Although subscriptions have been around for decades, the pandemic was instrumental in its recent increased adoption as businesses needed it to thrive in such critical moments. In turn, subscriptions have revolutionized the way people buy everything, from apparel to beauty products, groceries to pet supplies, and even the way people consume media, and the list is endless.

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According to a Harris Poll survey, 72% of US citizens plan to keep their music subscriptions, 64% plan to keep their exercise/fitness/wellness subscriptions, and 54% plan to keep their digital learning subscriptions even after the pandemic.

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The subscription service industry is booming with widespread adoption that is here to stay. This business model is gaining popularity as it holds several benefits for merchants and consumers alike. Some of the benefits for merchants and customers include:

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Benefit to Merchants

• Recurring and predictable revenue
• Increased revenue expansion
• Improved customer engagement

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Benefits for Customers

• Convenience
• Product personalization experience
• Economical and cost-saving

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With the need to stay in business during the lockdown, it is no surprise that many industries, including brick-and-mortar stores, are adopting subscriptions as a revenue stream.

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The 5 Industries Adopting Subscription

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1. Education Industry

More than 1.2 billion children globally completed their school year online in 2020. Although the pandemic has spurred the adoption of subscriptions, the rising burden of student loans due to higher education costs will drive students and professionals to consider eLearning as a feasible choice. As a result, the global eLearning market is predicted to increase dramatically to over $370 billion by 2026. This has also pushed more eLearning platforms to adopt subscriptions more than ever.

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2. Healthcare Industry

Subscriptions are also being considered by more healthcare companies as a way to reduce point-of-service costs. MDVIP is a great example of a health insurance subscription. Instead of paying via insurance or cash, they charge customers an annual flat rate. The subscription includes preventative check-ups as well as some value adds such as custom meal plans, personalized fitness plans, and exclusive access to physicians.

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3. Automobile Industry

The shift to e-commerce subscriptions fueled by changes in customer behavior has become evident in the automobile industry too. In the automobile industry, consumers are increasingly favoring "use" over "ownership" these days.

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Automobile manufacturers such as Jaguar, Audi, and Cadillac have all provided car subscriptions in response to this change in customer taste. In 2019, the global car subscription industry was worth $3.55 billion, and it is expected to grow to $12.09 billion by 2027.

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4. Ecommerce Industry

Even though the pandemic hastened the growth of all three forms of e-commerce subscriptions, they have all been continuously expanding over the last few years. As more people opt for subscriptions over monthly shopping lists, the global subscription eCommerce market is estimated to reach $478.2 billion by 2025.

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5. Publishing

Publishers are investing in extending their reader revenue model by increasing their digital footprint and guaranteeing a great user experience to establish a more robust business.

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Subscriptions have proven to be a lifesaver for publishers and conventional print media. While advertising earnings were reduced during the pandemic, subscriptions replaced advertising as the principal source of revenue.

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Final Thoughts

The automobile industry's shift to subscription and the four other industries are great examples of how established companies can adapt to shifting consumer tastes. With the first subscription service or product arriving at the homes of consumers, the number of industries relying on subscriptions has exploded. With the growing customer demand for subscriptions, there’s no better time for new and established brands to hop on the subscription train.

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So, whether you're looking to add subscriptions to your existing product and service or looking to scale your subscription business, now is the best time to join the subscription bandwagon. If you need help with getting started or have questions, you can write to me at success@trychargezen.com or reach out to the Chargezen support team.