![\"\u2122\"](\"https://s.w.org/images/core/emoji/15.0.3/72x72/2122.png\")
\u201d shopper has come back to malls and merchants, even if the actual transaction might happen on the device. Merchants must be agnostic as to where the sale happens, with a seamless continuum between the store and the website. When Tien Tzuo coined the term \u201csubscription economy\u201d in 2007, he envisioned a future where consumers would prioritize access over ownership.
\nAs the CEO of subscription management platform Zuora, Tzuo has been at the forefront of this economic shift for nearly two decades. Today, as the subscription model reaches maturity, companies are grappling with evolving consumer expectations, the specter of subscription fatigue, and the need for more sophisticated monetization strategies.
\nThe key to success in the subscription economy, according to Tzuo, is creating an \u201cessential\u201d relationship with the customer. \u201cDon\u2019t focus on the sale, focus on the ongoing relationship,\u201d he told PYMNTS CEO Karen Webster. \u201cEarn the right to establish an ongoing relationship slowly over time.\u201d
\nThis shift in mindset requires companies to think beyond traditional transactional models. Tzuo pointed to the example of a coffee subscription service that\u2019s exploring ways to better understand customer habits.
\n\u201cThey\u2019re asking questions like, \u2018Do we sell you a coffee maker? Do we sell you a grinder?\u2019\u201d he said. \u201cAre there other things that we can do to help understand what your coffee habits are and deliver you actually what you need where you don\u2019t have to think about it anymore?\u201d
\nBy focusing on the broader need \u2014 in this case, fresh ground coffee every morning \u2014 companies can create a more valuable and sticky relationship with their customers. This approach also opens up opportunities for expanded services and revenue streams.
\nWhile Tzuo believes that \u201canything could be a service,\u201d he acknowledged that there are challenges in making certain products and industries subscription-friendly. The key is understanding the underlying need that the product or service fulfills.
\nTzuo cited examples of heavy equipment manufacturers like Caterpillar and John Deere embracing subscription models. \u201cAre you really interested in the excavator? Or are you just trying to move some dirt?\u201d he asked. By reframing the value proposition, these companies can offer more flexible, service-oriented solutions.
\nEven seemingly unlikely candidates for subscription, like flooring, are being reimagined. Tzuo mentioned a company developing a \u201csmart floor\u201d that could measure foot traffic for retail or public spaces. \u201cThese are companies that are really saying, \u2018Look, just pay us a subscription fee and we\u2019ll make sure that the carpets are always clean and good,\u2019\u201d\u00a0he said.
\nHowever, the challenge lies in finding a large enough market to make these niche services sustainable. As Tzuo noted, \u201cThere\u2019s a riddle of there being a big enough market to make a service sustainable.\u201d
\nAs the subscription economy matures, calls for increased regulation have grown louder. The Federal Trade Commission (FTC) has expressed interest in further regulating the space, particularly around issues of transparency and ease of cancellation.
\nTzuo sees potential benefits in some regulation, particularly in establishing trust and reducing friction for consumers. \u201cAnything that helps take friction out of the system or prevents a few bad apples from ruining everybody\u2019s experiences … the more trust, the less friction, the better off we are,\u201d he said.
\nHowever, Tzuo believes the industry could potentially self-regulate, pointing to examples like the PCI standards in the credit card industry. \u201cIf the industry does not want the government to do it, the industry should absolutely regulate it,\u201d he said. \u201cThe more standards bodies, the more people come together and seal of approvals, those are always good.\u201d
\nThe lack of industrywide standards may be partly due to the relative newness of the subscription economy. \u201cWhen we started, Spotify didn\u2019t exist. Uber didn\u2019t exist. Netflix was not a streaming service,\u201d Tzuo said. \u201cA lot of these things are relatively new. Peloton is relatively new as well. So I think the time has come.\u201d
\nAs the subscription economy approaches its third decade, Tzuo remains bullish on its prospects. He dismisses concerns about \u201csubscription fatigue,\u201d instead seeing a market that\u2019s becoming more sophisticated and competitive.
\n\u201cWhat we\u2019re seeing certainly is there\u2019s been a wave of companies that were able to take advantage of this business model, but now competition is higher,\u201d Tzuo said. \u201cConsumer expectations are greater. And so I think you\u2019re gonna see the sophistication level go much higher.\u201d
\nTzuo predicted that successful companies will focus on giving customers more choice and flexibility. \u201cThis is about letting them manage their own lives and manage their own needs and manage their own subscriptions,\u201d he said. This may lead to a pendulum swing between bundled and unbundled offerings, as companies strive to meet diverse customer preferences.
\nThe integration of artificial intelligence (AI) is also poised to play a big role in the evolution of subscription services. Tzuo sees AI driving more sophisticated pricing and engagement strategies, particularly in areas like metered usage and consumption-based models.
\nAs the subscription economy continues to mature, the companies that can strike the right balance between choice and simplicity are likely to come out on top. \u201cIf I\u2019m a consumer and I have a choice, do I want to buy and spend a lot of money on a physical product and deal with obsolescence, deal with ownership, or would I rather simply pay a fee that I can dial up when I need, dial down when I need, and give myself more flexibility?\u201d Tzuo asked. \u201cOf course, I\u2019m going to opt for the latter.\u201d
\nFor Tzuo and the subscription economy he helped define, the journey from disruptive idea to economic mainstay is nearly complete. The next challenge will be navigating the complex landscape of consumer expectations, regulatory scrutiny, and technological innovation. As the subscription model enters its next phase, the companies that can deliver both value and flexibility are poised to thrive in this new economic paradigm.
\nThe post Zuora CEO Warns of ‘Subscription Sophistication’ Gap as Market Matures appeared first on PYMNTS.com.
\n", "content_text": "When Tien Tzuo coined the term \u201csubscription economy\u201d in 2007, he envisioned a future where consumers would prioritize access over ownership.\nAs the CEO of subscription management platform Zuora, Tzuo has been at the forefront of this economic shift for nearly two decades. Today, as the subscription model reaches maturity, companies are grappling with evolving consumer expectations, the specter of subscription fatigue, and the need for more sophisticated monetization strategies.\nThe key to success in the subscription economy, according to Tzuo, is creating an \u201cessential\u201d relationship with the customer. \u201cDon\u2019t focus on the sale, focus on the ongoing relationship,\u201d he told PYMNTS CEO Karen Webster. \u201cEarn the right to establish an ongoing relationship slowly over time.\u201d\nThis shift in mindset requires companies to think beyond traditional transactional models. Tzuo pointed to the example of a coffee subscription service that\u2019s exploring ways to better understand customer habits.\n\u201cThey\u2019re asking questions like, \u2018Do we sell you a coffee maker? Do we sell you a grinder?\u2019\u201d he said. \u201cAre there other things that we can do to help understand what your coffee habits are and deliver you actually what you need where you don\u2019t have to think about it anymore?\u201d\nBy focusing on the broader need \u2014 in this case, fresh ground coffee every morning \u2014 companies can create a more valuable and sticky relationship with their customers. This approach also opens up opportunities for expanded services and revenue streams.\nLimits of \u2018Everything as a Service\u2019\nWhile Tzuo believes that \u201canything could be a service,\u201d he acknowledged that there are challenges in making certain products and industries subscription-friendly. The key is understanding the underlying need that the product or service fulfills.\nTzuo cited examples of heavy equipment manufacturers like Caterpillar and John Deere embracing subscription models. \u201cAre you really interested in the excavator? Or are you just trying to move some dirt?\u201d he asked. By reframing the value proposition, these companies can offer more flexible, service-oriented solutions.\nEven seemingly unlikely candidates for subscription, like flooring, are being reimagined. Tzuo mentioned a company developing a \u201csmart floor\u201d that could measure foot traffic for retail or public spaces. \u201cThese are companies that are really saying, \u2018Look, just pay us a subscription fee and we\u2019ll make sure that the carpets are always clean and good,\u2019\u201d\u00a0he said.\nHowever, the challenge lies in finding a large enough market to make these niche services sustainable. As Tzuo noted, \u201cThere\u2019s a riddle of there being a big enough market to make a service sustainable.\u201d\nRegulation and Industry Standards\nAs the subscription economy matures, calls for increased regulation have grown louder. The Federal Trade Commission (FTC) has expressed interest in further regulating the space, particularly around issues of transparency and ease of cancellation.\nTzuo sees potential benefits in some regulation, particularly in establishing trust and reducing friction for consumers. \u201cAnything that helps take friction out of the system or prevents a few bad apples from ruining everybody\u2019s experiences … the more trust, the less friction, the better off we are,\u201d he said.\nHowever, Tzuo believes the industry could potentially self-regulate, pointing to examples like the PCI standards in the credit card industry. \u201cIf the industry does not want the government to do it, the industry should absolutely regulate it,\u201d he said. \u201cThe more standards bodies, the more people come together and seal of approvals, those are always good.\u201d\nThe lack of industrywide standards may be partly due to the relative newness of the subscription economy. \u201cWhen we started, Spotify didn\u2019t exist. Uber didn\u2019t exist. Netflix was not a streaming service,\u201d Tzuo said. \u201cA lot of these things are relatively new. Peloton is relatively new as well. So I think the time has come.\u201d\nLooking Ahead: Future of Subscriptions\nAs the subscription economy approaches its third decade, Tzuo remains bullish on its prospects. He dismisses concerns about \u201csubscription fatigue,\u201d instead seeing a market that\u2019s becoming more sophisticated and competitive.\n\u201cWhat we\u2019re seeing certainly is there\u2019s been a wave of companies that were able to take advantage of this business model, but now competition is higher,\u201d Tzuo said. \u201cConsumer expectations are greater. And so I think you\u2019re gonna see the sophistication level go much higher.\u201d\nTzuo predicted that successful companies will focus on giving customers more choice and flexibility. \u201cThis is about letting them manage their own lives and manage their own needs and manage their own subscriptions,\u201d he said. This may lead to a pendulum swing between bundled and unbundled offerings, as companies strive to meet diverse customer preferences.\nThe integration of artificial intelligence (AI) is also poised to play a big role in the evolution of subscription services. Tzuo sees AI driving more sophisticated pricing and engagement strategies, particularly in areas like metered usage and consumption-based models.\nAs the subscription economy continues to mature, the companies that can strike the right balance between choice and simplicity are likely to come out on top. \u201cIf I\u2019m a consumer and I have a choice, do I want to buy and spend a lot of money on a physical product and deal with obsolescence, deal with ownership, or would I rather simply pay a fee that I can dial up when I need, dial down when I need, and give myself more flexibility?\u201d Tzuo asked. \u201cOf course, I\u2019m going to opt for the latter.\u201d\nFor Tzuo and the subscription economy he helped define, the journey from disruptive idea to economic mainstay is nearly complete. The next challenge will be navigating the complex landscape of consumer expectations, regulatory scrutiny, and technological innovation. As the subscription model enters its next phase, the companies that can deliver both value and flexibility are poised to thrive in this new economic paradigm.\nThe post Zuora CEO Warns of ‘Subscription Sophistication’ Gap as Market Matures appeared first on PYMNTS.com.", "date_published": "2024-09-18T04:00:49-04:00", "date_modified": "2024-09-17T22:50:52-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/09/Zuoro-subscriptions.jpg", "tags": [ "AI", "artificial intelligence", "everything as a service", "Main Feature", "News", "PYMNTS News", "pymnts tv", "Subscription Commerce", "subscription economy", "subscription regulation", "subscriptions", "Tien Tzuo", "video", "Zuora" ] }, { "id": "https://www.pymnts.com/?p=2019502", "url": "https://www.pymnts.com/subscription-commerce/2024/a-day-in-the-life-of-gen-z-shopping-subscriptions-and-social-media/", "title": "A Day in the Life of Gen Z: Shopping, Subscriptions and Social Media", "content_html": "Merchants have much to gain if they find the way to the hearts of Gen Z consumers \u2014 and can get them to click on the buy button, in store or online. Better yet, as Kirk Stuart, SVP, head of North America Merchant, Acquiring and Enablement at Visa, and Natalie Youn, founder and president of DoggieLawn, told Karen Webster in the latest PYMNTS SMBTV installment, incentivizing them to sign up for recurring subscriptions can keep those consumers happy and loyal for years to come.
\nThe opportunity is a sizable one, as 20% of the U.S. population is between the ages of 12 and 27. Gen Z is the cohort that everyone from retailers to real estate brokers wants as a customer. They\u2019re digitally native \u2014 26% more of the consumers in this cohort use apps to make retail purchases, PYMNTS Intelligence data shows.
\nStuart knows whereof he speaks \u2014 he\u2019s the father of 22-year-old triplets, newly out of college and just starting their professional careers. There\u2019s no cookie-cutter approach to capturing their attention and carving out share of wallet, he cautioned. And from his vantage point, \u201cIn many ways, this generation is extremely different \u2014 certainly from my generation, but they are also very different than millennials.\u201d
\nFor starters, they are the only generation that grew up with digital-first technology basically from birth, where social media (found by PYMNTS Intelligence to be highly important to two-thirds of Gen Z individuals) and other online channels help inform their worldview \u2014 and how and where they shop. Stuart noted that in one recent transaction, his daughter chose a back massager through TikTok and is also looking for social media recommendations to help furnish her new apartment.
\nThere\u2019s a flexibility, too, in how merchants must approach Gen Z consumers, said Stuart, who noted that, according to \u201cVisa Insights Engine: 2024 Predictions,\u201d 83% of shoppers still go to in-store settings during their commerce journeys. Research commissioned from Visa\u00a0Acceptance Solutions and conducted through PYMNTS Intelligence has found that the \u201cClick and Mortar\u201d shopper has come back to malls and merchants, even if the actual transaction might happen on the device. Merchants must be agnostic as to where the sale happens, with a seamless continuum between the store and the website.
As to the seamless experience, he said, \u201cthere are lots of ways in which payments play into that.\u201d He noted that with transactions made through Visa, the payment network\u2019s Authorize.net service, or through digital wallets or buy now, pay later (BNPL) options, the goal is to meet these younger consumers where they are. With tap to pay, in addition, he said, \u201cwe\u2019ve been able to take everybody\u2019s mobile device and turn it into a payments terminal,\u201d with 6.7 million active terminals, as of Visa March 2024 data.\u00a0
\nThose young consumers\u2019 tendencies to go online to shop, to get recommendations and, especially, to set up subscriptions, have proven to be a boon for DoggieLawn, a firm catering to pet owners through a strategy that incorporates all of those elements. The company sells indoor grass pads it calls an \u201cenvironmentally friendly way\u201d for dogs to do their business, without the odors or chemicals of artificial turf.\u00a0
\nYoun launched the company as a way to quit the corporate workaday. She said the principle behind the organic natural pee pad is simple.
\n\u201cWe ship out grass all over the nation to people who have dogs and who don\u2019t have access to a backyard \u2014 and they need a solution,\u201d she said. Having the DoggieLawn on a balcony or even indoors, she said, also is a natural extension of the daily walk, where our canine pals are already used to \u201cgoing\u201d outside on the grass.
\nThe model is subscription-based, complete with free shipping and loyalty points.
\nYounger consumers, particularly Gen Z and millennials combined, represent a significant portion of DoggieLawn\u2019s clientele \u2014 and its targeted audience.
\nThink, then, of the young adults who have flown the proverbial nest and now are starting off on their own, living in apartments in or out of school.
\n\u201cYou\u2019ll have a lot of college students who are still Gen Z, but we expect that as they start to become professionals, they will have more discretionary income,\u201d Youn said, \u201cand they will become a larger segment of our customer base.\u201d
\nThough DoggieLawn\u2019s \u201cprimary channel\u201d is its own site, the company also looks at where millennials and Gen Z consumers are shopping and where they are spending their time \u2014 not surprisingly, that\u2019s Amazon, TikTok and Chewy.
\n\u201cWe try to be in different places where we know that there\u2019s going to be clusters of people looking to purchase pet products,\u201d Youn said. With that data on hand, the company can tailor its approach to the consumer. The main site promotes subscriptions; on the eCommerce sites, she said, the move is to try to introduce DoggieLawn and incentivize an initial purchase. The company also has videos and testimonials on social media channels embedded into its email communications with prospective customers, illustrating the cross-pollination of these points of engagement.
\nNearly 40% of Gen Z consumers have subscriptions, which Youn said makes them a natural fit for DoggieLawn, as the pads eventually become \u201cessential\u201d to everyday pet ownership, and to setting a routine for the dog.\u00a0\u00a0
\nWith a nod to the final piece of the puzzle, the transactions, Stuart noted, \u201cWhen it comes to the payment side of working with these Gen Z consumers, there is a lot of work that has to be done in terms of marketing to these folks, retaining them and growing your business.\u201d
\nStuart said the subscription model sports the least friction-filled option in commerce, due to recurring billing, and the ability to keep cards on file \u2014 while tokenizing those credentials, too, making those transactions safer and preventing failures when credentials or addresses have changed. Reordering is made easy, while firms control their costs through direct sales and streamlining returns.
\nFor Visa, \u201cWe don\u2019t make companies like Natalie\u2019s have to hold on to that consumer information, and have challenges with data security.\u201d
\nAs Stuart said, \u201cPayments, in many ways, should be the very last thing you should have to think about.\u201d
\nThe post A Day in the Life of Gen Z: Shopping, Subscriptions and Social Media appeared first on PYMNTS.com.
\n", "content_text": "Merchants have much to gain if they find the way to the hearts of Gen Z consumers \u2014 and can get them to click on the buy button, in store or online. Better yet, as Kirk Stuart, SVP, head of North America Merchant, Acquiring and Enablement at Visa, and Natalie Youn, founder and president of DoggieLawn, told Karen Webster in the latest PYMNTS SMBTV installment, incentivizing them to sign up for recurring subscriptions can keep those consumers happy and loyal for years to come.\nThe opportunity is a sizable one, as 20% of the U.S. population is between the ages of 12 and 27. Gen Z is the cohort that everyone from retailers to real estate brokers wants as a customer. They\u2019re digitally native \u2014 26% more of the consumers in this cohort use apps to make retail purchases, PYMNTS Intelligence data shows.\nStuart knows whereof he speaks \u2014 he\u2019s the father of 22-year-old triplets, newly out of college and just starting their professional careers. There\u2019s no cookie-cutter approach to capturing their attention and carving out share of wallet, he cautioned. And from his vantage point, \u201cIn many ways, this generation is extremely different \u2014 certainly from my generation, but they are also very different than millennials.\u201d \nFor starters, they are the only generation that grew up with digital-first technology basically from birth, where social media (found by PYMNTS Intelligence to be highly important to two-thirds of Gen Z individuals) and other online channels help inform their worldview \u2014 and how and where they shop. Stuart noted that in one recent transaction, his daughter chose a back massager through TikTok and is also looking for social media recommendations to help furnish her new apartment.\nThere\u2019s a flexibility, too, in how merchants must approach Gen Z consumers, said Stuart, who noted that, according to \u201cVisa Insights Engine: 2024 Predictions,\u201d 83% of shoppers still go to in-store settings during their commerce journeys. Research commissioned from Visa\u00a0Acceptance Solutions and conducted through PYMNTS Intelligence has found that the \u201cClick and Mortar\u201d shopper has come back to malls and merchants, even if the actual transaction might happen on the device. Merchants must be agnostic as to where the sale happens, with a seamless continuum between the store and the website. \nAs to the seamless experience, he said, \u201cthere are lots of ways in which payments play into that.\u201d He noted that with transactions made through Visa, the payment network\u2019s Authorize.net service, or through digital wallets or buy now, pay later (BNPL) options, the goal is to meet these younger consumers where they are. With tap to pay, in addition, he said, \u201cwe\u2019ve been able to take everybody\u2019s mobile device and turn it into a payments terminal,\u201d with 6.7 million active terminals, as of Visa March 2024 data.\u00a0 \nDoggieLawn: When They\u2019ve Got to Go, They\u2019ve Got to Go\nThose young consumers\u2019 tendencies to go online to shop, to get recommendations and, especially, to set up subscriptions, have proven to be a boon for DoggieLawn, a firm catering to pet owners through a strategy that incorporates all of those elements. The company sells indoor grass pads it calls an \u201cenvironmentally friendly way\u201d for dogs to do their business, without the odors or chemicals of artificial turf.\u00a0 \nYoun launched the company as a way to quit the corporate workaday. She said the principle behind the organic natural pee pad is simple.\n\u201cWe ship out grass all over the nation to people who have dogs and who don\u2019t have access to a backyard \u2014 and they need a solution,\u201d she said. Having the DoggieLawn on a balcony or even indoors, she said, also is a natural extension of the daily walk, where our canine pals are already used to \u201cgoing\u201d outside on the grass.\nThe model is subscription-based, complete with free shipping and loyalty points.\nYounger consumers, particularly Gen Z and millennials combined, represent a significant portion of DoggieLawn\u2019s clientele \u2014 and its targeted audience.\nThink, then, of the young adults who have flown the proverbial nest and now are starting off on their own, living in apartments in or out of school.\n\u201cYou\u2019ll have a lot of college students who are still Gen Z, but we expect that as they start to become professionals, they will have more discretionary income,\u201d Youn said, \u201cand they will become a larger segment of our customer base.\u201d\nThough DoggieLawn\u2019s \u201cprimary channel\u201d is its own site, the company also looks at where millennials and Gen Z consumers are shopping and where they are spending their time \u2014 not surprisingly, that\u2019s Amazon, TikTok and Chewy. \n\u201cWe try to be in different places where we know that there\u2019s going to be clusters of people looking to purchase pet products,\u201d Youn said. With that data on hand, the company can tailor its approach to the consumer. The main site promotes subscriptions; on the eCommerce sites, she said, the move is to try to introduce DoggieLawn and incentivize an initial purchase. The company also has videos and testimonials on social media channels embedded into its email communications with prospective customers, illustrating the cross-pollination of these points of engagement.\nAppeal of Subscriptions\nNearly 40% of Gen Z consumers have subscriptions, which Youn said makes them a natural fit for DoggieLawn, as the pads eventually become \u201cessential\u201d to everyday pet ownership, and to setting a routine for the dog.\u00a0\u00a0 \nWith a nod to the final piece of the puzzle, the transactions, Stuart noted, \u201cWhen it comes to the payment side of working with these Gen Z consumers, there is a lot of work that has to be done in terms of marketing to these folks, retaining them and growing your business.\u201d\nStuart said the subscription model sports the least friction-filled option in commerce, due to recurring billing, and the ability to keep cards on file \u2014 while tokenizing those credentials, too, making those transactions safer and preventing failures when credentials or addresses have changed. Reordering is made easy, while firms control their costs through direct sales and streamlining returns. \nFor Visa, \u201cWe don\u2019t make companies like Natalie\u2019s have to hold on to that consumer information, and have challenges with data security.\u201d \nAs Stuart said, \u201cPayments, in many ways, should be the very last thing you should have to think about.\u201d\nThe post A Day in the Life of Gen Z: Shopping, Subscriptions and Social Media appeared first on PYMNTS.com.", "date_published": "2024-07-31T04:00:28-04:00", "date_modified": "2024-07-30T21:52:42-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/Visa-DoggieLawn.jpg", "tags": [ "Click-and-Mortar\u2122", "DoggieLawn", "Kirk Stuart", "Main Feature", "Natalie Youn", "News", "Payment Methods", "payments innovation", "PYMNTS Intelligence", "PYMNTS News", "pymnts tv", "social commerce", "Subscription Commerce", "subscriptions", "video", "Visa", "VISA SMBTV" ] }, { "id": "https://www.pymnts.com/?p=1971140", "url": "https://www.pymnts.com/subscription-commerce/2024/walmart-subscribers-break-the-30-mark/", "title": "Walmart+ Subscribers Break the 30% Mark", "content_html": "As Walmart and Amazon leverage their paid membership programs to drive loyalty, the former is seeing millennials prove to be the most eager to subscribe.
\n\u201cWalmart+ Week 2024,\u201d a new PYMNTS Intelligence report, digs into consumer trends regarding subscriptions and purchases during Walmart+ Week, drawing on a survey of more that 7,700 respondents in late June.
\nThe study revealed that, overall, roughly 30% of consumers subscribe to or have access to a Walmart+ account, and among those subscribers, the vast majority \u2014 87% \u2014 also have an Amazon Prime account.
\n![\"retail](\"https://www.pymnts.com/wp-content/uploads/2024/07/retail-subscriptions-Amazon-Walmart.png\")
That share rises by more than 50% when looking specifically at millennials, of whom 47% hold or have access to a Walmart+ account, and 90% of those also have access to a Prime Membership.
\nIn contrast, baby boomers and seniors are the least likely to hold paid Walmart+ subscriptions, with only 15% of those in this age bracket doing so. Yet that is not to say that these older consumers are strangers to retail subscriptions. The majority \u2014 six in 10 \u2014 of them hold at least one Amazon Prime or Walmart+ subscription.
\n\u201cWalmart+ continued to grow double digits as members engage with us more frequently and spend more than other customers,\u201d Walmart CFO John David Rainey told analysts on the retail giant\u2019s most recent earnings call in May.
\nCEO of Walmart U.S. John Furner added that the program \u201cis an important part of what we do,\u201d and improving fulfillment has been key to growing the program.
\nAmazon, meanwhile, is seeing its Prime membership prove a key priority internationally, a make-or-break factor for success as it continues its global expansion.
\n\u201cWe\u2019ve launched 10 new countries in the last seven years. Each of those has its own particular trajectory on profitability. The first thing we see there is having a good customer experience, having people sign up for Prime,\u201d CFO Brian Olsavsky told analysts in April. \u201c … Then work on our cost structure as we get scale, ad advertising and other things. And eventually, what we see is a break-even countries breakeven, and then they make \u2026 [a] positive contribution to the international segment.\u201d
\nThe post Walmart+ Subscribers Break the 30% Mark appeared first on PYMNTS.com.
\n", "content_text": "As Walmart and Amazon leverage their paid membership programs to drive loyalty, the former is seeing millennials prove to be the most eager to subscribe.\nBy the Numbers\n\u201cWalmart+ Week 2024,\u201d a new PYMNTS Intelligence report, digs into consumer trends regarding subscriptions and purchases during Walmart+ Week, drawing on a survey of more that 7,700 respondents in late June.\nThe study revealed that, overall, roughly 30% of consumers subscribe to or have access to a Walmart+ account, and among those subscribers, the vast majority \u2014 87% \u2014 also have an Amazon Prime account.\n\nThat share rises by more than 50% when looking specifically at millennials, of whom 47% hold or have access to a Walmart+ account, and 90% of those also have access to a Prime Membership.\nIn contrast, baby boomers and seniors are the least likely to hold paid Walmart+ subscriptions, with only 15% of those in this age bracket doing so. Yet that is not to say that these older consumers are strangers to retail subscriptions. The majority \u2014 six in 10 \u2014 of them hold at least one Amazon Prime or Walmart+ subscription.\nThe Data in Context\n\u201cWalmart+ continued to grow double digits as members engage with us more frequently and spend more than other customers,\u201d Walmart CFO John David Rainey told analysts on the retail giant\u2019s most recent earnings call in May.\nCEO of Walmart U.S. John Furner added that the program \u201cis an important part of what we do,\u201d and improving fulfillment has been key to growing the program.\nAmazon, meanwhile, is seeing its Prime membership prove a key priority internationally, a make-or-break factor for success as it continues its global expansion.\n\u201cWe\u2019ve launched 10 new countries in the last seven years. Each of those has its own particular trajectory on profitability. The first thing we see there is having a good customer experience, having people sign up for Prime,\u201d CFO Brian Olsavsky told analysts in April. \u201c … Then work on our cost structure as we get scale, ad advertising and other things. And eventually, what we see is a break-even countries breakeven, and then they make \u2026 [a] positive contribution to the international segment.\u201d\nThe post Walmart+ Subscribers Break the 30% Mark appeared first on PYMNTS.com.", "date_published": "2024-07-03T15:14:24-04:00", "date_modified": "2024-07-03T22:29:34-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/02/Walmart-eCommerce.jpg", "tags": [ "Amazon", "Amazon Prime", "Featured News", "News", "PYMNTS Intelligence", "PYMNTS News", "Retail", "Subscription Commerce", "subscriptions", "walmart" ] }, { "id": "https://www.pymnts.com/?p=1967571", "url": "https://www.pymnts.com/subscription-commerce/2024/flexpay-and-spreedly-team-to-recover-failed-subscription-payments/", "title": "FlexPay and Spreedly Team to Recover Failed Subscription Payments", "content_html": "Open payments platform Spreedly has expanded its partnership with payments company FlexPay.
\nThe new collaboration, announced Wednesday (June 26), is designed to recover failed transactions and eliminate involuntary churn for subscription customers.
\nWith this expansion, FlexPay will offer Spreedly customers its Advanced Vault, a solution designed to increase transaction success rates, reduce the overall cost of managing payment vaults, and improve the end customers\u2019 experience.
\n\u201cWe work closely with our subscription customers to employ new financial metrics better to connect the results of retention initiatives to profitability,\u201d said Charles Weiss, vice president of engineering at FlexPay. \u201cPart of that story is the long-standing relationship with Spreedly that drives more value for our customers by taking away much of the integration complexity found in most payment stacks.\u201d
\nDaniel Scagnelli, Spreedly\u2019s senior vice president of client services, added: \u201cPartnering with other innovative payments technology providers like FlexPay further increases the value we can bring to merchants globally. There is powerful alignment in our vision to unlock choice among PSPs, fraud tools, and other innovative payment services to improve customer experience, lower churn, and improve lifetime value.\u201d
\nAs PYMNTS reporting and research has shown, failed payments are a continual challenge for merchants. For example, \u201cFraud Management, False Declines and Improved Profitability,\u201d a PYMNTS Intelligence and Nuvei collaboration, found that 11% of transactions processed by the average eCommerce firm failed in the past year.
\nHowever, \u201cfew merchants have a clear understanding of the underlying causes,\u201d PYMNTS wrote earlier this year. \u201cIn fact, over 80% cite difficulty in pinpointing the causes of failed payments as a major challenge, with nearly 64% ranking it as their top challenge.\u201d
\nMeanwhile, PYMNTS spoke late last month with Peter Doughterty, Spreedly\u2019s president, who said a steady diet of data and a willingness to shift when necessary will be the keys to success amid a shift in consumer spending patterns.
\n\u201cAs a savvy business operator, flexibility to make pivots is super important to run a great business,\u201d Dougherty said. \u201cHaving access to data to make those decisions, but also having the flexibility to pivot and bring new products to market is key.\u201d
\nThe post FlexPay and Spreedly Team to Recover Failed Subscription Payments appeared first on PYMNTS.com.
\n", "content_text": "Open payments platform Spreedly has expanded its partnership with payments company FlexPay.\nThe new collaboration, announced Wednesday (June 26), is designed to recover failed transactions and eliminate involuntary churn for subscription customers.\nWith this expansion, FlexPay will offer Spreedly customers its Advanced Vault, a solution designed to increase transaction success rates, reduce the overall cost of managing payment vaults, and improve the end customers\u2019 experience.\n\u201cWe work closely with our subscription customers to employ new financial metrics better to connect the results of retention initiatives to profitability,\u201d said Charles Weiss, vice president of engineering at FlexPay. \u201cPart of that story is the long-standing relationship with Spreedly that drives more value for our customers by taking away much of the integration complexity found in most payment stacks.\u201d\nDaniel Scagnelli, Spreedly\u2019s senior vice president of client services, added: \u201cPartnering with other innovative payments technology providers like FlexPay further increases the value we can bring to merchants globally. There is powerful alignment in our vision to unlock choice among PSPs, fraud tools, and other innovative payment services to improve customer experience, lower churn, and improve lifetime value.\u201d\nAs PYMNTS reporting and research has shown, failed payments are a continual challenge for merchants. For example, \u201cFraud Management, False Declines and Improved Profitability,\u201d a PYMNTS Intelligence and Nuvei collaboration, found that 11% of transactions processed by the average eCommerce firm failed in the past year.\nHowever, \u201cfew merchants have a clear understanding of the underlying causes,\u201d PYMNTS wrote earlier this year. \u201cIn fact, over 80% cite difficulty in pinpointing the causes of failed payments as a major challenge, with nearly 64% ranking it as their top challenge.\u201d\nMeanwhile, PYMNTS spoke late last month with Peter Doughterty, Spreedly\u2019s president, who said a steady diet of data and a willingness to shift when necessary will be the keys to success amid a shift in consumer spending patterns.\n\u201cAs a savvy business operator, flexibility to make pivots is super important to run a great business,\u201d Dougherty said. \u201cHaving access to data to make those decisions, but also having the flexibility to pivot and bring new products to market is key.\u201d\nThe post FlexPay and Spreedly Team to Recover Failed Subscription Payments appeared first on PYMNTS.com.", "date_published": "2024-06-26T15:38:18-04:00", "date_modified": "2024-06-26T15:38:18-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/06/Spreedly-FlexPay-subscription-commerce.jpg", "tags": [ "Failed Payments", "FlexPay", "News", "partnerships", "PYMNTS News", "Spreedly", "Subscription Churn", "Subscription Commerce", "subscription payments", "subscriptions", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=1958148", "url": "https://www.pymnts.com/subscription-commerce/2024/spotify-reportedly-planning-higher-priced-premium-subscription/", "title": "Spotify Reportedly Planning Higher-Priced Premium Subscription", "content_html": "Spotify is reportedly readying a new and higher-priced premium plan for its most devoted users.
\nThe new plan, set to be unveiled later this year, will charge users at least $5 per month more, Bloomberg News reported Tuesday (June 11), citing a source familiar with the matter.
\nThat source said this updated plan would offer access to better audio, as well as new tools for managing song libraries and building playlists.
\nAccording to the report, Spotify is set to position the new offering as an add-on for existing customers. It lets most users remain on their current Spotify plans, but customers who opt to upgrade will generate additional revenue for the company and its partners.
\nBloomberg\u2019s source said the new offering\u2019s pricing will depend on each user\u2019s base plan but will average out to about a 40% increase.
\nPYMNTS has contacted Spotify for comment but has not yet gotten a reply.
\nThe news comes a little more than a week after Spotify said it was increasing prices for its premium plans in the U.S. to let it invest in product features.
\nStarting immediately for new subscribers and next month for existing subscribers, the new prices for the plans are $11.99 for Individual (up from $10.99), $16.99 for Duo (up from $14.99), $19.99 for Family (up from $16.99).
\n\u201cSo that we can continue to invest in and innovate on our product features and bring users the best experience, we occasionally update our prices,\u201d Spotify said on its blog.
\nThis announcement came about six weeks after Spotify said on an earnings call that this will be a \u201cyear of monetization\u201d after seeing gains in revenue growth, margin expansion and efficiency.
\nAlso on the call, Spotify CEO Daniel Ek stressed the platform\u2019s value enhancements and consumer satisfaction as rationale for the \u2014 then still rumored \u2014 price increases.
\n\u201c[\u2026] We think consumers like what they\u2019re seeing from Spotify,\u201d Ek said on the call. \u201cThey love the offering, and they feel that the value that they\u2019re getting is more than fair.\u201d
\nBut in spite of consumers\u2019 embrace of streaming, \u201cthe competitive pricing approach is not without risks,\u201d PYMNTS wrote last month.
\nData from PYMNTS Intelligence\u2019s report, \u201cThe One-Stop Bill Pay Playbook: Drivers of Consumers\u2019 Bill Payment Priorities\u201d shows that streaming subscriptions are often the first things to go when consumers face financial constraints.
\n\u201cSpecifically, more than half of respondents indicated they would cancel streaming subscriptions to reduce monthly bills, surpassing any other service,\u201d PYMNTS wrote. \u201cOnly 17% expressed a preference for paying streaming bills over other expenses.\u201d
\nThe post Spotify Reportedly Planning Higher-Priced Premium Subscription appeared first on PYMNTS.com.
\n", "content_text": "Spotify is reportedly readying a new and higher-priced premium plan for its most devoted users.\nThe new plan, set to be unveiled later this year, will charge users at least $5 per month more, Bloomberg News reported Tuesday (June 11), citing a source familiar with the matter.\nThat source said this updated plan would offer access to better audio, as well as new tools for managing song libraries and building playlists.\nAccording to the report, Spotify is set to position the new offering as an add-on for existing customers. It lets most users remain on their current Spotify plans, but customers who opt to upgrade will generate additional revenue for the company and its partners.\nBloomberg\u2019s source said the new offering\u2019s pricing will depend on each user\u2019s base plan but will average out to about a 40% increase.\nPYMNTS has contacted Spotify for comment but has not yet gotten a reply.\nThe news comes a little more than a week after Spotify said it was increasing prices for its premium plans in the U.S. to let it invest in product features.\nStarting immediately for new subscribers and next month for existing subscribers, the new prices for the plans are $11.99 for Individual (up from $10.99), $16.99 for Duo (up from $14.99), $19.99 for Family (up from $16.99).\n\u201cSo that we can continue to invest in and innovate on our product features and bring users the best experience, we occasionally update our prices,\u201d Spotify said on its blog.\nThis announcement came about six weeks after Spotify said on an earnings call that this will be a \u201cyear of monetization\u201d after seeing gains in revenue growth, margin expansion and efficiency.\nAlso on the call, Spotify CEO Daniel Ek stressed the platform\u2019s value enhancements and consumer satisfaction as rationale for the \u2014 then still rumored \u2014 price increases.\n\u201c[\u2026] We think consumers like what they\u2019re seeing from Spotify,\u201d Ek said on the call. \u201cThey love the offering, and they feel that the value that they\u2019re getting is more than fair.\u201d\nBut in spite of consumers\u2019 embrace of streaming, \u201cthe competitive pricing approach is not without risks,\u201d PYMNTS wrote last month.\nData from PYMNTS Intelligence\u2019s report, \u201cThe One-Stop Bill Pay Playbook: Drivers of Consumers\u2019 Bill Payment Priorities\u201d shows that streaming subscriptions are often the first things to go when consumers face financial constraints.\n\u201cSpecifically, more than half of respondents indicated they would cancel streaming subscriptions to reduce monthly bills, surpassing any other service,\u201d PYMNTS wrote. \u201cOnly 17% expressed a preference for paying streaming bills over other expenses.\u201d\nThe post Spotify Reportedly Planning Higher-Priced Premium Subscription appeared first on PYMNTS.com.", "date_published": "2024-06-11T11:25:48-04:00", "date_modified": "2024-06-11T11:25:48-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/11/Spotify.jpg", "tags": [ "entertainment", "music streaming", "News", "PYMNTS News", "Spotify", "spotify premium", "Streaming", "streaming audio", "Subscription Commerce", "subscriptions", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=1946899", "url": "https://www.pymnts.com/subscription-commerce/2024/atomic-launches-subscription-management-tech-for-banking-apps/", "title": "Atomic Launches Subscription Management Tech for Banking Apps", "content_html": "Atomic\u00a0has launched a subscription management technology that\u00a0can be added\u00a0to banking apps.
\nWith the addition of\u00a0PayLink Manage, financial institutions can enable their account holders to view and make real-time changes to all their recurring payments \u2014 all within their banking app, the company said in a Tuesday (May 21)\u00a0press release.
\n\u201cWe\u2019re confident that within a few\u00a0years\u00a0subscription management will become a must-have feature in any leading consumer banking application,\u201d\u00a0Jordan Wright, co-founder and CEO\u00a0of Atomic, said in the release.
\nAtomic\u2019s technology provides a unified experience where users can view all their recurring payments, including subscriptions and bills for things like streaming services, phone and internet plans, auto insurance, rent\u00a0and\u00a0mortgage payments, according to the release.
\nIts direct connectivity provides users with\u00a0access to insights into usage data, plan details, itemized receipts\u00a0and\u00a0other subscription information, the release said.
\nIn addition to viewing their recurring payments, users can take real-time actions on them, helping them find ways to save money, per the release.
\nThe new PayLink Manage leverages Atomic\u2019s technology used in other solutions that connect consumer data to financial solutions by allowing access to payroll, human resources information systems (HRIS) and merchant systems, according to the release.
\n\u201cWith this launch, we are extending our trusted, robust connectivity framework to subscription management, providing financial institutions with a tool to enhance customer engagement and improve retention by helping people take action to improve their financial outcomes,\u201d\u00a0Andrea Martone, chief product officer at Atomic, said in the release.
\nIn another recent entry into this space,\u00a0Visa said in April that it launched a subscription manager service that financial institutions\u00a0can provide to Visa cardholders.
\nVisa\u2019s service provides a single place where consumers can see where their card details are stored, view recurring payments attributed to their card\u00a0and\u00a0stop recurring payments.
\nIn March, Mastercard said\u00a0that it\u00a0is piloting a\u00a0subscription management\u00a0solution that financial institutions can add to their consumer banking offerings.
\nMastercard\u2019s Smart Subscriptions solution enables consumers to cancel, pause\u00a0and\u00a0resume their subscriptions; analyze and categorize their spending; see upcoming bills; and receive personalized offers from merchants.
\nSmart Subscriptions is being piloted in the United States and\u00a0is expected\u00a0to be launched in other markets later this year.
\nThe post Atomic Launches Subscription Management Tech for Banking Apps appeared first on PYMNTS.com.
\n", "content_text": "Atomic\u00a0has launched a subscription management technology that\u00a0can be added\u00a0to banking apps.\nWith the addition of\u00a0PayLink Manage, financial institutions can enable their account holders to view and make real-time changes to all their recurring payments \u2014 all within their banking app, the company said in a Tuesday (May 21)\u00a0press release.\n\u201cWe\u2019re confident that within a few\u00a0years\u00a0subscription management will become a must-have feature in any leading consumer banking application,\u201d\u00a0Jordan Wright, co-founder and CEO\u00a0of Atomic, said in the release.\nAtomic\u2019s technology provides a unified experience where users can view all their recurring payments, including subscriptions and bills for things like streaming services, phone and internet plans, auto insurance, rent\u00a0and\u00a0mortgage payments, according to the release.\nIts direct connectivity provides users with\u00a0access to insights into usage data, plan details, itemized receipts\u00a0and\u00a0other subscription information, the release said.\nIn addition to viewing their recurring payments, users can take real-time actions on them, helping them find ways to save money, per the release.\nThe new PayLink Manage leverages Atomic\u2019s technology used in other solutions that connect consumer data to financial solutions by allowing access to payroll, human resources information systems (HRIS) and merchant systems, according to the release.\n\u201cWith this launch, we are extending our trusted, robust connectivity framework to subscription management, providing financial institutions with a tool to enhance customer engagement and improve retention by helping people take action to improve their financial outcomes,\u201d\u00a0Andrea Martone, chief product officer at Atomic, said in the release.\nIn another recent entry into this space,\u00a0Visa said in April that it launched a subscription manager service that financial institutions\u00a0can provide to Visa cardholders.\nVisa\u2019s service provides a single place where consumers can see where their card details are stored, view recurring payments attributed to their card\u00a0and\u00a0stop recurring payments.\nIn March, Mastercard said\u00a0that it\u00a0is piloting a\u00a0subscription management\u00a0solution that financial institutions can add to their consumer banking offerings.\nMastercard\u2019s Smart Subscriptions solution enables consumers to cancel, pause\u00a0and\u00a0resume their subscriptions; analyze and categorize their spending; see upcoming bills; and receive personalized offers from merchants.\nSmart Subscriptions is being piloted in the United States and\u00a0is expected\u00a0to be launched in other markets later this year.\nThe post Atomic Launches Subscription Management Tech for Banking Apps appeared first on PYMNTS.com.", "date_published": "2024-05-21T12:32:32-04:00", "date_modified": "2024-05-21T12:32:32-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/05/subscription-commerce-payments-mobile-banking.jpg", "tags": [ "Atomic", "banking", "banking apps", "Digital Banking", "financial institutions", "mobile apps", "News", "PYMNTS News", "Subscription Commerce", "Subscription Management", "subscriptions", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=1942167", "url": "https://www.pymnts.com/subscription-commerce/2024/duolingo-credits-generative-ai-for-54percent-leap-in-paid-subscribers/", "title": "Duolingo Credits GenAI\u00a0for 54% Leap in Paid Subscribers", "content_html": "Duolingo\u00a0reportedly credits generative artificial intelligence (AI)-powered\u00a0features for the 54% leap in paid subscribers it recorded in the first quarter.
\n\u201cWhat we\u2019re\u00a0seeing is that people are willing to pay even more to learn a language through generative AI,\u201d\u00a0Matt Skaruppa, chief financial officer at Duolingo, told the Wall Street Journal (WSJ) in an\u00a0interview\u00a0posted Friday (May 10).
\nDuolingo, which offers a language-learning app, also reported a 45% increase in revenue during a quarter in which other online learning companies reported declines in sales, according to the report.
\nThe company\u2019s Duolingo Max is a premium subscription tier\u00a0that offers AI-generated feedback and conversations in various languages.
\nDuolingo aims to use generative AI to create a \u201chuman-like tutor experience,\u201d the WSJ report said. It currently offers Duolingo Max, which is powered by OpenAI GPT-4 technology, in six countries for those learning Spanish and French, but it plans to add more languages.
\nSkaruppa told the WSJ that GenAI helps keep users engaged and helps build word of mouth, which is how Duolingo gets most of its new customers, per the report.
\nDuolingo has also found that GenAI has enabled it to accelerate its production of content. On some projects, the technology has reduced development time from five years to three months, the report said.
\nIt was reported in January that Duolingo cut about 10% of its contractors due to its use of\u00a0generative AI to create content, as it was shifting tasks from staff to AI tools.\u00a0
\nAt the same time, no full-time Duolingo employees were affected by the move, and many now use AI tools in their work.
\nThe company now uses AI to generate scripts for language-teaching shows, making use of the technology\u2019s ability to create text, speech\u00a0and\u00a0images quickly.
\n\u201cWe just no longer need as many people\u00a0to do the type of work some of these contractors were doing,\u201d a Duolingo spokesperson\u00a0told Bloomberg\u00a0in January.
\nDuolingo has also used\u00a0AI, together with data gleaned from marketing campaigns, to learn more about its audiences and increase the utility of its platform for those audiences.
\nThe post Duolingo Credits GenAI\u00a0for 54% Leap in Paid Subscribers appeared first on PYMNTS.com.
\n", "content_text": "Duolingo\u00a0reportedly credits generative artificial intelligence (AI)-powered\u00a0features for the 54% leap in paid subscribers it recorded in the first quarter.\n\u201cWhat we\u2019re\u00a0seeing is that people are willing to pay even more to learn a language through generative AI,\u201d\u00a0Matt Skaruppa, chief financial officer at Duolingo, told the Wall Street Journal (WSJ) in an\u00a0interview\u00a0posted Friday (May 10).\nDuolingo, which offers a language-learning app, also reported a 45% increase in revenue during a quarter in which other online learning companies reported declines in sales, according to the report.\nThe company\u2019s Duolingo Max is a premium subscription tier\u00a0that offers AI-generated feedback and conversations in various languages.\nDuolingo aims to use generative AI to create a \u201chuman-like tutor experience,\u201d the WSJ report said. It currently offers Duolingo Max, which is powered by OpenAI GPT-4 technology, in six countries for those learning Spanish and French, but it plans to add more languages.\nSkaruppa told the WSJ that GenAI helps keep users engaged and helps build word of mouth, which is how Duolingo gets most of its new customers, per the report.\nDuolingo has also found that GenAI has enabled it to accelerate its production of content. On some projects, the technology has reduced development time from five years to three months, the report said.\nIt was reported in January that Duolingo cut about 10% of its contractors due to its use of\u00a0generative AI to create content, as it was shifting tasks from staff to AI tools.\u00a0\nAt the same time, no full-time Duolingo employees were affected by the move, and many now use AI tools in their work.\nThe company now uses AI to generate scripts for language-teaching shows, making use of the technology\u2019s ability to create text, speech\u00a0and\u00a0images quickly.\n\u201cWe just no longer need as many people\u00a0to do the type of work some of these contractors were doing,\u201d a Duolingo spokesperson\u00a0told Bloomberg\u00a0in January.\nDuolingo has also used\u00a0AI, together with data gleaned from marketing campaigns, to learn more about its audiences and increase the utility of its platform for those audiences.\nThe post Duolingo Credits GenAI\u00a0for 54% Leap in Paid Subscribers appeared first on PYMNTS.com.", "date_published": "2024-05-10T15:56:16-04:00", "date_modified": "2024-05-10T15:56:16-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/01/Duolingo.jpg", "tags": [ "AI", "apps", "artificial intelligence", "Duolingo", "Education", "GenAI", "generative AI", "languages", "News", "PYMNTS News", "Subscription Commerce", "subscriptions", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=1889028", "url": "https://www.pymnts.com/subscription-commerce/2024/peloton-drops-free-membership-tier-after-less-than-expected-results/", "title": "Peloton Drops Free-Membership Tier After Less-Than-Expected Results", "content_html": "Connected fitness company\u00a0Peloton\u00a0has stopped offering an unlimited free-membership tier that was once a key part of its growth strategy.
\nThe free tier for the company\u2019s app was added in May 2023 to attract new customers but was dropped within the last few weeks after failing to convert these new users into paid subscribers, CNBC\u00a0reported\u00a0Monday (April 15).
\nPeople who already signed up for the tier will continue to have access to it, but new users will be able to choose from only two paid options \u2014 at $12.99 per month and $24 a month \u2014 after a seven-day free trial, according to the report.
\nThe app was designed to provide an option for potential customers who were interested in the brand but balked at the cost of its fitness equipment, the report said. The free tier for the app was meant to encourage customers to sign up for the app, enjoy the content and then move up to a paid tier that offers additional content.
\nHowever, by last November, Peloton found that this option was engaging and retaining fewer subscribers than the company had expected, per the report. Executives determined that the offer of limited free trial would be more likely to accomplish those goals.
\nWhen announcing the company\u2019s earnings in November, Peloton CEO Barry McCarthy said the\u00a0free version\u00a0of the app had been downloaded more than 1 million times, with limited marketing support.
\n\u201cThe bad news is we were less successful at engaging and retaining free users and converting them to paying memberships than we expected,\u201d McCarthy said at the time.
\nBy the time of its February earnings call, Peloton was rolling out new solutions to drive\u00a0subscription growth.
\nThese include a business-to-business (B2B) program designed to capture businesses\u2019 corporate wellness spending, and a partnership with social media platform TikTok that aims to grow engagement with younger consumers.
\n\u201cCorporate wellness … is having a moment in corporate America for sure, where companies are investing at the margin increasingly in fitness, nutrition, mental wellness, and I think we\u2019re well positioned to participate in that,\u201d McCarthy said at the time.
\nThe post Peloton Drops Free-Membership Tier After Less-Than-Expected Results appeared first on PYMNTS.com.
\n", "content_text": "Connected fitness company\u00a0Peloton\u00a0has stopped offering an unlimited free-membership tier that was once a key part of its growth strategy.\nThe free tier for the company\u2019s app was added in May 2023 to attract new customers but was dropped within the last few weeks after failing to convert these new users into paid subscribers, CNBC\u00a0reported\u00a0Monday (April 15).\nPeople who already signed up for the tier will continue to have access to it, but new users will be able to choose from only two paid options \u2014 at $12.99 per month and $24 a month \u2014 after a seven-day free trial, according to the report.\nThe app was designed to provide an option for potential customers who were interested in the brand but balked at the cost of its fitness equipment, the report said. The free tier for the app was meant to encourage customers to sign up for the app, enjoy the content and then move up to a paid tier that offers additional content.\nHowever, by last November, Peloton found that this option was engaging and retaining fewer subscribers than the company had expected, per the report. Executives determined that the offer of limited free trial would be more likely to accomplish those goals.\nWhen announcing the company\u2019s earnings in November, Peloton CEO Barry McCarthy said the\u00a0free version\u00a0of the app had been downloaded more than 1 million times, with limited marketing support.\n\u201cThe bad news is we were less successful at engaging and retaining free users and converting them to paying memberships than we expected,\u201d McCarthy said at the time.\nBy the time of its February earnings call, Peloton was rolling out new solutions to drive\u00a0subscription growth.\nThese include a business-to-business (B2B) program designed to capture businesses\u2019 corporate wellness spending, and a partnership with social media platform TikTok that aims to grow engagement with younger consumers.\n\u201cCorporate wellness … is having a moment in corporate America for sure, where companies are investing at the margin increasingly in fitness, nutrition, mental wellness, and I think we\u2019re well positioned to participate in that,\u201d McCarthy said at the time.\nThe post Peloton Drops Free-Membership Tier After Less-Than-Expected Results appeared first on PYMNTS.com.", "date_published": "2024-04-15T17:30:02-04:00", "date_modified": "2024-04-15T17:30:02-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/04/Peloton-1.jpg", "tags": [ "fitness", "free membership", "free tier", "free trial membership", "News", "Peloton", "PYMNTS News", "Retail", "Subscription Commerce", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=1888300", "url": "https://www.pymnts.com/subscription-commerce/2024/barkbox-service-lets-well-heeled-dogs-fly-in-style/", "title": "BarkBox Service Lets Well-Heeled Dogs Fly in Style", "content_html": "No pet parent relishes the idea of their dog traveling in a plane\u2019s cargo hold.
\nA new service by subscription dog treat company\u00a0BarkBox aims to end that situation for pet lovers who can afford it.
\nAs Bloomberg News reported Friday (April 12),\u00a0Bark Air\u00a0lets dog owners\u00a0reserve flights\u00a0on Gulfstream 550 private jets, with all members of the family traveling in the main cabin.\u00a0
\nAccording to the report, the airline will offer weekly flights from New York to Los Angeles \u2014 and LA to NY \u2014 as well as twice monthly flights from New York to London, with fares starting at $6,000 one-way on the transcontinental U.S. flights\u2014a ticket includes a seat for one person plus one dog\u2014plus $8,000 one-way on the New York to London route.
\nThe first flights \u2014 on jets owned and operated by charter company Talon Air \u2014 will take off May 23, with dogs allowed to sit anywhere in the cabin. Flights offer a dog-specific menu with delicacies such as \u201cdog Champagne\u201d (chicken broth), and someday include an onboard play area resembling a dog park.
\n\u201cWe\u2019ll find out if this is a service that the world wants and values,\u201d\u00a0Matt Meeker, Bark\u2019s co-founder and CEO, told Bloomberg. \u201cIf not, we\u2019re going to have a heck of a time finding out.\u201d
\nRegardless of whether dog owners want Bark\u2019s specific offering, recent reporting by PYMNTS shows that pet parents\u00a0value services that treat their four-legged friends\u00a0like part of the family.
\nThese feelings are being harnessed by companies like\u00a0Synchrony, whose\u00a0CareCredit\u00a0earlier this year launched a collaboration with\u00a0Destination Pet, a provider of veterinary care and pet services. It involves offering CareCredit\u2019s financing solution at Destination Pet locations across the country, for things like boarding, daycare, grooming, veterinary care and pet resorts.\u00a0\u00a0
\n\u201cIn our conversations with the executive team at Destination Pet \u2014 their customers are asking for it,\u201d Jonathan Wainberg, GM of Synchrony\u2019s pet business, told PYMNTS in January.\u00a0
\n\u201cPeople are still bringing pets into their family and at increased rates. And they are\u00a0spending more,\u201d Wainberg said.\u00a0\u00a0
\nBacking up this assertion is data showing that in 2022, the global pet care market reached $235.32 billion and is expected to reach $368.88 billion by 2030.\u00a0
\n\u201cThese figures clearly indicate why Synchrony is seeking to expand its market share in the industry,\u201d PYMNTS wrote.
\nThe post BarkBox Service Lets Well-Heeled Dogs Fly in Style appeared first on PYMNTS.com.
\n", "content_text": "No pet parent relishes the idea of their dog traveling in a plane\u2019s cargo hold.\nA new service by subscription dog treat company\u00a0BarkBox aims to end that situation for pet lovers who can afford it.\nAs Bloomberg News reported Friday (April 12),\u00a0Bark Air\u00a0lets dog owners\u00a0reserve flights\u00a0on Gulfstream 550 private jets, with all members of the family traveling in the main cabin.\u00a0\nAccording to the report, the airline will offer weekly flights from New York to Los Angeles \u2014 and LA to NY \u2014 as well as twice monthly flights from New York to London, with fares starting at $6,000 one-way on the transcontinental U.S. flights\u2014a ticket includes a seat for one person plus one dog\u2014plus $8,000 one-way on the New York to London route.\nThe first flights \u2014 on jets owned and operated by charter company Talon Air \u2014 will take off May 23, with dogs allowed to sit anywhere in the cabin. Flights offer a dog-specific menu with delicacies such as \u201cdog Champagne\u201d (chicken broth), and someday include an onboard play area resembling a dog park.\n\u201cWe\u2019ll find out if this is a service that the world wants and values,\u201d\u00a0Matt Meeker, Bark\u2019s co-founder and CEO, told Bloomberg. \u201cIf not, we\u2019re going to have a heck of a time finding out.\u201d\nRegardless of whether dog owners want Bark\u2019s specific offering, recent reporting by PYMNTS shows that pet parents\u00a0value services that treat their four-legged friends\u00a0like part of the family.\nThese feelings are being harnessed by companies like\u00a0Synchrony, whose\u00a0CareCredit\u00a0earlier this year launched a collaboration with\u00a0Destination Pet, a provider of veterinary care and pet services. It involves offering CareCredit\u2019s financing solution at Destination Pet locations across the country, for things like boarding, daycare, grooming, veterinary care and pet resorts.\u00a0\u00a0\n\u201cIn our conversations with the executive team at Destination Pet \u2014 their customers are asking for it,\u201d Jonathan Wainberg, GM of Synchrony\u2019s pet business, told PYMNTS in January.\u00a0\n\u201cPeople are still bringing pets into their family and at increased rates. And they are\u00a0spending more,\u201d Wainberg said.\u00a0\u00a0\nBacking up this assertion is data showing that in 2022, the global pet care market reached $235.32 billion and is expected to reach $368.88 billion by 2030.\u00a0\n\u201cThese figures clearly indicate why Synchrony is seeking to expand its market share in the industry,\u201d PYMNTS wrote.\nThe post BarkBox Service Lets Well-Heeled Dogs Fly in Style appeared first on PYMNTS.com.", "date_published": "2024-04-14T18:34:51-04:00", "date_modified": "2024-04-14T18:36:37-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/04/dog-travel-BarkBox.jpg", "tags": [ "Bark Air", "BarkBox", "News", "petcare", "Pets", "PYMNTS News", "Retail", "Subscription Commerce", "travel", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=1877666", "url": "https://www.pymnts.com/subscription-commerce/2024/paid-subscriptions-credited-for-spike-in-recorded-music-revenues/", "title": "Paid Subscriptions Credited for Spike in Recorded Music Revenues", "content_html": "Global recorded music revenues exploded in 2023, thanks mainly to a surge in paid streaming subscribers.
\nAccording to The IFPI Global Music Report, revenues from recorded music worldwide were up 10.2% last year to $28.6 billion, surpassing 2022\u2019s 9% increase and marking the ninth consecutive year of growth.
\nThe main driver behind the revenue spike was paid music streaming subscriptions, which were up 11.2% last year. The number of paid subscribers exceeded 500 million for the first time, reaching 667 million accounts worldwide.
\nThis news comes as music to the ears of record company executives, artists and others in the industry. But it also suggests digital music providers such as Spotify can be thankful they don\u2019t have to deal with the many challenges other retailers must juggle when working to meet the needs of their subscriber base.
\nMake no mistake, retail subscriptions can be profitable. A PYMNTS Intelligence study revealed that 30% of retail subscribers generate 79% of total revenue across the retail subscription space. One retailer alone, Chewy, recently reported that its autoship subscription program was responsible for generating about $8.5 billion in customer sales throughout 2023.
\nNot only can retail subscription plans prove profitable, they are also an effective way to keep customers happy. PYMNTS Intelligence\u2019s \u201cThe Replenish Economy: A Household Supply Deep Dive\u201d report found about 42% of retail subscribers were able to minimize trips to their preferred stores because those retailers offered online subscriptions that met customer needs.
\nBut keeping those customers happy can be challenging.
\nAs PYMNTS Intelligence found in compiling \u201cThe Retail Subscription Features That Make Top-Performing Merchants,\u201d \u201c[retail] subscribers who complete most or all their shopping via scheduled delivery and/or automatic refills are a lucrative but demanding group of customers.\u201d
\nThe report is based on surveys of 2,011 consumers and nearly 200 merchants and provides a comprehensive overview of what today\u2019s subscribers look for in subscription services.
\nFor starters, consumers who are scheduled subscription shoppers (those who mostly shop via pre-scheduled and automatic refill subscriptions; roughly 26% of respondents) expect a smooth payment experience. In fact, they are much more likely than other consumer segments to cancel subscriptions should any payment-related problems arise.
\nFor instance, if a merchant doesn\u2019t offer a buy now, pay later (BNPL) option, these subscribers are around 3 percentage points more likely to cancel. They are also more likely to walk away if a merchant fails to notify them that a failed payment will result in a missed delivery, or if they encounter any friction when updating their accounts.
\nThis segment also expects hassle-free refunds. After all, the reason most sign up for pre-scheduled deliveries is because they anticipate effortless shipments, and they believe frictionless returns are part of that package.
\nAnother type of subscription shoppers are online at-will shoppers. They make up 43% of the retail subscriber community and typically complete their at-will shopping online. For this segment, timing is crucial. Most will wait to purchase items when needed. And one-quarter of them will cancel a subscription if it fails to offer pause or skip options, which enable consumers to temporarily pause a subscription for any reason or skip an order before its delivered.
\nThe third segment, accounting for 31% of subscription shoppers, are in-store shoppers. They mainly shop in brick-and-mortar locations despite having online retail subscriptions. The reason? Respondents said they enjoy the thrill of the hunt. They want to explore potential purchases in person and control product selection whenever possible.
\n![\"\"](\"https://www.pymnts.com/wp-content/uploads/2024/03/subscribers-product-selection-consumer-preferences.png\")
As the image above shows, product selection is especially important to in-store retail subscribers. They are six times more likely to cite it, and easier browsing, as key components to their shopping experience.
\nNot all merchants offer the features subscribers want, but PYMNTS Intelligence identifies the features the highest-rated retailers offer.
\nFor instance, 100% of top performers give subscribers the option to pause or skip (only 20% of the lowest-ranked merchants do the same). Ninety-seven percent of top performers provide product details and the ability to alter the frequency of deliveries (60% and 10% of bottom performers, respectively, do the same). Guarantees and refunds are also offered by 97% of top performers (while 17% of bottom performers do).
\nOne thing these findings make clear is that subscription providers \u2014 whether they operate in the retail space, the entertainment industry, or another market entirely \u2014 can\u2019t take their subscribers for granted.
\nAs PYMNTS Intelligence data found, subscribers are keenly aware that today\u2019s subscription landscape is highly competitive and full of entrepreneurs looking to earn their business. If providers want to keep sustaining growth, they will need to clear the bar that subscribers set.
\nThe post Paid Subscriptions Credited for Spike in Recorded Music Revenues appeared first on PYMNTS.com.
\n", "content_text": "Global recorded music revenues exploded in 2023, thanks mainly to a surge in paid streaming subscribers.\nAccording to The IFPI Global Music Report, revenues from recorded music worldwide were up 10.2% last year to $28.6 billion, surpassing 2022\u2019s 9% increase and marking the ninth consecutive year of growth.\nThe main driver behind the revenue spike was paid music streaming subscriptions, which were up 11.2% last year. The number of paid subscribers exceeded 500 million for the first time, reaching 667 million accounts worldwide.\nThis news comes as music to the ears of record company executives, artists and others in the industry. But it also suggests digital music providers such as Spotify can be thankful they don\u2019t have to deal with the many challenges other retailers must juggle when working to meet the needs of their subscriber base.\nMake no mistake, retail subscriptions can be profitable. A PYMNTS Intelligence study revealed that 30% of retail subscribers generate 79% of total revenue across the retail subscription space. One retailer alone, Chewy, recently reported that its autoship subscription program was responsible for generating about $8.5 billion in customer sales throughout 2023.\nNot only can retail subscription plans prove profitable, they are also an effective way to keep customers happy. PYMNTS Intelligence\u2019s \u201cThe Replenish Economy: A Household Supply Deep Dive\u201d report found about 42% of retail subscribers were able to minimize trips to their preferred stores because those retailers offered online subscriptions that met customer needs.\nBut keeping those customers happy can be challenging.\nAs PYMNTS Intelligence found in compiling \u201cThe Retail Subscription Features That Make Top-Performing Merchants,\u201d \u201c[retail] subscribers who complete most or all their shopping via scheduled delivery and/or automatic refills are a lucrative but demanding group of customers.\u201d\nThe report is based on surveys of 2,011 consumers and nearly 200 merchants and provides a comprehensive overview of what today\u2019s subscribers look for in subscription services.\nFor starters, consumers who are scheduled subscription shoppers (those who mostly shop via pre-scheduled and automatic refill subscriptions; roughly 26% of respondents) expect a smooth payment experience. In fact, they are much more likely than other consumer segments to cancel subscriptions should any payment-related problems arise.\nFor instance, if a merchant doesn\u2019t offer a buy now, pay later (BNPL) option, these subscribers are around 3 percentage points more likely to cancel. They are also more likely to walk away if a merchant fails to notify them that a failed payment will result in a missed delivery, or if they encounter any friction when updating their accounts.\nThis segment also expects hassle-free refunds. After all, the reason most sign up for pre-scheduled deliveries is because they anticipate effortless shipments, and they believe frictionless returns are part of that package.\nAnother type of subscription shoppers are online at-will shoppers. They make up 43% of the retail subscriber community and typically complete their at-will shopping online. For this segment, timing is crucial. Most will wait to purchase items when needed. And one-quarter of them will cancel a subscription if it fails to offer pause or skip options, which enable consumers to temporarily pause a subscription for any reason or skip an order before its delivered.\nThe third segment, accounting for 31% of subscription shoppers, are in-store shoppers. They mainly shop in brick-and-mortar locations despite having online retail subscriptions. The reason? Respondents said they enjoy the thrill of the hunt. They want to explore potential purchases in person and control product selection whenever possible.\n\nAs the image above shows, product selection is especially important to in-store retail subscribers. They are six times more likely to cite it, and easier browsing, as key components to their shopping experience.\nNot all merchants offer the features subscribers want, but PYMNTS Intelligence identifies the features the highest-rated retailers offer.\nFor instance, 100% of top performers give subscribers the option to pause or skip (only 20% of the lowest-ranked merchants do the same). Ninety-seven percent of top performers provide product details and the ability to alter the frequency of deliveries (60% and 10% of bottom performers, respectively, do the same). Guarantees and refunds are also offered by 97% of top performers (while 17% of bottom performers do).\nOne thing these findings make clear is that subscription providers \u2014 whether they operate in the retail space, the entertainment industry, or another market entirely \u2014 can\u2019t take their subscribers for granted.\nAs PYMNTS Intelligence data found, subscribers are keenly aware that today\u2019s subscription landscape is highly competitive and full of entrepreneurs looking to earn their business. If providers want to keep sustaining growth, they will need to clear the bar that subscribers set.\nThe post Paid Subscriptions Credited for Spike in Recorded Music Revenues appeared first on PYMNTS.com.", "date_published": "2024-03-22T17:50:43-04:00", "date_modified": "2024-03-22T17:50:43-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/03/music-streaming-subscription-commerce.png", "tags": [ "consumer insights", "entertainment", "Music", "News", "PYMNTS Intelligence", "PYMNTS News", "Retail", "Streaming", "Subscription Commerce", "subscriptions" ] } ] }