Convenience, freedom of choice and flexibility are the main drivers behind the rise in the use of subscription services, a new study conducted by Cuvva reveals. To uncover ways in which the subscription economy boom that happened over the past year has changed the way people perceive subscriptions, Cuvva surveyed 2,000 Brits about subscription services.
While most people have up to 4 subscriptions (79%), research indicates that 1 in 5 Brits pay for over 5 subscription services. Compared to February 2020, 39% of respondents said they have more subscriptions in February 2021.
Overall, monthly subscriptions are looked at favourably by Brits with 63% of respondents preferring to have the flexibility to cancel anytime than pay a reduced fee for an annual contract. Entertainment subscriptions such as Amazon Prime and Netflix surged the most during the pandemic (61%), followed by music (23%) and food & drink (16%).
When it comes to reasons why Brits use subscriptions, convenience tops the list with 45% of respondents opting for it, followed by a third who find freedom of choice and flexibility (33%) their priorities. For some (30%) the option of paying monthly represents the most appealing feature. This might be due to 1 in 4 Brits (27%) finding themselves in a situation where they paid an annual fee for a subscription service they cancelled before the twelve-month period ended. The research suggests that besides entertainment services that amount to 52%, technology (41%) and health & fitness annual subscriptions (40%) tend to be the hardest to get out of.
The biggest shift in attitudes is noticeable when it comes to financial services such as insurance, banking and investment that have previously been perceived as more traditional. The study suggests that 2 out of 3 respondents would feel comfortable paying for financial services in a form of a monthly subscription.
Loren Gould, marketing director at Cuvva said: “Not only has the shift towards a subscription economy influenced the way we shop, it’s also shaped people’s perceptions of services they are willing to sign up for. With convenience and flexibility at the centre of consumers’ mindset, there is no doubt that businesses across the board will need to adjust and put customers’ needs first – and financial services such as car insurance are no different. Locking people into annual contracts is a thing of the past and we will continue to see a sharp rise in monthly subscription services that offer people a wider pool of choice and control.”
The research suggests that subscriptions are here to stay with 2 in 4 respondents being likely to subscribe to new subscription services in the future on top of the ones they currently have.
For more detailed findings and expert analysis, please visit: https://www.cuvva.com/how-insurance-works/the-subscription-revolution