New Vindicia Survey Uncovers Strong Consumer Interest In Value-Added Subscription Services

Consumers are willing to pay up to $4 more per month for
the perks that matter most

REDWOOD CITY, Calif.–(BUSINESS WIRE)–Vindicia,
a leader in enterprise-class subscription billing, today announced the
results of a new study that sought to understand consumer demand for
value-added subscription services. Data from the survey, culled from
1,000 U.S. adults who have at least one paid subscription, suggests a
nearly unanimous interest for extras and a willingness to pay more for
the added benefits that matter to them.

More specifically, 90% of consumers are interested in upgrading
from a basic subscription to a package with added privileges such
as discounts, exclusive offers and access to events or activities with
other subscribers. Of those, more than half are either “extremely
interested”
or “very interested” in these types of
privileges. In addition, 76% of consumers are willing to pay $3.99
extra
each month for a subscription that gives them special access
to premium content or members-only benefits, with that percentage
increasing to 84% if the price is set at $1.99 extra.

The study also revealed why some consumers choose to cancel their
subscriptions. Among consumers who recently canceled, 39% said
they didn’t see the value of the subscription, 36% said they no
longer wanted the financial obligation, and 34% said the
subscription was no longer relevant to them. Another 13% cited
billing complications, such as difficulties with updating credit card
information and confirming payment details.

“Vindicia’s subscription survey offers two compelling truths,” said Gene
Hoffman, CEO of Vindicia. “First, as long as service providers deliver
sustained and obvious value for money, customers will stick around.
Second, demand for value-added benefits is so high that service
providers can consider it a reliable avenue for significant business
expansion. Our survey found that despite the notion that consumers don’t
want to add significant financial obligations to their lives, they are
very willing to pay for the services they value.”

The survey also revealed the following key figures:

Video, shopping and audio are the most important types of services:

  • 45% of respondents cited video services such as HBO Now,
    Netflix and Hulu are most important to them
  • 30% cited shopping services such as Amazon Prime and Google
    Express
  • 8% cited audio services such as Apple Music, Pandora, Spotify
    and Audible

As for engagement:

  • 30% said they use their most-utilized subscription service at
    least 20 hours per week
  • 28% use them 11 to 20 hours per week
  • 42% use them 1 to 10 hours per week

And when it comes to ranking the number one reason for subscribing to
digital services to begin with, convenience was the top of the
list, followed by the value of the service, cost savings, selection
and finally personalization.

Click here
for more information about the survey and the complete results.

About Vindicia

Vindicia brings enterprise-class innovation to consumer-facing
subscription billing to help digital companies acquire and retain more
customers by making payments seamless, secure and easy. Vindicia keeps
customers connected to the subscription services they love, and
companies connected to the subscription revenues they need. Vindicia has
processed more than $21 billion globally and generates over $90 million
in annual incremental revenue for clients. Clients include TransUnion
Interactive, IAC, Bloomberg, Vimeo, and Next Issue Media. Vindicia was
recently ranked the number one billing software solution on the market
by Business-Software.com, and recognized as a “Top 100 Promising Tech
Companies” by CIOReview magazine. For more information visit: www.vindicia.com.

Contacts

for Vindicia
Jenna Finn, 415-249-6777
Jenna.finn@finnpartners.com