as part of an expansion. This success has been echoed by subscription businesses in many different sectors. For example, according to the Royal Mail, the growth of the subscription box economy caused a huge surge in parcel delivery, with 15 percent of adults ordering a paid subscription box online during the first couple of months of the pandemic. This demand for subscription-based services is likely to increase as time goes by. According to a Deloitte / Zuora CPG Subscription Report, consumers who already have a subscription are 2x more likely to get another in the next 3 years. But, as things return to some semblance of normality and restrictions begin to ease, in order to continue to drive this growth and build loyalty within their customer-base, CPG subscription businesses need to place a renewed focus on subscriber experience initiatives.

Creating a seamless and positive experience has never been more important to ensure stability moving forward. But what is it that makes a positive great experience? For consumers, whether in prosperous times or in the midst of a global pandemic, the priority is remarkably consistent: they want subscriptions to deliver real value. But their definition of value is much more than simply a price point. Whilst saving money is important to 72 percent of consumers when signing up to a subscription service, it will often not be enough to make them stay long term. This is because cost alone does not equal a good subscriber experience and is, therefore, not the true driver of subscription decision making. Today’s consumer wants to be put in the driving seat; businesses who ensure both flexibility and convenience are likely to come out on top. For example, the ability to opt-out or even just temporarily suspend a service is seen as a really important factor. Moreover, the fear of being bound to a company or service is enough to put 42 percent of consumers off signing up in the first place. The delivery mechanism for the subscription must also be more convenient than traditional purchasing. It must take the pain out of tackling the high-street but still provide the experience at home for customers. There is a common thread that the most popular subscriptions will save time, deliver to the home, or be something that the customer would struggle to get hold of under normal circumstances.

Taking unique preferences into account is likely to enable businesses to build a better relationship with their customers, encouraging a longer commitment and lessening churn. In fact, research from the Subscribed Institute on subscription changes recently discovered that, for companies where one in 10 subscriptions has a change after the initial sign-up (for example, an upgrade, downgrade, or add-on), the growth rate more than doubles to 20 percent YoY revenue growth. Once these models are adopted, focusing on adding value and improving the overall experience for customers will prove critical for building and retaining loyalty long term. Getting ahead of the game and tapping into the subscription economy now will not only help organisations to bounce back following the global pandemic, it could help ensure future success. However, in order to capitalise on the changes in consumer behaviour and come out on top, businesses need to focus on adding true value and improving the overall experience for customers. Instilling the right blend of flexibility, convenience, and customisation for those using a product or service could help your business boost profitability further down the line.