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Data for today’s episode is provided by Mercator Advisory Group’s report – North American PaymentsInsights, U.S – Subscription Services and Bill Pay: Card Payments Dominate
What’s Winning and What’s Losing with Box of the Month Subscriptions?
- 75% of past subscribers to ‘box-of-the-month’ clubs have a current (alternate) subscription box.
- So, despite the churn, users are largely staying with the category.
- 46% of ‘tech forward’ consumers belong to a ‘box-of-the-month’ club or service.
- In contrast, only 7% of ‘tech laggards’ belong to a ‘box-of-the-month’ club or service.
- For tech forward consumers, the two most popular categories of subscription box are Food (17%) and Clothing (17%).
- 7% of ‘average’ rated tech savvy consumers subscribe to a Food or Clothing subscription service.
- Tech savvy consumers (14%) and average consumers (9%) compare closely in their subscription to Health and Beauty subscription services.
Mercator Advisory Group’s most recent consumer survey report, Subscription Services and Bill Pay: Card Payments Dominate, from the 2019 Technology Survey of the bi-annual North American PaymentsInsights series, examines U.S. consumers’ current use of subscription services and methods for paying their bills.
The report, which is based on an online panel survey administered to 3,006 U.S. adults in November-December 2019, presents results from questions exploring how adults in the United States use and pay for “box of the month” clubs and online subscription services. It also explores the ways consumers pay their bills and the increasing importance of digital bill payment.
Regarding subscription services in the U.S., consumers are about twice as likely to subscribe to an online subscription service as to subscribe to a “box of the month” service (59% vs 23%). Interestingly, a relatively large portion of American adults (38%) do not subscribe to either type of service.
When it comes to paying bills, the majority of consumers (6 in 10) are currently paying at least some of their bills electronically through either automatic billing or bank account withdrawal. Consumers are paying bills in equal proportion through electronic bill pay via their bank, their biller, or bill pay service.“This report explores two very important aspects in the payments ecosystem—subscription services and bill payment. Electronic payments play a very large role in both of these areas, and it is important to understand the payments dynamics of both,” stated the author of the report, Peter Reville, director of Primary Research Services at Mercator Advisory Group, which includes the North American PaymentsInsights series.