It was not at first noticeable to you. One television subscription to watch programs. Another to music. Then one to eat better, be fit, and perhaps read the news. One day, your monthly budget is swarmed with \$7.99, \$14.99, and \$29.99 entries which all appeared to be harmless back then.
Meet subscription fatigue, the expense and exhaustion of having too many recurring services. Even though this model transformed the way we consume media, food, fitness, and software, it is currently pushing the consumer to the limit. And when you are a business that is still operating by the old playbook of subscriptions, then you are in trouble.
How can companies keep up with the times then?
What Is Subscription Fatigue (and Why Care)?
The subscription fatigue is the rising dissatisfaction of customers as the number of monthly payments in their life explodes to uncontrollable proportions. The convenience has turned into a crippling burden.
Surveys in the recent past indicate that the average individual is now managing about 12 active subscriptions. Those are streaming services, productivity apps, food boxes, fitness apps, and so on. That costs them hundreds of dollars a year, out of their bank accounts, at a time, \$10 to \$20 at a time, often without their realizing it until they find themselves short of funds.
Cost is only one side of the problem. The actual drain is mental. Users become frustrated with multiple logins, billing cycles, auto-renewals and cancellation obstacles. All that sums up to churn, decreasing loyalty, and customer mistrust.
Why Subscription Fatigue is a Concern to Businesses
And, if your company relies on a recurring revenue model, then subscription fatigue is not a buzzword, it is a threat.
1. Growing Churn Rates
Two-thirds of consumers have dropped at least one subscription within the last year. That is not an accident, it is the backlash of being nickel-and-dimed.
2. The cost of acquiring customers is rising.
It is overcrowded. The consumer is more jaded (and more costly) than ever to get to take a chance on one more subscription. The expenditure on marketing has increased but conversion has reduced.
3. Loyalty to Brands Is Deteriorating
Trust is destroyed when corporations bury cancellation links, or increase prices without notice. Social media is used to spread bad experiences and pull your reputation down quicker than an unsuccessful app update.
4. The Growth Is Slowing
Do you recall the time when the digital subscriptions were the new thing? Last year, growth slowed down by 15 percent. People are getting pickier and are dropping anything that does not provide them with the instant, tangible value.
What is the Cause of Subscription Fatigue?
- Subscriptions Overload
Whether it is groceries or games, all industries are now interested in charging you on a monthly basis. Consumers find themselves baffled by choices that do not appear to be much different.
- Cost Creep
five dollars here, twelve dollars there. When addicted, the prices are likely to increase. It does not take long before the customers notice that they are paying more than they should and not receiving as much value as they should.
- Diminishing Value
The consumers question themselves: are they actually using this? Otherwise it is the first to be sacrificed. Where there is a mismatch between the price and perceived value, there is churn.
- Hard to Manage
Expiration dates, unseen fees, and missed passwords, it is a pain. When the companies make it difficult to cancel, they do nothing but enrage the customer.
Subscription Fatigue in the Real World
Streaming Services
Netflix, Disney+, Hulu, Max, Peacock, choose one. Customers tend to keep switching subscriptions, dropping one to accommodate another. That is the fatigue at work. The fact that Netflix has introduced an ad-supported plan demonstrates that even giants have to change.
Automotive Features
BMW went as far as to charge to get heated seats even though the seats were already heated. The counter-reaction was instant. Customers do not like to be re-billed again on what they have already purchased.
News and Publishing
Others such as The New York Times have been able to expand through bundling (e.g. news, games, Wirecutter, The Athletic) into an irresistible one-stop package. It is about getting the most perceived dollar, rather than getting every dollar.
How Companies Can Fight Subscription Fatigue
It is time to change your thinking, especially in case you run a subscription business. The old methods are no longer going to be effective.
✅ Create Real, Long Term Value
Put yourself in the position of: Would I really pay to do this? Otherwise, you should not expect your customers to. Always enhance the product. The fitness app that incorporates mental health materials or nutrition programs is a new motivation to keep the subscription.
✅ Give Flexibility
Allow people to pause, degrade or cancel painlessly. Consumers do not want to feel trapped. Flexibility creates trust and trust creates retention.
✅ Be Open
No secret charges. No sharp price increases. Keep your pricing easy and straightforward. There is nothing that kills goodwill as quickly as surprise charges.
✅ Manage Easy
Make a dashboard in which users can do everything with ease: payment, usage, upgrades, cancellations. Reminders should be sent prior to billing. People are confident when they have transparency.
✅ Make it Personal
Reward loyal users using the behavioral data. Provide discounts, special plans or loyalty benefits. Little things demonstrate that you care and that is a weapon against churn.
✅ Explore New Pricing Models
Not all people are willing to commit on monthly basis. Freemium try, pay-per-use or tiered. Netflix with their lower ad-supported subscription tier has reached out to a wider audience - you can do it too.
✅ Make Cancellation Simple
Counterintuitive? Maybe. However, when users are made to feel respected in the process of cancelling, chances are high that they will come back. The click-to-cancel regulations are becoming the norm, so it is easier to be on top of it than to be compelled to implement.
Final Thoughts
The subscription fatigue is not a fad. It is a wake-up call to business.
Consumers desire control, clarity and value. Unless you are doing that, you are in danger not only of churn, but of being forgotten.
The firms that will succeed in this new age are not those that are locking up their users, but those that are opening the doors to their users to come by being worth it. Put the tough questions. Provide what is relevant. And create a subscriptions-based business that does not disrespect your customer with their time, money, and trust.
That way you can stand out in a world that is sick and tired of just one more subscription.
