How Much Are Your FI’s Customers Overspending On Subscription Services
Whether it’s streaming services, weekly grocery deliveries, or even monthly curated collections of everything from clothing to pet toys, Americans have embraced the subscription economy. On average, most Americans are carrying 12 subscription services and if you’re a Millennial, that number rises to 17. But there is a cost to that convenience, as indicated by a recent market research study by C+R Research, which found that the average spend on subscription services by American consumers was more than $200 per month.
More notably, was the disconnect that the survey uncovered between what U.S. consumers thought they were paying for subscription services versus what they actually are paying.
Survey participants estimated, on average, that they were paying around $85 per month for subscription services, when in reality, they are paying more than double that amount. In fact, 43 percent of those surveyed underestimated the amount of their monthly subscription costs by as much as $100 - $300 dollars, and that’s per month.
With the most recent economic data confirming that the U.S. economy has likely entered into a period of recession, we know that consumers are feeling the squeeze on their wallets and are looking for ways to save money. This presents an opportunity for banks and credit unions to step in and serve as a true financial wellness partner for their customers and members.
Subscription management services are just one way that financial institutions can help their customers and members easily unsubscribe from unwanted subscription services with the simple click of a button – all within their existing mobile banking app. Consumers are able to avoid the hassle of finding the subscription provider, sitting through seemingly never-ending holds and then being pressured with retention efforts. This proven strategy generates immediate, meaningful value to consumers’ wallets, saving them money that can then be redirected toward other banking products like savings accounts, retirement accounts, college savings, etc.
Through ApexEdge’s simple API integration, minimal data is necessary to process subscription management requests and a team of experienced Cancellation Experts manages the process on the consumer’s behalf, working to cancel unwanted subscriptions and even obtain refunds that are then processed directly back to their bank accounts.
At ApexEdge, we have a wealth of experience in helping banks and credit unions better engage with their customers and members through the digital channel – and we are able to support it at scale. To learn more about how your institution can better support your customers and members and help them save money on their existing subscription services, contact us.
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