Despite rising living costs, consumers are reluctant to cancel their subscriptions, instead opting to upgrade or pause contracts, reveals research from Minna Technologies.
Minna Technologies’, the global subscription management service embedded in banking and fintech apps, inaugural Subscription Economy: Business Barometer report shows that consumers remain much more likely to upgrade their subscriptions rather than cancel. Previous research indicates that 86% of subscribers would consider accepting a new offer on their subscriptions rather than cancelling.
Each month, 25% of users change their subscription with two thirds (65%) of subscribers opting for account upgrades. The research also shows that almost three quarters (72%) of users would rather pause their subscriptions than cancel. Currently, 61% of subscription companies offer users this option while a further third (33%) plan to introduce this functionality in the next 12 months. Minna Technologies explains that although upgrades are the most common change, providers recognise that the flexibility of being able to pause accounts is becoming increasingly important amidst rising living costs.
This subscription flexibility is also reflected in the half of subscription companies planning to invest in AI technology or API integrations with partners in a bid to maximise the opportunity for growth, gain a competitive edge and attract and retain subscribers.
Amanda Mesler, Chair and CEO of Minna Technologies, says: “As subscription businesses face global macroeconomic challenges and evolving subscriber behaviour, demands and regulations, the ability to constantly adapt to the ever-changing landscape is vital.”