The Rise of Subscription Models

In the Internet era, subscription models have risen in prominence to the point that it’s hard to find a service without one. In fact, the growth rate of subscription models is around 3.7 faster than the growth rate of companies in the S&P 500. But what is creating an environment for subscription models to grow?

It seems that consumers balance convenience, cost-efficiency, and customization. Around 14.1% say they subscribe for cost-effectiveness and 22.7% claim they subscribe due to the innate convenience subscription models have. Furthermore, many subscriptions have the option to customize when these deliveries. This option helps to suit customers who need products weekly or need products only a couple times a year. 

Additionally, context is very important when understanding the surging popularity of subscription models. Many models were released or popularized during the COVID-19 lockdowns. With normal avenues of purchasing heavily restricted, subscriptions became a much better option for many consumers, evidenced by a 11.6% growth during the pandemic. 

Ultimately, subscription services have found their footing with consumers and have laid bare all the benefits they have for business. As these models continue to grow both in merit and popularity, it is certain that subscription services are going to be prominent with consumers in the future.

Data shows subscriptions are here to stay

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