Bango study reveals US shoppers struggle with retail subscriptions

Recent Bango research highlights that consumers are finding it challenging to manage and afford the growing number of retail subscriptions. The study surveyed 3,000 Americans with a retail subscription and found that 66% of US shoppers cannot afford all the subscriptions they desire.

The research follows the launch of Target's new membership program, Target Circle 360, which is designed to enhance the shopping experience by making it more convenient and affordable. Target's entry into the subscription market follows similar moves by Walmart with Walmart+ and Amazon with Amazon Prime, all aimed at providing greater customer value and altering consumer shopping habits in the US.

On average, US shoppers have five retail subscriptions. The proliferation of these services has led to an increase in consumer frustrations. Half of those surveyed expressed annoyance at being unable to manage all their subscriptions in one place, and 76% indicated a desire for a single app to handle all their subscriptions.

Bango's research suggests that Super Bundling may emerge as a solution to this issue. Super Bundling involves aggregating multiple subscriptions into a single package with one payment, potentially managed by a service aggregator like a telecommunications company. An example is Verizon's +play content hub, which simplifies subscription management by consolidating several services under one billing cycle.

Almost a third (31%) of the surveyed shoppers already receive their subscriptions as part of a bundle rather than subscribing directly to each provider. This indicates a growing acceptance and demand for bundled subscription services.

Commenting on the survey results, Anil Malhotra, Chief Marketing Officer at Bango, stated, "The way we shop is changing again. The rise of subscription boxes and same-day delivery has transformed retail in recent years. As more retail giants begin to develop their offerings and drive loyalty through subscriptions, it's only natural that they will look to enter the Super Bundling space."

Retail subscriptions such as Walmart+ in the US, which includes Paramount+ in its offering, and Carrefour Plus in Europe, which bundles Netflix, are early examples of this trend. These bundled services reflect a shift in the retail landscape, indicating that more retailers may adopt Super Bundling to meet consumer demands for easier subscription management and cost savings.

The trend towards Super Bundling in retail subscriptions reflects a growing consumer preference for simplified management and cost-effective solutions amidst the proliferation of subscription services. As major retailers like Target, Walmart, and Amazon expand their subscription offerings, the shift towards bundled services could reshape how consumers engage with and manage their retail subscriptions in the future.