Demed L’Her, CTO at DigitalRoute commented: “Since the pandemic when worldwide streaming subscriptions surpassed one billion, there has been a significant drop. Insider’s latest research shows that as of August, nearly a third (30%) of people reported cancelling an online subscription service in the past six months.
This is largely due to the rising cost of living experienced globally that is leaving households with reduced budgets for luxuries like digital subscriptions. Despite this, the subscription market is far from dead, with most people retaining some despite tightened budgets.
However, considering the ongoing economic challenges, businesses need to consider adapting if they are to be retained by customers in the long term. The key to this is ensuring that the product adds value to the life of the customer.
The best way to understand what your customers really value is by looking at their actual usage of your services. That usage can be accurately measured and analysed. Ultimately every digital company creates usage data which can be collected, monitored, and monetised. Tools exist to capture and categorise usage in real-time to allow companies to greater understand how the platform is being used and how it could adapt accordingly.
This may allow the business to implement a usage-based pricing model that means customers only pay for what they really use and value on a platform. This creates a fairer and for some, cheaper subscription model. Which is likely to be welcomed by most customers as the cost-of-living crisis continues and might make the difference between retaining them or seeing them churn.”
To find out more about how businesses can make better use of their usage data, visit: https://www.digitalroute.com/