Amsterdam · October 23rd, 2024
40% of consumers globally consider pushing the ‘unsubscribe’ button says Adyen research
Consumers are signed up to an average of three subscriptions, paying $19 for each service
Film and TV services are the most popular subscriptions globally (71%), followed by music streaming platforms (52%)
Though consumers are looking to save, 77% of businesses say they are investing in their subscription services, with 44% expanding the model to new product lines and services
New research published today by Adyen, the global financial technology platform of choice for leading businesses, reveals 40% of consumers have already, or are planning to, unsubscribe from services and products they’ve set up recurring payments with over the next 12 months.
The data published in Adyen’s inaugural Global Digital Report, confirms that people across the 23 countries polled continue to be impacted by the high cost of living. In addition to this it highlights the need for businesses to offer personalized services for their subscriptions to remain an essential monthly spend.
People are, on average, signed up to three subscriptions, spending $19 per subscription a month. An overwhelming majority of consumers (80%) are signed up to a subscription globally, though Adyen's research shows which digital subscriptions people have decided to, or are considering, unsubscribing from: Movies/TV (17%), music (16%), priority services (16%), food delivery (15%) and gym membership (14%).*
But despite analysis finding consumers looking to save by unsubscribing, the vast majority (77%) of businesses said that they will be investing in repeat purchase models over the next year. Almost half (44%) said that they are expanding their offers to include new product lines or services, demonstrating what a valuable revenue stream subscriptions are.
“Earning a customer’s repeat purchase has to be won month-in month-out by a business looking to tap into a subscription model. Businesses are under immense pressure to demonstrate revenue growth, but it’s important that lasting relationships are built on an understanding of customer preferences and expectations if they are to translate into anything meaningful for the company’s bottom line,” said Trevor Nies, Senior Vice President and Global Head of Digital at Adyen.
“Every detail must be considered, and that’s across the customer lifetime value,” added Nies. “Consumers will only subscribe if the service is exceptional or considered essential, and if the product is beautiful and provides something that can’t be accessed elsewhere. But also people want the process to be easy and the payment process to be frictionless. We often find that businesses can be working more seamlessly with payment providers to ensure details are current and kept secure to greatly decrease the likelihood of monthly declines.”
How to do subscriptions right
Adyen’s research found consumer demands for improved subscription services across three main areas.
1. A personal experience
While consumers value the convenience offered by online businesses (49%), personalization is a must. A subscription is an investment and a commitment, so rewards are expected. Consumers said they liked to receive personalized offers (22%) and would stay loyal to an online business if the experience was personalized for them (18%).
2. Loyalty nurtured
With so many online businesses, it can be hard to differentiate. Consumers said that great customer service would make them more loyal to an online brand (42%), followed by personalized discounts (40%) and easy cancellation and refunds (37%).
3. Diverse payment options
While the primary payment option globally is via a credit card (45%) or debit card (40%), 29% of consumers wish to pay via direct debits and almost the same amount look to pay with a digital wallet such as Apple Pay or Google Wallet (27%). Over one third (36%) of consumers would be more loyal to a brand that made it easier for them to pay.
Notes to Editor
*The percentage of people who have decided to, or are considering unsubscribing from certain subscriptions are a percentage of those who hold such subscriptions in 2024. The following percentage of respondents globally said they hold subscriptions for: Movies/TV (71%), Music (52%), Priority services (52%), Food delivery (34%), Gym memberships (35%), Weekly food subscriptions from grocery stores (29%). E.g. of the 77% of people who hold subscriptions for Movies/TV, 17% say they have decided to or are considering unsubscribing.
About the research
Consumer research
34,371 consumers aged 18+ in Australia, Hong Kong, India, Japan, Malaysia, Singapore, Belgium, Denmark, France, Germany, Ireland, Italy, Netherlands, Norway, Poland, Sweden, UAE, UK, Brazil, Mexico, Canada, and USA.
Survey conducted between 03 June 2024 – 19 June 2024
Digital industry research
8,822 digital merchants across Australia, Hong Kong, China, Japan, Malaysia, Singapore, Belgium, Denmark, France, Germany, Ireland, Italy, Netherlands, Norway, Poland, Sweden, UAE, UK, Brazil, Mexico, Canada, and the USA. Those polled were senior leaders at businesses with insight into business revenue and strategy.
Survey conducted between 31 May 2024 – 19 June 2024
About Adyen
Adyen (ADYEN:AMS) is the financial technology platform of choice for leading companies. By providing end-to-end payments capabilities, data-driven insights, and financial products in a single global solution, Adyen helps businesses achieve their ambitions faster. With offices around the world, Adyen works with the likes of Meta, Uber, H&M and eBay.