Data shows subscriptions are here to stay
Author: Brian Wallace, Google small business advisor, small business founder and operator
Subscription models have taken the US by storm — and they’re growing 3.7x faster than companies in the S&P 500. There's no question these days: there’s a subscription service for just about everything. With the growing trend, check out below to see what subscription service is getting the most interest in your state.
Published: October 26, 2023
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Brian Wallace is the founder and president of NowSourcing, a renowned content marketing agency that specializes in converting complex ideas into simple and engaging visuals. Brian also serves as a Google small business advisor, where he provides guidance and support to SMBs on how to successfully leverage digital marketing. His expertise in the field has also earned him a seat on the advisory board of the SXSW festival, where he helps shape the future of technology, business and culture.
He goes on to share, “I find many small businesses are using printers that were never intended for business purposes. I encourage small businesses to plan the printer they choose for their business, rather than rushing out to purchase whatever they find when their last rush-purchased printer breaks."
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Data Shows Subscriptions Are Here To Stay
Subscription models have taken the US by storm — and they’re growing 3.7x faster than companies in the S&P 500
The State Of The US Subscription Model
1. In the US alone, there are:
1. 225 million subscriptions
2. 61 million subscribers
3. 3.7 subscriptions per persons
2. Subscription services
1. DTC: Direct to consumer
1. There are more than 27,000 DTC subscription services selling straight to customers rather than a middleman
2. B2B: Business to business
3. Curated (55%): Includes media, boxes, and physical products
1. Birchbox
2. FabFitFun
3. Bark Box
4. Replenishment (32%): Includes groceries, office supplies, and toiletries
1. Amazon Subscribe And Save
2. Lexmark OnePrint
3. Dollar Shave Club
5. Membership / Access (13%): Includes membership perks and other freebies
1. Some of the most popular of these include:
1. Amazon Prime (64% of consumers)
2. Sam’s Club (28% of consumers)
3. Best Buy (10% of consumers)
4. Nike (7% of consumers)
5. Instacart Express (4% of consumers)
3. What subscription is your state most interested in?
1. Source: Google Trends gathered on 10/03/2023
- Alabama - Makeup
- Colorado - Exercise
- Hawaii - Streaming
- Kansas - Dog Boxes
- Massachusetts - Security
- Montana - Radio
- New Mexico - Video Game
- Oklahoma - Clothing
- South Dakota - Security
- Virginia - Streaming services
- Alaska - Streaming
- Connecticut - Newspaper
- Idaho - GPS (eg. Garmin)
- Kentucky - Snacks
- Michigan - Newspaper
- Nebraska - Hunting
- New York - eBook
- Oregon - GPS (eg. Garmin)
- Tennessee - Perfume
- Washington - AI (Midjourney)
- Arizona - Wine
- Delaware - Video Game
- Illinois - VPN
- Louisiana - Audiobook
- Minnesota - GPS (eg. Garmin)
- Nevada - Podcast
- North Carolina - Business (Shopify)
- Pennsylvania - eBook
- Texas - AI (ChatGPT)
- West Virginia - Streaming
- Arkansas - Perfume
- Florida - Cat Boxes
- Indiana - Ink
- Maine - Streaming
- Mississippi - Streaming
- New Hampshire - Craft (cricut)
- North Dakota - Discount and Allowances (aka Hiatus)
- Rhode Island - Security
- Utah - Science (KiwiCo)
- Wisconsin - Makeup
- California - Security
- Georgia - Food
- Iowa - Gaming
- Maryland - Security
- Missouri - Video game
- New Jersey - Security
- Ohio - Book boxes
- South Carolina - Streaming
- Vermont - Video game
- Wyoming - Streaming
There’s good reason why the subscription model continues to grow: It’s convenient, very simple, and engaging for consumers, small business owners and operators
Why Are Consumers and Business Owners Choosing Subscription Models?
1. Affordable convenience
1. 39% say it’s because they are cost-effective
2. 40% of U.S. consumers say they use subscriptions because they are convenient
3. Predictable for your time and budgets
2. Usage based pricing
1. The replenishment subscription can help you get items when you need them — not just every month
2. This means you can base your delivery on usage which enables you to put multiple subscription goods on autopilots
3. Changing demographics
1. Younger generations are more likely to subscribe to digital and physical subscription services
1. Baby Boomers: 9.4%
2. Gen X: 27.2%
3. Millennials: 39.3%
4. Gen Z: 21.9%*
* This number is only projected to grow as Gen Z comes into its own
4. COVID-19 lockdowns
1. The inability to receive goods through normal channels boosted consumer interest in subscription-based services
1. Subscription based businesses grew by 11.6%
2. Non-subscription based businesses shrank by 1.6%
5. Plain fun
1. Some subscriptions are just as much about fun as they are about function
2. 35.6% of consumers say getting a subscription is enjoyable
As the subscription industry continues to grow, many industries are getting into offering subscriptions for the first time
Unique, Modern Subscription Themes
1. Plants as a subscription
1. Receive new houseplants every 1, 3, 6, or 12 months*
2. Purchase plants specific to your indoor conditions
3. Choose from pet and child-friendly plants
4. Examples:
1. My Garden Box - The Plant Club
• mygardenbox.com
2. The Sill
• thesill.com
3. Horti
• heyhorti.com
*1, 3, 6, or 12 months
2. Science as a subscription
1. Purchase brand-specific merchandise
2. Discover new accessories
3. Access brand-new items at a reduced rate
4. Examples:
1. Matter
• stemcelltulsa.com/products/matter
2. BoneBox
• skullsunlimited.com/pages/bonebox
3. KiwiCo
• kiwico.com
3. Print as a subscription
1. Save up to 50% on toner costs
2. Have toner sent to your business based on usage
3. Plan monthly expenses with pay as you go access to a printer
4. Example:
1. Lexmark OnePrint
• oneprint.lexmark.com
4. The way we track our subscriptions is also likely to change
1. TrackMySubs
• trackmysubs.com
2. Rocket Money
• rocketmoney.com
3. Hiatus
• hiatusapp.com
With clear, sustained, and upward growth in practically every state, it’s clear: The subscription model is here to stay
Presented by Lexmark™
The Lexmak GO Line™ series combines enterprise-class security and reliability with small-business-friendly size, speed, and pricing.
developed by NowSourcing
Sources
https://www.zuora.com/resources/subscription-economy-index/
https://www.insiderintelligence.com/content/state-of-subscriptions-5-charts
https://blog.pipecandy.com/post/us-dtc-subscriptions-report
https://www.empiretoday.com/most-popular-subscription-boxes
https://www.lexmark.com/en_us/services/lexmark-oneprint.html
https://www.subscribed.com/read/news-and-editorial/the-2020-subscription-economy-in-five-charts
