With consumers seeking more bang for their buck, retail merchants are rising to the occasion, offering discounts for subscribing, PYMNTS Intelligence finds.
The PYMNTS Intelligence study “The Replenish Economy: A Household Supply Deep Dive,” created in collaboration with sticky.io, drew from a survey of 188 retail subscription merchants to gain deeper insight into the category. The study finds that 63% of retail subscription merchants offer a discount for subscribing.
By offering reduced prices or exclusive promotions, retailers tap into shoppers’ desire for value maximization and cost savings. This tactic not only entices new subscribers but also cultivates loyalty among existing ones, driving long-term engagement.
In fact, the PYMNTS Intelligence study last year, “Consumer Inflation Sentiment: The False Appeal of Deal-Chasing Consumers,” found that 46% of retail customers are deal chasers, willing to go wherever they will get the best price. Plus, another 34% are persuadable customers, who want to be loyal but can be wooed away by competitors for the right price.
“Shoppers have been impacted by inflation for the past two years and they are now changing their journey — kicking off their shopping by exploring sales and discounts first,” Frank Minervini, vice president and head of marketing at Ziff Davis Shopping, the parent company of RetailMeNot, told PYMNTS in an interview earlier this year.
Moreover, the prevalence of discounts in subscription-based retail signifies a broader shift toward customer-centric strategies. Retailers recognize the importance of nurturing long-term relationships with consumers, understanding that retention is just as crucial as acquisition. In this context, discounts function as a tangible manifestation of appreciation, reinforcing the notion that subscribers are valued patrons deserving of special treatment.
“We want our shoppers to know that their voices are being heard,” Chris Duncan, vice president, consumer insights and digital marketing at Claire’s, told PYMNTS in an interview in November.