Brands rely on subscriptions & personalization in 2023
Happy Friday, welcome back to Subscriptions Weekly! In this edition, we review why subscription brands are making it easier for consumers to cancel, the decrease of video streaming subscribers and increase of audio streaming users, how brands will approach customer loyalty in 2023, and what questions CFOs should ask when choosing subscription KPIs.
Why subscription brands are making it easier to cancel
Last week, the Consumer Financial Protection Bureau issued new guidance to companies warning against automatic renewals without express cancellation by subscribers.
Theresa McEndree, Recurly’s CMO, states this is a timely reminder that transparency is key in customer-brand relationships. Additionally, subscription businesses need to be flexible with customers’ needs–regarding pausing options, payment methods, promotions, etc. Learn more on Moder Retail.
Video streaming subscriptions fall by 2M in UK
After demand had picked up again during Christmas, people quickly looked to cut back on costs due to inflation, making paid-for-video streaming subscriptions in the UK fall from 30.5 million to 28.5 million.
How can subscription businesses set up for success amid challenging economic times? The State of Subscriptions report provides the acquisition, growth, churn, and payments insights you need to design a compelling growth strategy.
Spotify surpasses 200M paid subscribers
Spotify’s premium subscribers increased to 205 million as of December 31st, representing a 14% increase year-on-year.
The earnings release comes after a layoff announcement affecting 6% of its workforce. But similar to other tech companies facing the same economic downturn, Spotify’s earnings suggest its financial situation hasn’t significantly worsened in recent months. Read more on The Verge.
How brands will approach customer loyalty in 2023
The cost-of-living crisis is making consumers more considerate with purchases. That’s why in 2023, retailers need to focus on retention over acquisition. Personalization, subscriptions, social media, and first-party data play a major role in achieving this.
Oscar Wall, EMEA General Manager at Recurly, shares “consumers will lean on the subscription model as a means of payment to avoid any additional costs and spread budgets during the economic downturn.” Read more on Internet Retailing.
5 questions for CFOs before selecting subscription KPIs
If you’re considering turning to subscriptions to increase retention in 2023, you may need to sign up for a new set of key performance indicators (KPIs) to demonstrate the strength of your recurring customer base.
For KPIs that effectively inform investors and show subscription strength, ask these five questions:
Are you selecting the right KPIs that align with your company’s operating model?
Can your KPIs be operationalized?
Are the KPIs consistently measured across each area of your business?
How will you ensure KPI accuracy if your strategy, structure, or investments change?
Did you select relevant KPIs that effectively communicate your story?
Netflix shares new password-sharing restrictions
In aiming to keep password sharing within a household, subscribers will need to set a primary location through their TV. All accounts and devices should be connected to the same Wi-Fi as the TV. The brand details that users would have to pay an extra fee to use the streaming service outside the household for extended periods of time. Learn more on TechCrunch.
Join Recurly at these exciting events
On-demand: 5 critical revenue recognition must-haves for subscription businesses. You can’t manage subscriptions at scale without getting revenue recognition right. Recurly finance experts discuss the challenges of accounting for recurring revenue. Watch now.
On-demand: The 2023 State of Subscriptions webinar. Set your team up for success with insights from more than 2,200 global brands. Learn the upcoming industry trends and consumer demands. Watch now.
On-demand: Recurly platform demo and Q&A. See first-hand how you can reduce churn, maximize revenue, boost growth, and improve payments with Recurly. Watch now.
From the Recurly blog
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