How Subscription Brands Can Overcome “Subscription Fatigue” with Affiliate Marketing
Amidst ongoing economic uncertainty, subscription models can still find success by offering consumers a combination of convenience and value, especially when providing necessary replenishable items like groceries and household supplies.
However, volatile economic conditions aren’t the only burden subscription service brands are facing. They must also contend with Amazon’s “Subscribe & Save” services and other subscription offerings from retail giants.
If you offer subscription services, you must explore new ways to differentiate yourself from major brands while simultaneously delivering good value for consumers. You must also learn to navigate another new and unprecedented challenge: subscription fatigue.
Let’s examine subscription fatigue and how you can overcome it with affiliate marketing.
The state of the subscription market
According to Forbes, the e-commerce subscription market is projected to reach a value of $904.2 billion by 2026. As of 2022, the market had a value of just $120.04 billion, meaning it’s expected to grow by $784 billion in a four-year period. Talk about meteoric growth.
However, the rapid maturation of the e-commerce subscription market has led to some growing pains. More specifically, brands across a wide range of verticals are jumping on the subscription bandwagon.
While there should be plenty of revenue to go around, all those ads for subscription services and products are overwhelming consumers, leading to a phenomenon known as “subscription fatigue.”
What is subscription fatigue?
Subscription fatigue is a term used to describe feelings of frustration among consumers as a result of the sheer volume of subscription services being offered in today’s market. In other words, many people are tired of purchasing and managing so many different subscription services and have little interest in adding more to the mix.
According to recent research, 47% of U.S. consumers are experiencing subscription fatigue. This statistic isn’t all that surprising, considering how many services and products are delivered via subscription models these days. Everything from coffee to entertainment is offered using recurring monthly billing strategies.
That said, the threat of subscription fatigue doesn’t mean you should scrap your subscription model. You simply need to find a way to stand out from the competition and deliver your products in a manner that delivers real value for consumers — value that they can’t imagine going without.
How you can breathe new life into your subscription service
Whether you’re planning a new subscription service or need to revamp your existing one, there are a few things you can do to overcome subscription fatigue. A few top tactics include the following.
Offer discounts for recurring orders
Offering discounts for recurring orders gives customers a little extra incentive to maintain their subscriptions.
For instance, you could knock a small percentage off each monthly purchase if the customer agrees to at least six months of orders. Alternatively, you could give consumers the option to pay for a year of service or products up front in exchange for a discount.
Yet another approach involves adding a free item to their shipment. For example, many meal kit providers will throw in a free appetizer or package of meat when customers sign up. They typically advertise these as lifetime perks to discourage consumers from canceling their subscriptions.
Work with affiliates to maximize your reach
Affiliates and social influencers can be great additions to your subscription service marketing strategy. You can work with influencers to promote your service or product through social media pages.
Consumers are more likely to sign up when they see their favorite influencer promoting your product, even if they already have several subscription services.
Partnering with loyalty, deal, and coupon affiliates can also greatly benefit a subscription service. These affiliates bring in new subscribers through their established customer base seeking discounts.
They increase brand exposure through their marketing channels and retain existing customers by offering exclusive rewards. The affiliates’ data on customer preferences enables targeted campaigns, and the performance-based model ensures cost efficiency.
Additionally, partnerships with affiliates open doors for strategic collaborations, while backlinks from affiliates boost SEO.
Subscription services success stories
Acceleration Partners (AP) has facilitated several affiliate marketing success stories for subscription service brands, such as Noom, Stitch Fix, and Purple Carrot. Discover how AP helped these brands reach their goals.
Noom Breaks Into New Markets Via Content Partnership with The Independent
Noom, a global health and fitness company, was looking to establish a presence in the UK while differentiating themselves from their competition and demonstrating the uniqueness of their solution. AP secured a content partnership with The Independent for Noom, resulting in:
267% increase in YoY sign-ups
2,600+ UK enrollments
17,000 clicks generated
Stitch Fix Drives 128 First Fixes with a Bespoke Content Partnership
Stitch Fix, an online personal styling service, partnered with Acceleration Partners to increase brand recognition and new customer acquisition. Through a new partnership with BuzzFeed UK, Stitch Fix was able to achieve in just three months:
128 “first fixes”
26,000 article views
1,583 clicks
Purple Carrot Cultivates 68% More Orders with Performance Partnerships
Purple Carrot, a plant-based meal kit delivery company, significantly increased its order volume through strategic affiliate partnerships. AP helped Purple Carrot establish a robust network of top-of-funnel partners to expand their reach and attract new customers. This resulted in:
+68% increase in orders and revenue QoQ
30% increase in ROAS QoQ
Connect with Acceleration Partners
The best way to boost your subscription brand’s sales is to work with Acceleration Partners and our team of world-class partnership marketing experts. We can develop or strengthen your partnership marketing program, connect you with diverse, highly-active partners, and help you shatter your sales goals.
