Fintech
Minna Technologies finds that subscription services are lagging behind consumer expectations
According to a new report from Minna Technologies.
New Research from Embedded Subscription Management Company – Subscription economics: evolution, not revolution – suggests that consumers are increasingly seeking greater flexibility in their subscriptions, such as the ability to pause services and manage multiple subscriptions in one place.
The Minna studio, in collaboration with management consultancy companies FT Strategies and global market research firm Savannah, highlights a growing gap between what consumers expect from their subscriptions and what companies are offering.
Savanta interviewed 103 corporate subscription decision makers in the United States, including board members, C-level executives, CEOs, directors and owners, of companies that sell products and services to consumers who use subscriptions.
Subscription Information
67% of subscription companies believe that changing customer demand will be the main factor impacting their profitability over the next 10 years, followed by technological innovation (52%).
Subscribers increasingly expect greater flexibility, with 73% wanting to manage multiple subscriptions in one place and 39% looking for pause functionality, although only 50% of US companies currently offer it.
While 46% of consumers would rather change their plan than cancel it, cutting potential cancellations in half, 80% of Gen Z and Millennials want consolidated management and 45% would switch banks for this feature.
Despite these challenges, businesses have the opportunity to adapt through technology, with 93% recognizing the critical role of AI in customer service and loyalty and 83% planning to invest in AI to improve user experience and personalization.
“It is no longer a static, one-size-fits-all proposition, but a continuous exchange of value,” he said Amanda Mesler, president and CEO of Minna Technologies. “Businesses need to focus on improving flexibility, convenience and control for customers. Customer demand for consolidation has led to the emergence of new channels to manage subscriptions, such as banking apps and aggregators.”
Ben Catterall, vice president of solutions consulting at Aptitude Software, further added: “Continuous experimentation and flexibility, exploration of product diversification, hybrid paid content models and alternative formats are becoming increasingly important. Flexibility is crucial; Refining subscription models to give subscribers more choice and control is essential to developing sustainable recurring revenue strategies.”