John PhillipsJohn PhillipsSeptember 15, 2020


With the UK officially entering a recession for the first time in 11 years, it’s fair to say that many organisations are facing an uncertain future. Sales and revenues have been rocked in recent months and, with the economy still struggling to catch up alongside the threat of a second wave still on the horizon, we’re not out of the deep end just yet. 

This time of hardship for businesses has also brought about some key changes in consumer behaviour. The need to stay at home and socially distance in order to meet government guidelines has meant that buying preferences have altered as individuals sign up for services that they potentially hadn’t thought about before. COVID-19 has propelled a declining rate of ‘ownership’ in Britain. A 2018 report found 25 percent of UK adults believed they’d be subscribing to more services over the next five years and more research finding 57 percent of adults globally wish they could “own less stuff”.

As a result, subscription-based models have witnessed a boom in popularity, becoming a key means for businesses to ensure a stable revenue stream and for consumers to get the products they want in a convenient, low-cost way. In fact, a recent Zuora report found that more than half of subscription businesses have not been impacted by the pandemic, while one quarter are actually seeing subscriber acquisition rates accelerate.

Yet, whilst these stats are positive, subscription businesses cannot afford to be complacent – especially those offering Consumer Packaged Goods (CPG). In order to continue to prosper during these tough times and beyond, businesses need to focus on forming direct relationships with their customers, to both increase satisfaction rates and encourage loyalty. Ensuring positive customer experiences has never been more integral to future survival and success.

A shift in mindset

During the peak of the pandemic, with supermarkets and shopping centres closing their doors and millions of households asked to stay at home, many consumers took to ordering products online. Signing up to subscription-based models became a way of ensuring that they were able to access the goods and services that they wanted and needed. From groceries and meal-planning boxes to coffee delivery services, the businesses already implementing subscription-based models saw an increased demand for what they had to offer.

One such business is subscription-based recipe box provider Gousto. Despite the economy still being in turmoil, the growth that this business witnessed during the first half of 2020 – with a 115 percent spike in sales – has meant it has been able to create 1,000 new jobs as part of an expansion. In recent months, this success has been echoed by subscription businesses in many different sectors. For example, according to the Royal Mail, the growth of the subscription box economy has caused a huge surge in parcel delivery, with 15 percent of adults ordering a paid subscription box online during the first couple of months of the pandemic.

According to the same report, digital news and media also saw large growth from March through to May, with a growth rate of 110 percent in comparison to the baseline growth rate captured from February 2019 – February 2020.

This demand for subscription-based services is likely to increase as time goes by, with our recent CPG Subscription Report discovering that consumers who already have a subscription are 2x more likely to get another in the next 3 years. But, as things return to some semblance of normality and restrictions begin to ease, in order to continue to drive this growth and build loyalty within their customer-base, CPG subscription businesses need to place a renewed focus on customer experience initiatives.

Adding true value

In the past, CPG brands could let retailers worry about the customer experience; they only had to provide the products. Now, in a direct-to-consumer reality, CPG brands need to forge relationships based on customer experiences they themselves have created if they want to succeed. Creating a seamless and positive experience has never been more important to ensure stability moving forward. But what is it that makes a positive great experience?

For consumers, whether in prosperous times or in the midst of a global pandemic, the priority is remarkably consistent: they want subscriptions to deliver real value. But their definition of value is much more than simply a price point. Whilst saving money is important to 72 percent of consumers when signing up to a subscription service, it will often not be enough to make them stay long term. This is because cost alone does not equal a good customer experience and is, therefore, not the true driver of subscription decision making.

Today’s consumer wants to be put in the driving seat – therefore businesses who ensure both flexibility and convenience are likely to come out on top. For example, the ability to opt-out or even just temporarily suspend a service is seen as a really important factor. Moreover, the fear of being bound to a company or service is enough to put 42 percent of consumers off signing up in the first place. The delivery mechanism for the subscription must also be more convenient than traditional purchasing. It must take the pain out of tackling the high-street but still provide the experience at home for customers. There is a common thread that the most popular subscriptions will save time, deliver to the home or be something that the customer would struggle to get hold of under normal circumstances.

Customisation is also crucial when it comes to improving the customer experience. Consumers have higher expectations for a subscription model than they do with a single purchase. Taking unique preferences into account is likely to enable businesses to build a better relationship with their customers, encouraging a longer commitment and lessening churn.

In fact, research from the Subscribed Institute recently discovered for companies where one in 10 subscriptions has a change after the initial sign-up, for example, this could be an upgrade, downgrade or add-on, the growth rate more than doubles to 20 percent YoY revenue growth.

Once these models are adopted, focusing on adding value and improving the overall experience for customers will prove critical for building and retaining loyalty long term.

Getting ahead of the game and tapping into the subscription economy now will not only help organisations to bounce back following the global pandemic. It could help ensure future success. However, in order to capitalise on the changes in consumer behaviour and come out on top, businesses need to focus on adding true value and improving the overall experience for customers. Instilling the right blend of flexibility, convenience and customisation for those using a product or service could help your business boost profitability further down the line.

Inform. Inspire. Include.
A free way to improve your business.

Customer Experience Magazine is the online magazine packed full of industry news, blogs, features, reports, case studies, video bites and international stories all focusing on customer experience.



UK Trademark UK00002648900

EUIPO Trademark 018131832

Contact Information

For article submissions:
Paul Ainsworth

For general inquiries, advertising and partnership information:
Tel: 0207 1932 428

For Advertising and Guest/Sponsored posts:

For Masterclass enquiries:
Tel: +44 20 86386491

Customer Experience Magazine Limited
Company number: 12450532
International House, 24 Holborn Viaduct,
United Kingdom, London, England, EC1A 2BN


Find a job in customer support with Jobsora


wellbutrin decreased libido pulmonary disfunction how to raise libido male alldaychemist prescription amyl nitrate poppers for sale erectile dysfunction pills gnc alternative to flomax will work for ed viagra dosage instructions increase amount of sperm ed meds by mail pill m 10 when will generic levitra be available levitra without a doctor prescription big penis supplement pills for sale do i have low testosterone does exercise help you grow gmc vitamin store viagra condoms visible erection side affects of viagra wives go wild review how to increase endurance in bed safest place to buy viagra online ginseng herbs erection cream biggest erected penis male enhancement solutions extendz commercial buying sildenafil citrate online smile care club review how long does medicine last shaft penis when do men penis stop growing sexual drink names enhancing penis magnum supplements viagra competitors cum volume surgery to increase penis size bathmate size guide taking half a viagra for fun

wellbutrin side effects weight loss weight loss surgery forums mama june weight loss surgery virtual weight loss models ncis mcgee weight loss medifast weight loss pure weight loss garcinia cambogia countess vaughn weight loss weight loss steroids for females jeera for weight loss does magnesium help with weight loss mercy health weight loss quick weight loss tricks vegan weight loss diet weight loss journey blog weight loss tablets watermelon diet weight loss mushroom pills for weight loss weight loss newsletters zi xiu tang bee pollen diet pills congratulations on weight loss weight loss and hypothyroidism 2 week weight loss diet zumba dance videos for weight loss slimfast weight loss best stimulant for weight loss weight loss clinic douglasville ga rapid weight loss drink books on weight loss weight training diet for weight loss does breastfeeding help weight loss is cucumber good for weight loss weight loss pills rite aid strength training for weight loss plan 2019 weight loss pills coffee diet pills shred diet pills reviews full diet plan for weight loss where can i buy diet pills with ephedra fast weight loss pill fda recommended diet pills weight loss surgery in tijuana

ben greenfield cbd cbd hemp oil georgia age cbd oil sacramento cbd oil solutions coupon is cbd oil legal in ct what is a compound science definition cbd oil oklahoma best cbd for autism cbd hemp direct reddit cbd usage statistics does cbd help insomnia diamond cbd gummies hemp cbd vs regular cbd cbd topicals for pain cbd oil and flu real cannabis cbd harmful cbd vegan gummies cbd and non alcoholic fatty liver momentum physical therapy reviews cbd chiro cream cannibis capsules cbd haze strain total health complete cbd oil spectrum corporate office contact where to buy cbd oil in portland pure cana what is dabbing cbd smok g priv problems hotels in johannesburg cbd ensure plus weight gain reviews cbd 101 ventura define mononuclear cbd oil effects on parkinsons disease suisse supplements klonopin and weed cbd 5 htp heisenberg strain cbd oil in eugene oregon cbd oil testing buy cbd oil in wyoming safe cbd oil brands

enano vape nu way vape vape beast gs g3 ecig patible gs g3 ecig mercury vapor light vape tank stands ecig mod stands sense blazer pro vs uwell crown 3 vape juice coming out of air holes stok vaporizers what happens when you vape expired juice vaporesso polar review e cigarette menthol refills illinois vape laws vuse diacetyl e cigarette choice coupon code aegis geekvape ecig nicotine poisoning ravage 230 ecig holders gator box mod vapor juice e liquid vaporizer liquid with nicotine uwell hypercar review mouth to lung tank smok alien puffs over meaning milkman e juice clone jolt vapor hudsonville innevape hours e cigarette side effects negatives famous vapers vapor bar stools kanger vertical coil best mods vape accessories for vape wud vape smok power engine 400w how many mg of nicotine in a cigarette rafale x rda uwell best vapor flavors uwell crown really strong first hit best e cig under 100