New Report Finds 84% of Subscription Businesses Struggle To Acquire New Customers

Subscription Business Lag Behind Ecommerce Merchants in Offering Basic Customer Conversion Tools

BOSTON--()--A service once considered the mainstay of only the newspaper and magazine trade, digital payments solutions now make subscription commerce an important cornerstone to the rapidly evolving eCommerce market. Yet 84 percent of subscription commerce businesses struggle to acquire new customers and fail to offer basic features that are now “standard operating procedure” for their ecommerce siblings - product reviews and recommendations, free shipping and rewards.

These findings are from the newly released Subscription Commerce Conversion IndexTM(SCCI), a collaborative effort between PYMNTS.com and Recurly. The Index is based on a proprietary model that measures the friction in converting an interested shopper to a customer when presented with a subscription commerce offer. The Index is the result of analyzing more than 2000 points of data across 176 subscription commerce merchants in nine different categories in order to benchmark what it takes to monetize subscription commerce initiatives.

The report also features an in-depth interview with the CMO of on-demand clothing retailer Trunk Club, who reveals the ways in which they’ve overcome subscription commerce friction and built a successful subscription commerce business.

From online streaming to software products, subscription services have more recently grown to include boxes for physical goods, ranging from beauty products to snacks and alcohol, and even individual consumables presented on retailer web sites. The Subscription Commerce Conversion IndexTM gives all merchants with subscription commerce ambitions the insight and analysis to build a better subscription commerce engine.

About PYMNTS: PYMNTS.com is where the best minds and the best content meet on the web to learn about “What’s Next” in payments and commerce. Our interactive platform is reinventing the way in which companies in payments share relevant information about the initiatives that shape the future of this dynamic sector and make news.

About Recurly: Recurly, Inc. delivers enterprise-grade subscription management to thousands of SaaS, media, mobile, consumer goods, productivity and publishing businesses worldwide. Businesses like AccuWeather, Sling Media, JibJab Media, Asana, HubSpot and Twitch.tv depend on Recurly's ability to cut through the complexity of subscription management to drive recurring revenue growth. Since its 2010 launch, Recurly has deployed subscription billing for companies in 32 countries, making it a trusted provider of subscription management services.

Contacts

PYMNTS.com
Melisa Filipos, 617-851-0814
mfilipos@pymnts.com

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