The $240B Subscription Economy: Must-Know Trends And Stats

Subscription business models are growing extremely fast! And it is not surprising, as these business models have many benefits, for example, predictable revenue, you can earn more through up- and cross-selling, higher customer retention, etc. What stats do we have nowadays and what can we expect from subscription business models in the foreseeable future? Let’s have a closer look at some numbers!

And the numbers are very promising, as by 2022 subscription revenue is forecasted to grow by $242.9B worldwide (in Europe — $57.8B). For comparison, in 2018 it was $151.7B globally (in Europe — $37.4B). More than that, the average subscription billing vendor is growing by at least 30% annually!

So what subscription types are the most popular? They are digital content, software/SaaS, music, video streaming, games. By 2022 a global consumer will spend $208.9B on digital content subscriptions (in 2018 — $116.8B). And by that time 86% of all digital content revenue will come from subscriptions.

If you are not a digital product creator, you still have a chance and should use a subscription business model. Recent research shows that consumable goods (e.g. newspapers, food boxes, beauty boxes, razor blades, etc) and durable goods (e.g. electronic devices, private lease cars, household appliances, etc) are very popular for subscriptions too. For instance, in 2018 the market size of the mentioned above goods was around $80B only in Europe. 5% or €130 per month of European household budgets go to subscriptions. An interesting fact is that consumers from Poland, Romania, Czech Republic, Spain, and Italy are the most positive about subscriptions.

What about American consumers? The same research shows that in the US men are more likely to subscribe to razors, food delivery, video gaming gear, while women prefer to subscribe to beauty services and apparel services. 42% of men and 28% of women have 3 or more subscriptions.

To boost your subscription conversion, you can do the following

• deliver a personalized experience to improve value, be flexible and let your subscribers customize their goods where possible
• have positive reviews of your service online to acquire more customers
• make it easy to pause the service or alter the volume of goods received
• set up recurring billing to reduce churn.

If you are looking for a reliable payment system for your subscription business, here at CentroBill we will be glad to help you! We’re dedicated to giving you a seamless payment solution that complies with PCI Level 1 standards. By choosing our trustworthy gateway, you’ll not only have access to credit card payments but also an array of alternative methods. What’s more, we offer Customer Service and fraud/risk management and you’ll be able to process payments via standard EBICS connection supported by almost every bank in the EU! Our simple integration and powerful API’s make running your business a joy opposed to a burden whether its email support for merchants and shoppers alike, chargebacks notifications, refunds, cancellations, membership upsells, or 1 click payments for returning customers, our payment solutions will give your clients and yourself the ease of use you’ve been looking for.

(Source https://insights.payvision.com/must-know-subscription-trends)