UK public: cost of living crisis wont make us cancel our subs
- Friday, July 7th, 2023
- Share this article:
Almost three quarters of UK consumers would rather pause their subscriptions than cancel, says a new study.
The research by Minna Technologies found that even a cost of living crisis wont stop people from paying their monthly fees for TV, the gym, media and so on.
Minna’s inaugural Subscription Economy: Business Barometer report reveals that more than nine in ten (92 percent) of subscription businesses admit that inflation is a threat to their business. But it found that consumers remain much more likely to upgrade their subscriptions rather than cancel.
It found that 61 percent of subscription companies offer users a pause option while a further third plan to introduce this functionality in the next 12 months.
In fact each month 25 percent of users change their subscription, with account upgrades being the most common switch. 86 percent of subscribers say they would consider accepting a new offer on their subscriptions rather than cancel. 72 percent would rather pause their subscriptions than cancel.
And despite the financial pressures, many consumers opt to return to paid subscriptions just months after quitting. The report revealed that a fifth of users resubscribed within six months for 60 percent of subscription businesses. This is known as the ‘churn and return’
Meanwhile 54 percent of subscription businesses have seen subscriber numbers increase by more than a fifth over the last 12 months. In the UK, its 46 percent.
Amanda Mesler, Chair and CEO of Minna Technologies, said: “For most subscription businesses, customer retention across all their channels, including native apps, banking apps and app stores, is a higher priority than acquisition. Subscribers can benefit from enhanced flexibility, convenience and control, unlocking greater value from their subscriptions – essential in the cost of living crisis.