The concept of loyalty dates back to the 18th century when merchants gave customers copper tokens with each purchase. These tokens could then be redeemed for discounts on future purchases to create repeat engagement.
That process is alive and well in the 21st century as brands contend with each other to acquire customer loyalty.
And now we’re seeing a rise in subscription loyalty programs. When consumers join a subscription loyalty program, they pay a monthly or annual fee to receive exclusive benefits.
The subscription model is everywhere you look today ranging from clothing, to food, to household goods, to personal care items and magazines. Brands like subscription loyalty programs because they receive an incremental revenue stream and enhanced customer data.
Subscription loyalty programs have surged to the forefront of American culture and have been viewed for quite some time as a rising trend.
If you’re considering adding a subscription model to your loyalty program, here are 59 subscription-based loyalty statistics you need to know in 2023.
Table of Contents
- New Stats Show the Rise of Subscription Loyalty Solutions
- How Subscription Loyalty Amplifiers Offer Value to Your Members
- Subscription Loyalty Offers Through the Eyes of Consumers
- Shine a Light on Subscription Loyalty for Your Best Customers
New Stats Show the Rise of Subscription Loyalty Solutions
- 93% of consumers have embraced the subscription model, with 68% belonging to multiple subscriptions.
- On average, 77% of consumers spend up to $499 annually on subscriptions.
- 60% of consumers will likely join a brand’s free loyalty program if they can take advantage of paid enrollment offers valuable to them.
- 71% of consumers will recommend subscription products to friends and family if they are excited by them.
- 41% of consumers said they intend to add more subscriptions in the next year.
The subscription statistics from our 2023 Paid Enrollment Data Study above shows how massive appeal is for consumers, with more than two-thirds of consumers holding multiple subscriptions. And this trend is only going to grow as almost half of consumers plan to join more subscriptions.
Here is how much U.S. consumers spend on subscriptions annually:
- No spend (7%)
- $0-$99 (25%)
- $100-$199 (29%)
- $200-$499 (23%)
- $500-$999 (11%)
- $1,000+ (5%)
Read more about the rise of subscription loyalty programs.
How Subscription Loyalty Amplifiers Encourage Engagement
A paid enrollment is a type of subscription loyalty amplifier that allows your customers to receive exciting, limited-time benefits or offers in exchange for a fee.
- 50% of consumers experience FOMO from limited offers.
- 56% of consumers agree that a limited-time offer encourages them to act, showing that FOMO is a powerful driver.
Paid enrollment offers create a sense of FOMO because it gives your existing loyalty program members the chance to receive amazing benefits or experiences that are not available to everyone. They’re designed to spark immediate interest and participation due to the limited-time element and the FOMO effect. This results in repeat customer engagement.
Given the popularity and allure of subscription services and the psychological aspect of FOMO, it’s easy to see why paid enrollments are difficult to pass up for consumers.
Statistically, here’s how paid enrollment offers impact consumers psychologically and create a sense of FOMO:
- 56% of consumers are encouraged to act on limited offers.
- 35% of consumers worry more about missing a good deal or discount.
- 25% of consumers worry more about limited time or quantity.
- 56% of consumers agree that a limited-time offer encourages them to act, showing that FOMO is a powerful driver.
Value is a critical piece of any loyalty program and certainly is for paid enrollment offers as well. Along with this, consumers will likely participate in a paid enrollment if it includes discounts on purchases or if a friend or family member recommended it.
- 54% of consumers expressed their willingness to participate in a subscription-based paid enrollment program if the benefits were deemed valuable. These benefits include exclusive members-only discounts on purchases for a month, access to exclusive VIP events, entry into an exciting sweepstakes, free gifts or a spot in line to pre-order a new product before it is released to the general market.
- 60% of consumers said they were more likely to join a brand’s free loyalty program if it gave them a chance to take advantage of paid enrollments.
- 64% of existing loyalty members would be willing to sign up for a paid enrollment if doing so gave them more valuable rewards or benefits in their program beyond what the average member or customer receives.
- 71% of consumers are likely to recommend subscription products that they are excited about to friends and family, while 68% of consumers are likely to join a paid enrollment program for a brand they like if a trusted friend or family member recommended it to them.
- 70% of consumers are interested in discounts on purchases when it comes to paid enrollment offers.
How consumers value paid enrollments:
- 54% of consumers are willing to join a subscription-based paid enrollment if the benefits are valuable.
- 60% of consumers are interested in free loyalty programs with paid enrollment benefits.
- 64% of existing loyalty program members would sign up for a valuable paid enrollment.
- 68% of consumers are likely to join a paid enrollment if recommended by friends or family.
- 71% of consumers will likely recommend subscription products they’re excited about to friends and family.
Subscription-based Loyalty Amplifiers in Action
A great example of a paid enrollment offer is Taco Bell’s Lover’s Pass.
To celebrate National Taco Day in 2022, Taco Bell’s Taco Lover’s Pass allowed participants to receive one taco each day for 30 days. The price for the Taco Lover’s Pass varied from $5 to $10, depending on the customer’s location.
Since the pass was exclusive to Taco Bell Rewards members, this paid enrollment gave current members an exciting, limited-time offer and encouraged member signups.
Read more about the power of paid enrollment.
Subscription Loyalty Offers Through the Eyes of Consumers
- 72% of consumers aren’t currently participating in any paid enrollment offers.
- 78% of consumers who aren’t participating in any said they’re likely to opt in if the paid enrollment offer was exciting or valuable.
Most consumers are not participating in paid enrollment offers, but, as the stats show, they would if they were valuable and included key benefits. What intrigues consumers about paid enrollment offers?
What are the most important paid enrollment benefits to consumers?
- 70% said discounts, coupons and cash-back on purchases
- 68% said free or discounted shipping
- 28% said members-only experiences (early access, members-only sales, express checkout instore, VIP customer service, community events)
- 24% said surprise rewards
- 20% said chances to win a prize
- 11% said branded merchandise/swag
- 10% said customizable digital rewards
So what is preventing consumers from signing up for paid enrollment offers?
The stats below explain why consumers haven’t signed up for subscription-based paid enrollments.
- 25% don’t want to share personal information
- 29% say they are time-consuming/requires too much effort
- 21% say they are inconvenient
- 21% felt it’s bothersome or annoying to be asked at instore checkout
- 40% say the benefits/rewards weren’t interesting
- 28% preferred brands don’t offer paid enrollments
- 20% are unaware of brands’ paid enrollment offers
- 12% don’t understand how it will personally benefit them
When asked about the most enticing incentives and categories for paid enrollments, 74% of consumers said that discounts on products would be an incentive to sign up.
What do consumers want from paid enrollment offers?
- Memberships that give discounts on products (i.e., a restaurant subscription that gives free drinks or discounted menu items) 74%
- A guaranteed spot in line to order a new product not on the market yet (i.e., a smartphone or vehicle) 30%
- Access to daily instant-win games for the chance to win big prizes 28%
- Exclusive access to VIP events 21%
- Access to VIP customer service 18%
As far as which categories consumers want paid enrollment offers from, 57% want them for groceries, 45% for gas and 44% for food and beverages. Below are the top 10 categories in which consumers would most likely sign up for a paid enrollment.
What are the top 10 categories consumers would most likely sign up for a paid enrollment?
- Groceries 57%
- Gas 45%
- Food and beverage (including restaurants) 44%
- Entertainment 31%
- Health and beauty 28%
- Apparel 26%
- Household products 20%
- Travel and tourism 20%
- Electronics 19%
- Lodging 16%
Besides the need for value, consumers are also drawn to convenience. When you can combine value and convenience, most consumers will participate in a paid enrollment offer in common verticals like gas and food that they use regularly.
As shown in our stats, offering your customers discounts on products and VIP customer service and VIP events attracts them to subscription-based loyalty programs.
Giving your customers easier access through a subscription-based loyalty program helps you retain them as loyal members.
Read more about how subscription loyalty and paid enrollment offers can boost your loyalty strategy.
Shine a Light on Subscription Loyalty for Your Best Customers
As these subscription loyalty statistics show, while many consumers are not currently participating, they are willing to if there is apparent value.
The clear takeaway from these subscription-based loyalty statistics is you have to offer valuable benefits in your program and your customers will embrace it. Add in convenience and you have a winning subscription loyalty formula.
Listen to your customers and understand their needs and expectations so you can tailor a subscription loyalty program appropriately and offer the right benefits.
Download the 2023 Subscription Loyalty Paid Enrollment Data Study here.
If you want to talk to our experts about subscription loyalty or paid enrollment offers, contact us here.
ebbo
ebbo helps brands achieve their customer loyalty goals with full-service, end-to-end solutions and also creates original educational content straight from the experts to help loyalty marketers stay on the cutting edge of customer engagement.
