The key to retention: Payments, transparency & bundles
Welcome back to Subscriptions Weekly! In this issue, we review millennial consumer preferences and how subscription businesses can find growth opportunities in payments. We check the FTC’s new proposal for easy subscription cancelations and The New York Times’ successful retention strategy. Lastly, we share updates from Meta, Subway, and Paramount+.
61% of millennials want real-time payments—the challenge is acceptance
Now more than ever, speed differentiates a good payment experience from a bad one in the eyes of consumers.
According to PYMTNS, four in five Americans are interested in faster payment options when paying businesses for goods and services, and 61% of millennials and 59% of bridge millennials say they are highly interested in real-time payments.
Additionally, digital wallets are set for a meteoric rise. While 40% of the world's population used a digital wallet in 2022, experts predict that nearly 65% of global consumers will leverage them by 2030.
Subscription companies see an opportunity in alternative payment methods. According to our State of Subscriptions report, Recurly merchants saw a 119% revenue lift by enabling PayPal and a 154% revenue lift by enabling SEPA.
Download the full report to get more insights into the subscription economy and learn how to recession-proof your business with the right strategy across the subscriber lifecycle.
FTC introduces proposal to make U.S. subscriptions easier to cancel
The U.S. Federal Trade Commission (FTC) is trying to make it easier for customers to cancel subscriptions and memberships. This proposal requires companies with recurring payment programs to offer easy cancelation options, new requirements for additional offers upon cancelation, and reminders of automatic renewals. Learn more on The Guardian.
The New York Times eyes better retention for games in subscription drive
Gaming can be a slippery slope to cost cuts and dashed dreams for news publishers nowadays. But it doesn’t have to be. The New York Times’ Wordle game was played over two billion times last year and brought in “tens of millions” of new users.
A notable amount of NYT’s current subscribers are paying for games as part of a wider bundle. The more bundles sold, the higher the average revenue per subscriber.
Someone who pays for Games brings in $5 a month, or $40 a year, whereas someone who pays for the “All Access” bundle brings in $4 every month for a year and then the standard rate of $25 a month from then on. Read more on Digiday.
Check out the new subscription services in the market
Meta launches paid verification in the U.S.: Meta Verified allows users to add the blue check mark to their Instagram and Facebook accounts for $11.99/month on the web and $14.99/month on mobile. The subscription service includes exclusive stickers on Stories and Reels and 100 Stars a month to support Facebook creators. Learn more on TechCrunch.
Subway relaunched the ‘Footlong Pass’ in the U.S.: The multinational quick-service restaurant (QSR) giant has brought back its Footlong Pass subscription–which gives customers 50% off their footlong sub purchase up to once a day for 30 days for $15. Incentivizing consumers allows the restaurant to drive loyalty and embed the brand more deeply in their lives. Read more on PYMTNS.
Paramount+ to launch mobile-only subscription in Mexico & Brazil: This new offering is part of Paramount+’s strategy to scale. Subscribers can stream content on one mobile device or tablet simultaneously, uninterrupted and without ads. The Basic Plan will launch in Brazil for 14.90 reais ($2.82) and in Mexico for 79 pesos ($4.18) monthly. Learn more on Variety.
Join Recurly at these exciting events
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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.
From the Recurly blog
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