Product subscriptions have gained a new relevance during the pandemic, a time when in-store shopping has faced concerns around health and safety. However, when we move beyond the pandemic will this behaviour stick?
There are two types of product subscriptions: replenishment, which is the restocking of essentials such as household supplies and personal care products aimed at offering convenience. For example, Amazon Subscribe & Save. The second form is box subscriptions, which allow users to try new products with a new variety curated and shipped at a regular interval. For example, HelloFresh.
Product subscriptions have seen an increase in usage since the beginning of the pandemic, with Replenishment services rising by 56%, while box subscriptions rose 62%.
Our research found the primary driver for consumers to sign up to product subscriptions was the convenience of home delivery at 44%, up from 14% prior to the pandemic. Similarly, 32% signed-up because it is a safer way to shop, 28% for the free shipping and 22% so they’d know exactly when the product would arrive.
To learn more of what our research uncovered and understand what this means for subscription models, read A casual flirtation or a committed relationship: Assessing post pandemic stickiness of product subscriptions.
KEYS: STANDING OUT FROM THE CROWD, Making Your Mark in the Moments That Matter [Webinar recording]
This session sees us explore how we can cut through the noise and ensure the product, service or experience we are offering stands out at those moments that really matter. Our experts will be sharing our latest analysis of how consumers react in different contexts - and reflecting on the implications.