Wrong Product Info and Ratings Drive Auto-Fill Subscription Cancellations

Consumers may choose to use auto-fill subscriptions, but they have little tolerance for company mistakes.

Convenience is key for consumers who subscribe to auto-buy retail products, even more so than for enjoyment or savings and benefits associated with the subscription programs, data shows. Thirty-eight percent of these subscribers say convenience is the main reason, while 27% do so for enjoyment and 14% for cost, per a recent PYMNTS Intelligence market research study.

The term retail subscriptions refers to subscriptions that provide regular shipments of products from retailers, such as those in fashion and accessories, food and beverages, pet products, beauty, or personal care. Amazon Subscribe & Save, Hello Fresh, Dollar Shave Club and Chewy are among the main competitors that provide these services, which were included in “The Replenish Economy: A Household Supply Deep Dive,” a PYMNTS Intelligence research in collaboration with sticky.io that examines the current landscape of the retail replenish economy.

The report highlights the particular importance of service quality in retaining these subscribers. Consumers who prefer scheduled subscriptions are 9% more likely than other consumers to cancel if there is a product information issue, such as when a merchant provides an inaccurate or misleading review.

According to the study, only 30% of the lowest-performing merchants offer product ratings and reviews, making this the primary driver of abandonment. In addition, these subscribers are nearly 6% more likely than average to cancel their subscriptions if items are incorrectly listed as being in stock and 4.4% more likely to cancel if they cannot leave feedback on the products they subscribe to.

The fact that these subscribers are more likely to cancel is important as research reveals that 4 in 10 loyalist consumers do most or all their regular shopping via autofill subscriptions. Loyalists are a class of subscribers that keep their subscriptions the longest and the ones with the highest lifetime value (LTV). On average, their LTV averages more than $2,500 on retail subscriptions, per other PYMNTS Intelligence research.

Similarly, millennials are leading the way in adopting these subscriptions, with 39% of them satisfying most or all their shopping needs through subscriptions, meaning that on the other side of the coin, a poor service experience can have a particularly significant impact among this group. This highlights the importance of catering to this demographic and creating engaging online subscription experiences that foster long-term loyalty and satisfaction — and that continually get product information details correct.

The consolidated market of retail product subscriptions presents a lucrative opportunity for online merchants to enhance their retail subscription offerings. Ensuring the accuracy of product information and reviews, delivering consistent service, offering payment flexibility, and providing control and transparency in the subscription process are key ways to reduce subscriber churn.