Millennials and Subscription Services

Unlocking the Millennial Mindset: The Rise and Impact of Subscription Services

‘Net Generation,’ ‘Gen Y,’ or ‘Millennials’ are the colloquially used names for the generation that came into this world after Boomers and Gen X and before the famous Gen Z to share an overpopulated digital arena. However, this digital arena is nothing like our real world. It is capable of accommodating even more generations.

But is this all about population or the shared space that Millennials are so popular? No!

It is their behavioural pattern for which they are always under discussion. Whether it is a Ted Talk or a Pep Talk, Millennials in comparison to Gen Z are the topic of discussion for all.

So, if your subscription business sales and marketing executives are also mulling over studying purchasing patterns of this generation, then this article is for you. Here, you will find all details of Millennials and subscription services.

Also Read: 5 Most Graving Challenges And Their Solutions To Retain Gen Z Subscribers

Subscription Business Market & Behavioural Patterns of Millennials

Statistics tell that almost 95% of Millennials use some kind of subscription. Also,

Nearly two-thirds of millennial and Gen Z consumers have cancelled a streaming subscription in the prior six months, a Deloitte survey found.

Many experts consider the reason for quitting subscriptions is subscription fatigue. When a customer buys many subscriptions, at some point, he realizes that these subscriptions are just piling up, and he uses them rarely or not at all. Then he opts for cancelling them all. This mindset of the customer explains subscription fatigue.

However, many other financial experts tell that the reason for subscription cancellations is the increase in the rate of inflation. They say Millennials and even Gen Z youngsters prefer subscriptions for groceries and other basic needs on subscriptions for various OTT platforms e.g. Netflix etc.

Coming towards the opinion of experts at SubscriptionFlow, they say, subscription retailers should not let this slip from mind for even a second that their business is based on the recurrent need of the customer. Groceries, food items, dairy items, newspapers, and even SaaS platforms are the need of people.

No one can survive without food. To stay abreast of political, economic and social situations in the world has also become a need. Also, people who work online cannot continue their routing without renewing subscriptions for SaaS tools and platforms that they need. On the flip side, subscriptions to OTT platforms or subscriptions for some summer subscription boxes are not the need rather people want such things from time to time. So, if you have rightly identified the recurrent need of the targeted customers, if you have based your subscription business on this recurrent need, and you are monetizing your product and services rightly, then you are on the right path. Inflation, subscription fatigue or anything else cannot shake the foundations of your subscription business.

A Futuristic Strategy for Subscription Businesses

We do not say that the reasons for subscription cancellations for all businesses are the same rather they are diverse. However, there are some strategies that can help all to fight churn no matter if the reason for churn is inflation or subscription fatigue.

1. Changes in the Pricing Plan

Those who believe that the reason for churn in their business domain is inflation need to improvise prices accordingly. One thing that you can do is offer customized pricing plans. This strategy will work for SaaS and OTT platforms. However, run it for a short while. If you find a significant improvement in the churn rate and the acquisition rate as well, then you can engage marketing and sales teams to come up with new pricing plans to offer your customer that will be the best fit for both the customer side and retailers as well.

Also Read: SubscriptionFlow to Generate Optimized Sales Proposals That Can Grow A Loyal Customer Base

2. Churn & Return Policy

Now that you know customers are churning, the next move can be to work for the churn and return policy. If people are leaving because the inflation rate is high, then in the future, inflation can be brought under control. Prepare for the future, and prepare a robust churn & return policy.

3. Subscription Pause Option

Customers who leave you because they can no longer pay you hefty subscription fees or they had to prioritize, then you can offer them the pause subscription option. It is easier to bring dormant customers back to life rather than bring back those customers who have left altogether.

4. Customer Re-engagement Campaigns

Your customer engagement strategy which was working fine a few months back is not sufficient for the current market situation. So, it is high time to craft a re-engagement campaign. Segment your churned millennial customers based on their previous interactions, preferences, and behaviour. Craft personalized messages that highlight improvements or new features that directly address their concerns or interests.

5. Rebranding & Relaunch

If nothing works, then the last resort can be the rebranding and relaunch of your subscription products or services. Position the relaunch as a significant update or a new and improved version of your offering, emphasizing the value and benefits that churned millennials can now enjoy.

Subscription businesses can opt for various strategies to get their millennial customer base back, however, they must not forget this not every millennial can be won back. All millennial customers have their own reasons to quit subscriptions. Sometimes, even promotions and discounts do not work to bring back a customer. However, your target should be to maximize the retention rate and minimize customer churn.

Also, to implement your subscription business strategy for customer retention, you need a subscription management platform that offers you the robust feature of analytics and reporting. Here, you will be able to monitor the performance of your millennial retention strategy. Retailers can improvise their strategies when they have a clear understanding of the relevant KPIs.

SubscriptionFlow is the subscription management platform that offers the best reporting and analytics features for subscription businesses. Schedule a demo now for SubscriptionFlow to see how it can help you with millennial subscription services.