Free shipping is a crucial factor in ensuring the loyalty of consumers who have subscriptions to retail products.
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GLOA survey conducted by pymnts in collaboration with sticky.io, titled “Subscription Commerce Readiness Report: The Loyalty Factor,” gathered insights from over 2,000 U.S. consumers who had retail product subscriptions. The study aimed to identify the factors that contribute to subscriber loyalty and those that lead them to unsubscribe. The findings emphasized the significant role of free shipping in retaining subscribers.
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Specifically, the study revealed that 42% of respondents indicated that discontinuing free shipping could be a strong motivation for canceling their retail product subscriptions, surpassing other factors mentioned by participants.
The second most influential factor leading to subscription cancellation, identified by one-third of the respondents, was the inability to pause or skip deliveries. This highlights subscribers’ desire for flexibility, and if providers attempt to impose greater commitment than they are comfortable with, consumers may choose to terminate their subscriptions and seek alternatives.
Surprisingly, a lack of trustworthy information and reviews about products had a relatively low impact on retail product subscribers. Only 26% of respondents listed insufficient information about the products as a possible reason for canceling their subscriptions, and merely 23% expressed concerns about inaccurate or misleading ratings and reviews.
However, when it comes to payment-related matters, consumers are less forgiving. Thirty percent of subscribers stated they might cancel their subscriptions if they received misleading information about recurring charges, and 32% indicated they would consider canceling if their subscription was renewed without their explicit approval.
