Subscription Fatigue: Why Consumers Are Cancelling Auto-Renewals
Are you tired of constantly being bombarded with email notifications for auto-renewing subscriptions? You’re not alone. In recent years, there has been a growing trend of consumers cancelling their auto-renewals due to what is commonly known as “subscription fatigue”. This phenomenon occurs when consumers become overwhelmed and frustrated with the number of subscriptions they have, and the increasing cost of these ongoing payments. In this article, we’ll take a closer look at subscription fatigue and why it’s causing consumers to hit the cancel button on auto-renewals.
The Rise of Subscription Services
The subscription model has become increasingly popular in recent years, with companies offering everything from streaming services and meal kits to beauty boxes and online courses. It’s no surprise why – subscriptions create a steady revenue stream for businesses and provide convenience for consumers. However, the convenience and affordability of these subscriptions may not outweigh the downsides.
According to a study by West Monroe Partners, 84% of adults in the United States are currently subscribed to at least one monthly service, and the average American spends over $200 a month on subscriptions. This staggering number means that the market for subscriptions is becoming oversaturated, and consumers are feeling the impact.
The Cost of Subscription Fatigue
At first, signing up for multiple subscriptions may not seem like a big deal. However, over time, the costs can add up. Many consumers don’t realize how much they are spending because the payments are automatically deducted from their account each month. This leads to a phenomenon known as “passive overconsumption”, where customers continue to pay for subscriptions they don’t actively use or even remember signing up for.
Furthermore, subscriptions have a sneaky way of gradually increasing in price. A study by the subscription management platform, Truebill, found that subscriptions with a free trial period are 3.9 times more likely to see a price increase once the trial is over. This bait-and-switch tactic often leaves customers feeling deceived and leads to cancellations.
The “Set it and Forget it” Mentality
Another factor contributing to subscription fatigue is the “set it and forget it” mentality. With so many subscriptions to choose from and the ease of signing up, it’s easy for consumers to fall into the trap of thinking, “Why not? It’s only $10 a month.” Before they know it, they have a long list of subscriptions and are paying a significant amount each month without realizing it.
The issue with this mentality is that consumers often forget what they have subscribed to, and why they signed up in the first place. This leads to a sense of disconnection from the products and services, resulting in further cancellations and a waste of resources for businesses.
Consumer Frustration and the Search for Alternatives
Inevitably, the growing cost and overwhelm of subscriptions lead to consumer frustration and the search for alternatives. Many choose to either cancel their subscriptions or turn to free options instead. According to a survey by The Pollfish Blog, 60% of respondents said they would choose the free version of a product or service over a subscription, and 57% said they would cancel a subscription if a free alternative was available.
This trend has caught the attention of businesses, and many are now exploring alternative models, such as offering a one-time purchase or a pay-as-you-go option, to cater to the needs of their customers.
Conclusion
Subscription fatigue is a growing concern for both businesses and consumers. With the endless options and the ease of signing up for subscriptions, it’s no surprise that consumers are overwhelmed and frustrated with the increasing costs. As a result, businesses must be mindful of their pricing strategies and provide alternative options for customers to avoid cancellations. As for consumers, it’s essential to review your subscriptions regularly and unsubscribe from those that are no longer serving you. By doing so, you can regain control of your finances and avoid subscription fatigue.
