Over a third of Spaniards say they plan to sign up to more subscription services
61% of Spanish subscribers are more loyal and spend more money with the companies they subscribe to
93% of Spanish subscribers spend up to 200 euros per month on subscription services
Travel, entertainment and restaurant subscriptions will grow in 2022, whilst video, audio and retail subscriptions are falling in number
MADRID, Spain, June 1st, 2022: According to a new survey conducted in Spain by Recurly, a leading subscription management and billing platform, 38% of Spanish consumers plan to sign up to more subscription services. The report also revealed that consumers feel more loyal (61%) and tend to spend more money (42%) with brands and companies they subscribe to.
54% of Spanish consumers surveyed say the pandemic made them rethink the subscription services they were using, with streaming video services (78%), food (29%) and retail (23%) currently the most used. However, as restrictions have been lifted, Spanish consumers are now more willing to spend their time and money on domestic (55%) and international (40%) travel, entertainment and in-person events (48%) and dining (40%).
The cost of living is at the forefront of most consumers’ minds with 88% of respondents concerned by inflation, and as a result of the current cost of goods and services 19% say they plan to cancel some services this year. There are still many opportunities for businesses, as forty-two percent plan to keep their current subscription services the same, and 38% of Spanish consumers are planning to purchase more services that offer them the best deals or help them optimise their budgets.
Traditional retailers and in-person businesses look to retain and grow in 2022, capitalising on the loyalty of programs and offerings designed to create recurring revenue through subscriptions. The opportunity to transfer the convenience of subscriptions to these out-of-home experience categories is being eagerly pursued by sectors such as foodservice, hospitality, airlines and in-person events.
"We’re starting to see new categories and subscription concepts emerge, from salons to car washes to restaurants, as people continue their love of subscriptions," said Oscar Wall, General Manager, EMEA at Recurly. "Our research suggests that subscriptions drive recurring revenue, loyalty and growth as consumers establish their new spending habits and behaviours, however, as the impact of inflation looms, it’s important for businesses to anticipate consumer’s subscription behaviours”, concluded Wall.
With 93% of consumers surveyed spending up to €200 a year in subscription services, businesses are doubling down on consumer interest in face-to-face activities. The survey yields the following findings:
51% of Spanish consumers say that having exclusive access to content or services is the main reason for paying for a subscription
Thirty percent say that one of their motivations is the possibility of being able to get a discount on these services thanks to their subscription
Not surprisingly, the categories with the largest subscriber base and growth in the last two years were the streaming video, retail and streaming audio content giants as people took refuge in home entertainment and services. However, they are also the top three categories that consumers surveyed cancelled in the last year.
"Providing exclusivity and creating consumer-driven pricing models for these experiential services is an important factor in successful retention and growth," says Wall.
For millennial and Gen-Z consumers, access to exclusive and engaging content or services is an important driver of subscription popularity, with, on average, 44% of these consumers prioritising it as their primary reason for subscribing. This includes exclusivity on products, content or services, as well as exclusive packages, benefits or discounts. This also leads to greater preference over brands, as these consumers focus more on the types of offers available from a variety of companies, and spend time choosing the services that best suit their needs and desires.
Importantly, younger generations, particularly those aged 18-29, tend to spend more on subscription services than other age groups, with 27% saying they spend between 100 and 200 euros per month on their services.
Subscription models have helped usher in an era of convenience and "set it and forget it" options for consumers. For customers over 45 years old, the ability to receive products on a routine basis and the convenience of the ease of setting up a subscription and recurring payment processes are a major factor in their popularity. In addition, 51% of consumers say that promotions, such as free trials or product samples, are the main drivers for subscriptions and almost 50% expect to earn loyalty points, benefits or discounts as part of the programme.
Against this backdrop retailers and service providers can leverage the key elements of loyalty marketing promotions and trials as an opportunity to gain and grow market share.
About Recurly
Thousands of innovative companies across digital media, streaming, publishing, SaaS, education, consumer goods, and professional services industries rely on Recurly to unlock transformational growth using subscriptions. Recurly’s all-in-one, integrated platform removes the complexities of automating subscriptions at scale by enabling teams to manage and optimize their subscriber lifecycles with ease. Category-defining companies including Sling, Twitch, BarkBox, FabFitFun, Paramount, Lucid, and Sprout Social have chosen Recurly to manage billions of dollars in recurring revenues, future-proof their recurring billing and payment operations, and recover millions in lost revenue due to churn. Founded in 2010, Recurly is based in San Francisco, with offices in Boulder, New Orleans and London. For more information, visit Recurly.com.
About the survey "Impacts and trends of pandemic versus endemic in subscription services".
The survey is based on the results of a web-based survey conducted by Recurly through Survey Monkey in March 2022. the sample size included 2612 respondents aged 18+ who currently subscribe to one or more subscription services.
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