Subscription Economy Paper Published in BE Guide
Our report, “No Contract, No Problem: The Value of Flexibility in the Subscription Economy“, by Dr Benny Cheung, Abbie Letherby and Alice Pearce, has now been published in The Behavioral Economics Guide 2021 from BehavioralEconomics.com.
Across the world, companies are adopting the subscription model to increase sales and create more predictable revenue streams. Given this rise in popularity, we conducted an experiment with a sample size of around 1,400 UK citizens, to investigate subscription services. Our aim was to explore how brands can better acquire and retain subscription customers. We looked at three subscription types (Content, Service, Product) across six different industries (Food, Delivery, Health & Beauty, Music, Fitness, TV & Film) and measured their current appeal and avenues for improvement. Our results highlight key acquisition drivers, including free trials, discount periods and bundles, the success of which is founded in understanding consumer behavioural biases. We also explore the impact of different benefits on churn and how to improve retention.
You can read the BE Guide via the link below: