Westminster eForum: Priorities for digital competition and growth in the UK
In today's fast-paced technological landscape, the digital sector plays a significant role in the UK's economy, but it also brings new challenges for businesses–especially in the subscription industry.
Subscriptions are a growing industry. In fact, the subscription economy is projected to hit $1.5 trillion by 2025. It’s a business model that benefits both consumers and companies–giving users the convenience and value they seek while helping brands get predictable, steady revenue.
Now, recurring services tend to be subscriber-centric, flexible, and convenient. In the UK, for example, the average amount spent on subscription services is around £49/month, but subscription fatigue is slowly creeping into Britons' homes.
The Digital Markets, Competition and Consumers Bill aims to provide the rights for consumers to cancel subscriptions during cooling-off periods and give the Competition and Markets Authority (CMA) power to enforce consumer protection laws directly.
Under these new rules, brands must:
Provide clear information before they enter a subscription contract
Send reminders about renewals or free trial periods ending
Ensure consumers can cancel in a straightforward, cost-effective, and timely way
What does this mean for your business? How can you protect consumers whilst allowing your business to thrive?
Guy Meyers, Recurly Regional Director of Customer Success, can guide you.
During the Westminster eForum, a series of senior-lever conferences that seeks to improve the debate on public policy developments and create opportunities for informed discussion, he addresses some of the best practices and tools subscription businesses can leverage to follow the bill’s new rule–and deliver the seamless experience consumers want.
Watch Meyer's participation, or continue reading to discover interesting subscription consumer insights.
Subscribers want free trials
According to the State of Subscriptions: What consumers want, 75% of customers would subscribe to a service if a free trial is offered.
Free trying periods allow cautious customers to test before they buy and experience its value first-hand. Additionally, they help build brand trust, increase conversion rates, and improve the customer experience.
Within this brand trust and enhanced customer experience, you must be clear about your product offering and the free trial specs and communicate to your subscribers the ending date of the trying period–giving them the time to decide whether they stay or go.
Subscribers want pausing options & easy cancels
And just as subscribers look for easy sign-ups, they also seek easy cancellations (77%) and options to pause their service (71%).
It may sound counterproductive–to think of cancellation during sign-up, but beyond the action of churning, consumers want the flexibility to choose how they use your product.
Give customers convenient ways to manage their subscriptions according to their changing circumstances. By pausing their plan temporarily, they can easily resume it without going through the sign-up process.
Subscribers want simplified communications
Subscriptions are like relationships, and communication is key to making them work. However, more communication isn’t always better.
According to our research, 1 in 3 consumers would like to receive email communications once per month. So, keep it to the important stuff–like their plan renewal and upcoming payments–and avoid flooding their inboxes.
As the industry and customer demands evolve, subscription businesses must evolve with them.
From sign-up to renewal, consumers want a seamless experience that puts them in the driver’s seat. Learn how to do so with the State of Subscriptions: What consumers want report–a global survey from over 6,000 consumers about what they look for in subscription services.
Download to get more insights on how:
Tailored experiences create an ideal journey that keeps subscribers engaged and satisfied.
Powerful strategies like payment options, flexible plans, and captivating free trials attract new subscribers and turn them into loyal customers.
Loyalty rewards and intentional communication can build lasting relationships that maximise customer lifetime value.