Consumer Behavior
UK consumers loving retailer subscriptions
March 29, 2021
The ongoing pandemic, home lockdowns and ensuing sad moods are driving the retail subscription market in the U.K. Just about one in five U.K. consumers have signed on for a subscription app, such as Netflix or Spotify, and the biggest adopters are those in the 16- to 24-year-old age bracket, according to data related by research firm Emarsys.
Prime drivers for adoption include relaxation and handling loneliness, according to a press release on the findings. Physical subscription services — those that deliver alcohol, food, beauty products more usually on a monthly basis — are also growing, with nearly one in five (17%) consumers now saying they have signed up to a monthly subscription service for products.
Food subscription services are the most popular, accounting for nearly one-third (29%) of physical subscription buyers, followed by beauty and grooming (20%), alcohol (10%) and health and fitness products (9%).
In terms of reasons for this growth, nearly 30% of consumers say it feels nice to receive something every month in the mail and 22% say they like the surprise of not knowing what they'll receive each month.
"Part of the reason both physical and digital subscriptions have done well is because most of them are delivered through a mobile app — and consumers have become even more attached to their mobile devices during lockdown. The challenge for brands that offer these services now though is to retain these new customers once lockdown restricts lift. The key to doing that is to remain relevant to those customers, which means personalization, personalization, personalization. Traditionally, offering a personalised experience on mobile was challenging, but now technology exists that can help brands offer a one-to-one tailored experience for each and every customer based on their exact preferences and needs," Chris Godderidge, VP mobile, Emarsys, said in the release.
