A new study by YouGov and Zuora found a rise in energy, automotive and healthcare sectors shifting to recurring revenue models.
The leading SaaS provider of subscription order-to-cash solutions today released a new partnership with YouGov, showing an estimated 89% of Britons subscribe to services.
Zuora’s study A Nation Subscribed revealed that 9 in 10 Britons subscribe to their favourite stores, brands and services instead of purchasing them on a ‘one-off’ bases, demonstrating an 11% uplift from results in previous years.
‘Subscription businesses grow revenue’
The survey results found the UK adult population spend £56 per month on subscription services on average, with 35-54 year olds spending around £62 per month.
According to the Zuora, this business model strategy has proved that subscription businesses grow revenue nearly nine times faster than S&P 500.
Attracting nearly 2 million consumers, subscriptions have moved beyond just media and entertainment consumption, and have expanded to include grocery shopping services and in-car apps, counting 650,000 UK subscribers.
‘Creating long-term brand affinity’
Zuora vice-president at EMEA, John Phillips, said: “Nearly all of the British population is part of the Subscription Economy. From heating to healthcare, Zuora’s new study proves that the subscription-business model has gone mainstream and consumers have bought into recurring payments.
“The only way businesses can sustainably maintain relationships with consumers and grow is by moving away from their product-centric mentality and creating long-term brand affinity based around flexible subscription-based services.”
The healthcare sector is also experiencing the same shift with 12% of British adults choosing to pay monthly for prescriptions and private healthcare services.
Written from press release by Leah Alger