The New Prescription is Subscription
Wednesday, September 11th, 2019
The state of American’s stress is stressful. The American Institute of Stress reported that 77% of Americans regularly experience physical symptoms caused by stress. Today, many Americans are turning to subscription services to alleviate their anxiety. The routine, reliable and digital payment technology positions subscription services as another tool to navigate stress. Subscription services have the opportunity to provide quality products when and where consumers want them. The number and variety of subscription services has increased from gym memberships to dog toy boxes, to fashion hauls and meal kits.
These services also alleviate the pains of purchasing with recurring payment plans; however, up to 40% of subscription users drop the service after a year due to their tendency to overestimate how much they want or need. Subscriptions that provide services that aid with daily chores, such as walking the dog or grocery shopping, are experiencing long-term growth. In contrast, services that provide niche or novelty experiences have not accomplished sustainable growth.
Millennials are less likely to own cars and homes than their parents, which opens opportunities for brands and retailers, that older generations once commuted to. For example, retailers such as Macy’s are dipping a toe into the subscription game.
Subscription services have grown and expanded to meet diverse needs. Need to get your ears pierced? Start-up company Rowan has a subscription service for that. Tired of your blooming baby out-growing its shoes before it can walk? Nike has a subscription for that. Don’t have time to make the perfect lunch for your angel children? Get them this school lunch kit.
Subscriptions are the helping hand that can alleviate daily stressors such as cooking, cleaning, errands. Maybe you don’t need to sign a prescription, but get a subscription.
Contributed By: Karina Arnold, Account Planner, Integer Denver
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