Keeping retail subscription customers loyal is crucial to maintaining a successful subscription-based business model, according to a report from PYMNTS Intelligence and sticky.io. Based on a survey of over 2,000 U.S. consumers, the report discovered that the top 30% of retail subscribers, or “loyalists”, generate 79% of total revenue in the retail subscription space.
A key finding of the report is that excessive promotional materials can alienate these high-value customers, leading them to consider cancelling their subscriptions. Overmarketing can diminish the perceived value of the service or products, particularly as loyal customers sign up primarily for quality and convenience. Excessive promotions undermine the value and convenience which initially made the subscription appealing.
This sentiment was echoed by sticky.io’s CEO, Brian Bogosian, who told PYMNTS that a barrage of emails can come off as pestering subscribers. He advised for promotional content to be concise, compelling and quick to read.
In addition to the risk of diluting perceived value, too many promotional materials can be overwhelming, triggering a counterproductive effect. Instead of sparking excitement about new offers, customers may feel burdened by the constant influx of messages. Such bombardment can lead to customers disengaging or unsubscribing to escape the overload.
Moreover, excessive promotions can clutter the user experience, making it challenging for customers to find relevant information or navigate the subscription platform effectively. The report warns that even the most loyal customers have a limit and can be deterred by aggressive marketing.
Source: Subscription Merchants Alienate Customers With Marketing .
