B2B software search website Capterra has revealed the results of a study on subscription-based businesses and how Australians are getting accustomed to subscribing to services that are not necessarily the stereotypical video-on-demand platform.
After surveying 1,000 respondents, Capterra found that 87% of respondents subscribe to at least one product or service, with more than half (54%) indicating they only have subscriptions to streaming platforms that offer video or audio content, indicating that this type of service is still the most prominent example of the subscription business model.
However, for respondents who clarified that they were not only users of streaming services, 53% of them subscribe to a ‘box of products’, such as beauty (for example skincare) or food (such as meal deliveries), while 33% indicated that they subscribe to some sort of health or fitness platform.
As is to be expected, Capterra says extended periods of lockdown and social isolation have resulted in clearer support for these remote services, especially when those products are presented with some kind of benefit or initiative. With respect to health and fitness platforms, more than a quarter (27%) of survey-takers said the main reason they joined the platform was because it ‘started as a free trial’ before they subscribed. Other reasons for users to begin subscriptions include the product being a recommendation from others (25%), the offer of a promotion or discount (17%), or for the convenience (16%), the report says.
Capterra’s survey also revealed a notable group (some 13%) that were not currently subscribed to any service or platform, with two-thirds of this contingent clarifying that they had never signed up for anything in the past, either. According to the survey, forty seven per cent of these respondents indicated that they felt a subscription was not worth the money, while around one-third said that there was no service that interested them. Further diversification in the types of businesses that offer their products as subscriptions may reduce the amount of undecided users, and more competition between rival platforms will likely see prices fall, too.
“Despite rising inflation rates this year, consumers who subscribe to non-traditional subscription services are still choosing to pay over $30 per month,” said Laura Burgess, Content Analyst for Capterra Australia. “
"The subscription business model can make expensive products more accessible and more affordable for shoppers. Flexible payment plans, paying a monthly fee and no upfront lump sum are key for gaining new customers," she said.
To collect the data for this report, Capterra conducted an online survey in August 2022 with the participation of 1,000 respondents. The selection criteria for participants included being an Australian resident, between the ages of 18 and 65, and shops online more than once a month.