Retail subscription overload: Two-thirds of US shoppers can’t afford all their subscriptions

Rhea-AI Summary

According to a recent survey of 3,000 American consumers by Bango, 66% of US shoppers find themselves unable to afford all their desired retail subscriptions. The study highlights the increasing frustration among consumers, with 50% expressing annoyance over the inability to manage multiple subscriptions in one place. Consequently, 76% of respondents favor a unified app to oversee all subscriptions. The trend indicates a growing market for 'Super Bundling,' where multiple subscriptions are consolidated into a single package. Retail giants like Target, Walmart, and Amazon have already initiated their membership programs, influencing consumer shopping behaviors significantly. Bango's research points to an evolving retail landscape where Super Bundling could become a dominant model.

Positive

• Target has launched its new membership program, Target Circle 360, following successful models like Walmart+ and Amazon Prime.
• Research shows that 76% of consumers want a single app to manage all their subscriptions, indicating a potential market for service aggregators.

Negative

• 66% of US shoppers can't afford all the subscriptions they want, indicating financial strain among consumers.
• 50% of consumers are frustrated by the inability to manage multiple subscriptions in one place, highlighting inefficiencies in current subscription models.

Survey of 3000 Americans shines a light on retail subscriptions

SAN JOSE, Calif., July 10, 2024 (GLOBE NEWSWIRE) -- With many major retail brands now offering their best deals as a subscription, two-thirds (66%) of US shoppers can’t afford all of the subscriptions they would like. That’s according to research from Bango that delves into American shoppers’ habits and attitudes towards subscription services.

Surveying 3,000 Americans with a retail subscription, the research follows the launch of Target’s new membership program – Target Circle 360 — a membership subscription designed to enhance the shopping experience at Target by making it more convenient and affordable.

Target is the latest retailer to launch a subscription service, following in the footsteps of Walmart+ and Amazon Prime. These services, designed to provide greater customer value, are all changing the way consumers shop in the US.

Shoppers already have 5 subscriptions on average. Faced with more and more choice when it comes to retail subscriptions, with the additional choice frustrations are growing. Half (50%) of consumers surveyed are “annoyed” that they can’t manage all of their subscriptions in one place. As a result, 76% say they want one app to manage all of their subscriptions in one place.

Super Bundling

Bango predicts that as retail subscriptions become more commonplace, ‘Super Bundling’ — where multiple subscriptions are bundled into one package — will increasingly break into the retail space.

As explained by Juniper Research, Super Bundling services consist of a single payment to a service aggregator such as a telco for several subscriptions through a single online subscriptions hub — with one high profile example being the Verizon +play content hub. This allows consumers to enjoy easier management of their subscriptions and fewer card-on-file payments throughout a billing period.

Research by Bango reveals that all signs point towards a market opening up for Super Bundling in retail, as almost a third (31%) of shoppers already get their subscriptions as part of a bundle, rather than going direct to the subscriptions provider.

Commenting on these findings, Anil Malhotra, CMO of Bango said, “The way we shop is changing — again. The rise of subscription boxes and same-day delivery has transformed retail in recent years. And as more retail giants begin to develop their offerings and drive loyalty through subscriptions, it’s only natural that they will look to enter the Super Bundling space.

“Already, retail subscriptions like Walmart+ in the US offer Paramount+ as a bundle and in Europe Carrefour Plus bundles Netflix. This is just the beginning of a much more widespread shift.”

To find out more about the subscription trends of shoppers in the US, read the full story here.

About Bango
Bango enables content providers to reach more paying customers through global partnerships. Bango revolutionized the monetization of digital content and services, by opening-up online payments to mobile phone users worldwide. Today, the Digital Vending Machine® is driving the rapid growth of the subscriptions economy, powering choice and control for subscribers.

The world's largest content providers, including Amazon, Google and Microsoft trust Bango technology to reach subscribers everywhere.

Bango, where people subscribe.

www.bango.com 

Media contact
Henry Soundy / Trisha Bahl
Wildfire
bango@wildfirepr.com 

FAQ

What is the main finding of Bango's survey on US retail subscriptions?

Bango's survey reveals that 66% of US shoppers can't afford all the retail subscriptions they desire.

When was Target Circle 360 launched?

Target Circle 360 was mentioned in the context of Bango's survey, which was released on July 10, 2024.

What percentage of US consumers want a single app to manage all their subscriptions, according to Bango?

76% of US consumers surveyed by Bango want a single app to manage all their subscriptions.

What is 'Super Bundling' in the context of retail subscriptions?

Super Bundling refers to consolidating multiple subscriptions into a single package managed by a service aggregator, simplifying payment and management.

How many retail subscriptions does the average US shopper have?

The average US shopper has five retail subscriptions, as identified by Bango's survey.

What does Bango's research suggest about the future of retail subscriptions?

Bango's research suggests that Super Bundling will become more prevalent, allowing consumers to manage multiple subscriptions through a single service.

What is the main cause of frustration among consumers with multiple retail subscriptions?

50% of consumers are frustrated because they can't manage all their subscriptions in one place.

What is an example of Super Bundling in the retail space?

In the retail space, Walmart+ offers Paramount+ as part of a bundle, and Carrefour Plus in Europe bundles Netflix.