Subscription Economy: Business Barometer Report

Minna Technologies, in partnership with FT Strategies and global research firm Savanta, has launched the Subscription Economy: Business Barometer Report. This comprehensive report provides data, trends, and insights on the subscription economy based on a survey of over 100 senior UK and US subscription business executives and thought leaders from various industries.

The report highlights the importance of retention in the current economic climate, as businesses face challenges such as inflation and changing consumer preferences. It reveals that a single-digit change in retention can have a double-digit impact on customer lifetime value, making retention strategies crucial for revenue growth.

The research also shows that companies are facing subscriber churn, with an average of 25% of customers churning monthly. To reduce churn, the report recommends re-engaging inactive subscribers and offering seamless cancellation and resubscription options.

Investment in first-party data and the use of AI for enhanced personalization are identified as strategic priorities for subscription businesses. The report highlights the potential of AI and data in offering personalized financial services and managing spending efficiently.

Furthermore, the report suggests that businesses should diversify their product and service offerings to remain competitive. Media companies, in particular, are reinventing themselves and diversifying revenue streams to adapt to the digital-first world.

An omnichannel approach is recommended to place the customer at the center of all interactions and deliver a consistent brand experience. Payment optimization is identified as a key growth driver, with digital wallets and alternative payment methods on the rise.

Finally, the report emphasizes the importance of engaging subscribers across direct and indirect channels. Acquisition channels such as app stores, in-app purchases, and partnerships with other subscriptions are deemed effective in driving engagement and loyalty.

Despite the challenges, subscription-based models remain resilient due to their alignment with consumer preferences for flexibility, convenience, and control. Businesses that provide a flawless, personalized, and omnichannel customer experience will succeed in driving long-term engagement and loyalty.