In 1856, Singer introduced a novel way to rent their sewing machines for $3 per month. The first at-scale consumer subscription business came with the invention of the telephone a few years later. A hundred and twenty years later, the subscription economy is a $1.5 Trillion business.
YoY Leading economic indicators (LEIs) in the US have been negative every quarter since April 2022. Consumer spending on services continues to defy gravity which provides for some hope amid the grim outlook.
When users feel that a business understands their needs and offers personalized recommendations, they are likelier to continue their subscription. Proactive recommendations provide users with cost-saving options and demonstrate that the business values their satisfaction and aims to provide the best possible experience.