Minna Technologies Report Reveals Consumers Reluctant to Cancel Subscriptions
July 6, 2023

Despite the cost of living crisis, consumers are showing reluctance to cancel their subscriptions, according to research from subscription management technology company Minna Technologies. Instead, they are more inclined to upgrade or pause their subscriptions.

The research marks the launch of Minna Technologies’ inaugural Subscription Economy: Business Barometer report in partnership with FT Strategies and global market research firm Savanta.

While 92 per cent of subscription businesses acknowledge the escalating cost of living as a threat to their operations, they highlight the fact that consumers exhibit a stronger inclination towards upgrading their subscriptions instead of canceling. This observation aligns with Minna Technologies' previous research, which indicates that 86 per cent of subscribers would be open to embracing a new offer on their subscriptions rather than opting for cancellation.

Each month 25 per cent of users change their subscription with account upgrades being the most common switch with two thirds (65 per cent) of subscribers opting for this. Sixty per cent of subscription businesses say that up to a fifth of their users cancel and then resubscribe within six months.

Over half of subscription businesses have seen subscriber numbers increase by more than a fifth over the last 12 months, with US businesses experiencing a larger rise (63 per cent) compared to 46 per cent of UK companies.

Amanda Mesler, chair and CEO of Minna Technologies, says: “For most subscription businesses, customer retention across all their channels, including native apps, banking apps and app stores, is a higher priority than acquisition. Subscribers can benefit from enhanced flexibility, convenience and control, unlocking greater value from their subscriptions – essential in the cost of living crisis.

“As subscription businesses face global macroeconomic challenges and evolving subscriber behaviour, demand and regulations, the ability to constantly adapt to the ever-changing landscape is vital. Regulatory developments in the US and UK also highlight the importance of protecting consumers’ interests in managing subscriptions. However, there is a growing optimism amongst subscription businesses in this rapidly changing landscape.”

Globally, regulators are looking to introduce legislation to offer subscribers more protections, including making it easier for them to cancel. In the UK, legislation from the Competition Market Authority aims to clamp down on 'subscription traps' while US regulator, the Federal Trade Commission, recently proposed requirements for companies with customers on recurring payment programs to offer easy online cancellation.

Minna Technologies is a B2B2C platform with an automated subscription management engine, bank-grade compliance and the widest global subscriptions and payments coverage. Minna helps global clients, including financial institutions such as Lloyds Banking Group, ING, Swedbank, OP Financial Group and SpareBank, fintechs and subscription businesses, grow revenue, reduce operational costs, and drive engagement, retention and lifetime value for over 50 million users.

Subscription Economy: A Transformed World is available for download.

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