Research and key insights released by Adyen (ADYEN:AMS), the global financial technology platform of for international businesses, reveals 40% of consumers have already, or are planning to, “unsubscribe” from services and products they’ve set up recurring payments with over the “next 12 months.”
The data shared in Adyen’s inaugural Global Digital Report, confirms that “people across the 23 countries polled continue to be impacted by the high cost of living.”
In addition to this it highlights the need for businesses to offer “personalized services for their subscriptions to remain an essential monthly spend.”
As stated in the report from Adyen, consumers are now, on average, signed up “to three subscriptions, spending $19 per subscription a month.”
A majority of consumers (80%) are signed up to a subscription globally, though Adyen’s research shows which digital subscriptions people have “decided to, or are considering, unsubscribing from: Movies/TV (17%), music (16%), priority services (16%), food delivery (15%) and gym membership (14%).*
But despite analysis finding consumers looking to save by unsubscribing, the vast majority (77%) of businesses said that they “will be investing in repeat purchase models over the next year.”
Almost half (44%) said that they are expanding their offers to include new product lines or services, demonstrating what a valuable revenue stream subscriptions are.
Adyen’s research found consumer demands for improved subscription services across three main areas.
1. A personal experience
While consumers value the convenience offered by online businesses (49%), personalization is a must.
A subscription is an investment and a commitment, “so rewards are expected. Consumers said they liked to receive personalized offers (22%) and would stay loyal to an online business if the experience was personalized for them (18%).”
2. Loyalty nurtured
With so many online businesses, it can “be hard to differentiate. Consumers said that great customer service would make them more loyal to an online brand (42%), followed by personalized discounts (40%) and easy cancellation and refunds (37%).”
3. Diverse payment options
While the primary payment option globally is via a “credit card (45%) or debit card (40%), 29% of consumers wish to pay via direct debits and almost the same amount look to pay with a digital wallet such as Apple Pay or Google Wallet (27%).”
Over one third (36%) of consumers would be more loyal “to a brand that made it easier for them to pay.”
The percentage of people who have decided to, or are “considering unsubscribing from certain subscriptions are a percentage of those who hold such subscriptions in 2024.”
The following percentage of respondents globally said they “hold subscriptions for: Movies/TV (71%), Music (52%), Priority services (52%), Food delivery (34%), Gym memberships (35%), Weekly food subscriptions from grocery stores (29%). E.g. of the 77% of people who hold subscriptions for Movies/TV, 17% say they have decided to or are considering unsubscribing.”
About the research:
Consumer research
34,371 consumers aged 18+ in Australia, Hong Kong, India, Japan, Malaysia, Singapore, Belgium, Denmark, France, Germany, Ireland, Italy, Netherlands, Norway, Poland, Sweden, UAE, UK, Brazil, Mexico, Canada, and USA.
Survey conducted between 03 June 2024 – 19 June 2024.
Digital industry research
8,822 digital merchants across Australia, Hong Kong, China, Japan, Malaysia, Singapore, Belgium, Denmark, France, Germany, Ireland, Italy, Netherlands, Norway, Poland, Sweden, UAE, UK, Brazil, Mexico, Canada, and the USA.
Those polled were senior professionals at businesses with insight “into business revenue and strategy.”