Subscription spend triples - with home security showing the greatest potential.

Subscription spend in the UK tripled in the UK according to the YouGov 'A Nation Subscribed' 2017 report.  The UK adult population spends three times more per month on subscription services than the previous year. The average UK monthly spend is now £56 compared to £18.49 in 2016. 

Zuora, a marketing-leading enterprise software company that designs and sells SaaS applications for companies with a subscription business model, have developed a Subscription Economy Index which found that companies adopting subscription models are growing at a far faster rate. 

Subscription businesses grew revenues about 9 times faster than S&P 500 company revenues from January 2012 to March 2017. And over the past six months, European subscription companies grew even faster at a rate of 22% YoY.



This trend is set to continue along its growth trajectory as an estimated 25 percent of UK adults predict that they will be subscribing to more services over the next five years. 

The report also found that subscription-based businesses in the UK must overcome a series of negative consumer perceptions about subscriptions if they are to continue to grow their market share and disrupt incumbents. The research study shows that the key barriers to adoption are: difficulties of trying to unsubscribe (53%), price/feature changes during the contract period (51%), fear of the value exchange, (43%) complexity of subscription contracts (38%)and poor customer service (37%).

John Philips VP, EMEA, Zuora said “The only way businesses can sustainably maintain relationships with consumers and grow is by moving away from their product-centric mentality and creating long-term brand affinity based around flexible subscription-based services.” 

https://www.zuora.com/resource/a-nation-subscribed-2017-state-of-the-uk-subscription-economy/