Secondary Research

Market Analysis

1. Growth of Subscription Services:
   • The subscription economy has grown significantly over the past decade, with many consumers subscribing to multiple services across various categories such as entertainment, software, health and wellness, and retail. According to a report by Zuora, the subscription economy grew more than 435% over the past nine years.
2. Consumer Behaviour:
   • A survey by West Monroe found that 84% of consumers underestimated their monthly subscription costs, highlighting a widespread lack of awareness about recurring expenses.
   • Many consumers subscribe to services impulsively and often forget to cancel them, leading to "subscription fatigue" where they feel overwhelmed by managing multiple services.

Pain Points in Subscription Management

1. Visibility and Tracking:
   • Consumers find it difficult to keep track of all their subscriptions due to the lack of a centralised platform. This results in paying for services they no longer use or need.
2. Complex Cancellation Processes:
   • Many subscription services make it intentionally difficult to cancel subscriptions, involving multiple steps or obscure cancellation options. This discourages users from cancelling unwanted services.
3. Financial Impact:
   • Hidden or forgotten subscriptions can add up, impacting personal finances significantly. A survey by Truebill indicated that the average consumer spends over $200 (£157) a month on subscriptions, with a considerable portion going unnoticed.

Existing Solutions

1. Subscription Management Apps:
   • Several apps like Truebill, Trim, and Bobby have emerged to help users manage their subscriptions. These apps typically offer features such as subscription tracking, cancellation services, and spending analysis.
   • Despite the availability of these apps, users often report issues with usability, limited integration with all service providers, and concerns over data privacy.
2. Technological Trends:
   • AI and Automation:
     • The use of AI and machine learning in subscription management can enhance the ability to detect subscriptions, predict spending patterns, and offer personalised recommendations for cost-saving.
     • Automation can simplify the cancellation process by automatically filling out forms or navigating cancellation steps on behalf of the user.
   • Security and Privacy:
     • As subscription management apps require access to sensitive financial information, ensuring robust security measures and transparent data usage policies is critical to gaining user trust.

Insights for Product Development

1. Centralised Dashboard:
   • Develop a comprehensive dashboard that aggregates all subscription data in one place, providing users with a clear overview of their subscriptions and costs.
2. Easy Cancellation:
   • Simplify the cancellation process by providing direct links, step-by-step guides, or automated cancellation features to reduce user effort.
3. Financial Insights:
   • Offer detailed analytics on subscription spending, including monthly trends, category breakdowns, and potential savings opportunities.
4. Notifications and Alerts:
   • Implement a notification system to remind users of upcoming renewals, price changes, and free trial expirations to prevent unexpected charges.
5. Security Focus:
   • Prioritise data security and privacy by using encryption, secure authentication methods, and transparent data policies to build user trust.

By leveraging these insights, the subscription management product can effectively address common pain points and provide users with a valuable tool for managing their recurring expenses.