Subscribers want APMs and personalization, plus news from Spotify
A new Subscriptions Weekly issue is here! This one is all about the importance of payments and personalization in customer retention strategies and how brands can increase their offered value to ensure growth in challenging economic times.
Understanding the importance of subscriptions for modern retailing
Personalization, convenience, and cost-effectiveness have become the default standard of engagement. Customers have grown to expect curated experiences that are tailored to their needs, turning the subscription model into a retail game changer.
However, delivering a positive subscription experience is an immense challenge in terms of redesigning the traditional customer experience. Learn the benefits and challenges of subscriptions in this article from Forbes.
41% of subscribers will cancel a subscription if free shipping isn’t included
Consumers have been cutting back on retail subscriptions for some time, and this trend is likely to continue as they watch their wallets.
62% of subscribers say they use subscription services because of the convenience and cost savings associated with free shipping–and discontinuing it could drive 41% of subscribers to cancel. Additionally, 27% of subscribers state that discontinuing loyalty benefits or the ability to pause or skip would push them away. Read more on PYMNTS.
Payments orchestration helps global platforms grow sales
Never has it been easier for consumers to find a similar product or experience at an alternative vendor, making the risk of an abandoned online purchase the highest it has ever been. Businesses, especially subscription companies, see a growth opportunity in payments.
Payments orchestration improves a business’s overall performance and provides multiple benefits, like reducing declines and countering fraud. 89% of retailers said having multiple digital payment options was essential for customer retention. Learn more on PYMNTS.
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The ethos throughout 2023 is to spend smarter, not harder: 15 marketers on the AA/WARC ad spend growth predictions
UK ad spend is not immune to economic pressures. Performance Marketing World asked their panel of industry experts how marketers can bolster their brands for the challenging times ahead.
Oscar Wall, Recurly EMEA General Manager, states, “As the cost of living crisis persists and minimal growth is forecast for the rest of the year, marketers need to shift their focus to retention and increase the value offered to their customers. Discounts may attract high-intent consumers, but recurring revenue businesses need to invest in exclusive content, explore pricing strategies and deepen brand loyalty. Incentives and bundling can help justify the price and develop long-term customer relationships.” Learn more on Performance Marketing World.
Spotify passes 500M users, but its premium subscriber portion falls to 40%
Spotify now has 515 million monthly active users; however, it represents a ratio of 40% paid-to-free listeners. Its ad-supported user base is outpacing its premium subscribers, possibly due to consumer cost-cutting due to the economic downturn.
Spotify’s figures show that while its income from advertising grew 17% year-on-year, it fell by 27% in the previous quarter due to macro-related variability in the advertising business. Read more on TechCrunch.
From the Recurly blog
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