Nearly half (47%) of young US consumers aged 18 to 34 agree that they would consider signing up to a subscription box, the service that regularly delivers products to the home, a recent survey has found.
According to research firm YouGov, that means young adults are more open to these services because just a third (33%) of adults of all ages agree they are either very likely or somewhat likely to pay for a regular subscription box.
Even though these potential customers constitute a minority of all US consumers, it appears brands still could be missing out on new revenue streams because YouGov discovered that around 80% of US adults have never subscribed to a service that regularly delivers products, such as razors, shampoo, cosmetics or groceries.
And a slightly higher proportion of consumers (85%) have never subscribed to services that deliver household goods, such as paper towels or washing powder.
YouGov did not provide a sample size for its survey, which was conducted in the second week of January this year, but the company also explored consumer attitudes about the potential benefits and pitfalls of subscription boxes.
Accordingly, the top perceived potential benefit of subscription boxes is that they save consumers time from shopping (48%), while other advantages include never running out of a product that they need (39%), not having to remember to get the products in the first place (33%) and saving money by subscribing in bulk (29%).
Interestingly, consumers aged 18 to 34 were found to be more motivated by the chance of saving money (36% versus 29%) and simplifying their budgets (26% to 18%). Younger shoppers are also more eager about the ability to try out new products (26% versus 20%).
However, younger consumers are mostly in agreement with the average about the potential disadvantages of subscription boxes, with more than half of all respondents (53%) concerned about the ultimate cost of a subscription box.
A similar proportion (52%) also worry that they may not use the delivered products quickly enough, leaving them with more than they need.
Publication of the YouGov findings coincided with new research from the UK, which found 70% of senior business leaders believe membership and subscription models will be key to their future growth, yet only a quarter (24%) are currently operating one.
According to research firm YouGov, that means young adults are more open to these services because just a third (33%) of adults of all ages agree they are either very likely or somewhat likely to pay for a regular subscription box.
Even though these potential customers constitute a minority of all US consumers, it appears brands still could be missing out on new revenue streams because YouGov discovered that around 80% of US adults have never subscribed to a service that regularly delivers products, such as razors, shampoo, cosmetics or groceries.
And a slightly higher proportion of consumers (85%) have never subscribed to services that deliver household goods, such as paper towels or washing powder.
YouGov did not provide a sample size for its survey, which was conducted in the second week of January this year, but the company also explored consumer attitudes about the potential benefits and pitfalls of subscription boxes.
Accordingly, the top perceived potential benefit of subscription boxes is that they save consumers time from shopping (48%), while other advantages include never running out of a product that they need (39%), not having to remember to get the products in the first place (33%) and saving money by subscribing in bulk (29%).
Interestingly, consumers aged 18 to 34 were found to be more motivated by the chance of saving money (36% versus 29%) and simplifying their budgets (26% to 18%). Younger shoppers are also more eager about the ability to try out new products (26% versus 20%).
However, younger consumers are mostly in agreement with the average about the potential disadvantages of subscription boxes, with more than half of all respondents (53%) concerned about the ultimate cost of a subscription box.
A similar proportion (52%) also worry that they may not use the delivered products quickly enough, leaving them with more than they need.
Publication of the YouGov findings coincided with new research from the UK, which found 70% of senior business leaders believe membership and subscription models will be key to their future growth, yet only a quarter (24%) are currently operating one.
Sourced from YouGov; additional content by WARC staff
