The rise in subscription models has reshaped the way consumers access products and services. Whether it's media streaming services, haute couture, or dating apps, the subscription industry is far from immune to challenges. Today's market has created several hurdles that businesses must overcome to attain growth and customer loyalty.

In partnership with Change Makers, we sat down to discuss how product and growth executives from brands like Yahoo, Farfetch, Disney+, and Bumble, leverage technology to create a frictionless experience that retains and satisfies hard-earned consumers.

Get the report here or continue reading for the highlights.

Current challenges and what can be done

Rapidly evolving technology and changing subscriber preferences require companies to stay agile and continuously innovate to keep their edge. These are key challenges subscription businesses face and the innovative solutions for overcoming them.

The fight against subscription fatigue

Consumers subscribe for several reasons, mainly convenience and attractiveness of a product. However, as time goes by, they might change their perspective of a recurring service—a pressing issue for the industry. 

Subscriber fatigue is a sum up of numerous factors:

  • Engagement: The allure of the service may fade

  • Financial: Consumers spend more than they think

  • Market saturation: Rising competition

Without regular and meaningful interaction, subscribers are likely to lose interest and ultimately cancel. It is essential, therefore, to continually review and strengthen your value proposition.

Complexity in tech stacks & modernizing systems

“I think it’s never been harder to provide a seamless experience. And that a lot is driven by the fragmentation of tech stack and tooling.” –Head of Product Monetization, Pitch

Engagement is often hampered by the range of technologies deployed by providers. A single merchant may use different tech stacks across the delivery channels. This complexity results in a burden on engineering teams.

Businesses must be prepared to innovate and differentiate themselves to maintain or increase market share, but this is no easy undertaking. Transitioning from legacy systems to modern platforms is currently a key goal for many organizations. And while it can be expensive and resource-hungry, it plays a crucial part in enabling innovation, driving growth, and improving the subscriber experience.

Any new system should support multiple pricing and packaging models and the ability to customize the service. Increasingly, there is a demand for consistent levels of service across all channels and technologies. 

Personalization at scale & achieving global consistency

The importance of technology is underlined by the growing requirement to personalize the consumer experience. In the international market, navigating cultural differences and expectations becomes much more complex. 

Balancing a consistent brand experience with customization is challenging. To do it successfully, companies must understand every corner of the customer base to deliver targeted messaging, meaningful interactions, and relevant content offers across demographics and through the customer life cycle.

Organizations must strike a balance between the creation of consistent and identifiable global brands while also catering for local differences. It is essential, therefore, that the technology stack supports local customization.

Differentiation & delivering value proposition

One of the most pressing challenges in today’s subscription market is the need to stand out from the crowd. Differentiation is the key to attracting and retaining customers—and as competition increases, it has never been more important for merchants to improve your value proposition.

Once again, this requires a deep understanding of what customers are looking for, how their expectations are changing, and how that plays out across the various market segments. Merchants must be committed to applying that knowledge to build superior services and unique features.

All of this cycles back to the technology choices. In updating legacy systems and introducing new tools.

Wrap up

The subscription market landscape is increasingly challenging. And the commitment to continuous improvement is the key to standing out in a crowded marketplace.

This industry report highlights the real and present danger that subscriber fatigue represents, and how fragmented technologies make it harder for organizations to overcome. 

Against this backdrop, providers must prioritize the modernization of their systems to enable the creation of globally consistent, customer-responsive brands.