New research published by Adyen, the global financial technology platform of choice for leading businesses, reveals that 54% of consumers in the UAE have already unsubscribed, or are planning to unsubscribe within the next 12 months from services and products they’ve set up recurring payments with.
People are, on average, signed up to three online subscriptions, spending on average Dhs 90 per subscription per month.
Adyen’s research in UAE
An overwhelming majority of consumers (91%) are signed up to a subscription. However, Adyen’s research shows which digital subscriptions people have decided to unsubscribe, or are considering unsubscribing from: film/TV (24%), priority services (31%), food delivery (36%), music (38%), gym memberships (44%), weekly food subscriptions from grocery stores (44%).
But despite analysis finding consumers looking to save by unsubscribing, the vast majority of businesses in the UAE (87%) said that they will be investing in repeat subscription purchase models over the next year. More than half (56%) said that they are introducing a new subscription service as part of their upcoming offerings.
“Getting customers to come back month after month in a subscription model takes ongoing effort. While businesses face pressure to grow their revenue, true success comes from understanding what customers want and building lasting relationships,” said Sander Maertens, Head of Middle East, Adyen.
How to do subscriptions right
Adyen’s research found consumer demands for improved subscription services across three main areas.
A personal experience
While 38% consumers in the UAE value the convenience offered by online subscription models, personalization is a must. A subscription is an investment and a commitment, so rewards are expected. UAE consumers said they liked to receive personalized offers (42%) and would stay loyal to a subscription if the experience was tailored to them (29%).
Loyalty nurtured
With so many online subscription models, it can be hard for customers to differentiate between them. In the case of the UAE, consumers said that great customer service would make them more loyal to a certain brand (48%), followed by easy cancellation and refunds (43%) and personalized discounts (42%).
Diverse payment options
While the primary payment option globally is via a credit card (49%) or debit card (57%), 31% of consumers wish to pay via direct debits and almost the same amount look to pay with a digital wallet such as Apple Pay or Google Wallet (46%). 43% of UAE consumers would be more loyal to a brand that made it easier for them to pay.
“Every part of the customer’s experience matters. People will subscribe if the service is great, the product is unique, and if the process is simple. A big part of that is making payments easy and secure. Many companies can do better by working closely with their payment providers to ensure customer details are accurate, which helps avoid issues like declined payments,” Maertens concluded.
tanvir@dubainewsweek.com
