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How has digitally-enabled subscription impacted consumer behavior and the CPG industry?

This was the question SKIM looked to answer when they launched a research study in September 2021.  SKIM began a multi-category, multi-country study of consumer attitudes, motivations and behaviors related to subscriptions.

As a result of the events of the past year the digital transformation has been accelerated. Many new consumer behaviors have emerged, one important emerging area is digitally-enabled subscription behavior. As decision behavior experts, SKIM pays close attention to these changes.

In this research we interviewed 4,000 US consumers about their attitudes, usage, and behavior in ecommerce tangible consumer goods subscriptions across personal care, household products, beauty, and food and beverage categories.

At TMRE we revealed the results.

Key takeaways:

  • How digital-based subscriptions has changed radically, made mainstream by Netflix and Spotify, been enabled by ecommerce and fueled by COVID
  • How retention and churn are the Achilles heel of subscription business model strategies
  • Why price-value relationship and the motivations hierarchy are much broader and more complex than in previous generations