Between 2011 and 2016, the subscription market grew by over 500%. With the largest of these retailers pulling in close to $3 billion in sales in 2016 alone, subscriptions have become big business for e-commerce. How are you contributing to this growth? That’s what we’re here to find out.
Let’s get into some numbers. McKinsey lead a study of over 5,000 Americans to “understand subscription and e-commerce trends.” We’ll use the results from that study to reach our conclusions. First, some interesting finds from the study:
To get a somewhat accurate number of what you’re spending on monthly subscriptions, we first need to split the costs into groups. For the sake of simplicity, we’ll use high-cost subscriptions ($20-$50) and low-cost subscriptions ($7-$20).
McKinsey determined that 35% of active users have 3 or more subscriptions. That means for low-cost subscriptions, you’re paying anywhere from $21-$60. For high-cost subscriptions, you’re looking at anywhere between $60-$150. A mi of high and low-cost solutions will land you somewhere in between these figures.
You have some options here. Either get the spreadsheet out and start keeping track of how much you’re paying for each subscription. You can do the math in your head and hope you’re right. That never works, by the way. The most effective option is to let Butter do the work for you. Adding your subscriptions to Butter means we calculate your total monthly costs so you know exactly what you’re paying. Plus, we let you know when payments are due so you always have enough to cover your costs.