Heavy Reliance on Subscription Services

A study conducted by Expert Market Research on subscription usage reveals shocking results as over 30% of respondents have been subscribed to services for over 3 years, only 13% are subscribed for 2 to 3 years, respondents subscribed for 1 to 2 years are 21%. Whereas 33% of respondents have been subscribed for less than 1 year. This article also discusses about the gaps and opportunities in the market which new businesses can use to succeed.

Subscription service industry is built on trust and loyalty as it excepts subscribers to keep paying month after month for the services they provide. An extensive survey done by Expert Market Research which surveyed over 50000 respondents from every major metro city across India reveals just how long do customers actually stay subscribed to business offerings.

How Long Have You Been Using Subscription Services

The study clearly shows that brand loyalty exists as over 30% of the respondents have been subscribed to platforms for over 3 years! Whereas only 13% of consumers have been subscribed for 2 to 3 years indicating a big gap between the otherwise close time periods. This discrepancy suggests that while a solid base of long-term subscribers exists, there is room for improvement in retaining customers beyond the two-year mark. 

Additionally, 21% of respondents have been subscribed for one to two years, reflecting a healthy level of loyalty within this duration. This group represents a significant portion of subscribers who have demonstrated a commitment to the brands they support. However, the data also shows that over 33% of respondents have been subscribed for less than one year, with 18% of these having subscriptions for less than six months. This high turnover rate within the first year is further explored in Expert Market Research's study on Factors Influencing Service Subscriptions.

Consumers Subscribing To Services Tend To Rely On Services 

The study underscores the importance of understanding the factors that drive both long-term loyalty and early cancellations. For instance, the higher percentage of subscribers with less than six months' tenure highlights the critical need for businesses to focus on initial engagement and value delivery. Providing exceptional user experiences, personalized content, and transparent pricing from the outset can significantly enhance retention rates.

Moreover, the impact of the lockdown during pandemic on subscription trends cannot be overlooked. The study points out that the three-year subscription figure might be slightly inflated due to the pandemic, during which people subscribed to various platforms for entertainment and essential services. This period saw a surge in new subscriptions, as consumers sought ways to cope with the lockdown. Expert Market Research offers another study analysing the impacts of COVID-19 and how businesses can leverage these insights to achieve success in the competitive landscape.

Usage of subscription services has always been a point of concern for businesses but as our survey shows there are definitely many enterprises who have earned the trust and loyalty of their customer base. For new entrants to establish themselves in this market by disrupting market leaders is a huge challenge which Expert Market Research also helps overcome by providing valuable insights into this industry.