By Morten Suhr Hansen
2024 is drawing to a close. As these lines are written, most of us are probably fully immersed in wrapping up the last work projects while also feeling the stress or excitement about the upcoming Christmas with family and friends.
But these days also bring moments of reflection, and soon we will start pondering what 2024 has been. What have we accomplished, and what have we learned? I’ve been reflecting on this as well, both in terms of the subscription movement in general and for us at Subscrybe. I’d love to share these thoughts with you.
The subscription movement is gaining momentum
Let’s take a closer look at the subscription movement as a whole. Is it progressing or stagnating? Are we still eager for subscriptions, or have we become overwhelmed by too many fixed payments and binding contracts? A couple of months ago, we set out to investigate this. The conclusion is clear!
The subscription movement is indeed charging ahead! Our major study, the Scandinavian Subscription Survey 2024, which we published in October, shows that consumers in Denmark, Norway, and Sweden are happy with their subscriptions—and they have more than ever before. In fact, the average Scandinavian household now has 20 subscriptions, nearly a 20% increase compared to 2020 when a similar survey was last conducted.
In terms of revenue, the underlying subscription economy is also significant. The average Danish household now spends about 78,000 DKK annually on subscriptions. This amounts to 218 billion DKK for Danish households alone, not even counting the many business subscriptions!
And it doesn’t stop there. In fact, 49% of Scandinavians expect that we will subscribe more to products and services in the future. Only 17% believe the opposite.
But why has it become even harder to run a subscription business?
The strong consumer demand is, of course, great news for businesses selling subscriptions. But, as with everything, there are no roses without thorns. The competition for consumers’ attention has become fierce. At the same time, consumers have become savvy ‘subscription shoppers.’ Price now matters more than ever in 2024, and if a subscription doesn’t provide value—or if the subscriber no longer needs it—it will be quickly canceled.
So, despite the tailwind for the subscription industry, many subscription businesses are facing tough times. Higher churn rates. Lower loyalty. Rising sales costs. It takes hard work and expertise, and constant innovation is required. Only the most skilled subscription businesses will experience growth in an increasingly competitive market.
Existing businesses are focusing more on churn and subscriber journeys
Perhaps this is why, here at Subscrybe, we’ve been busier than ever before. 2024 will undoubtedly be a record year for us. This is because we’ve put a strong focus on helping and empowering existing subscription businesses.
Our declared goal is to develop your subscription business by focusing on customer loyalty and business growth—through strategic and tactical consulting that creates long-term value for both your customers and your bottom line. We do this through a wide range of targeted products, such as churn prevention, subscriber journey development, and the introduction of various loyalty strategies to extend the lifetime of your subscribers.
Thankfully, more subscription businesses have recognized the importance of this, which is why, in December, we had to strengthen our team even further by adding new talent and upgrading existing resources.
So, there’s no doubt that we are looking forward to an exciting 2025. Consumers are saying they want more subscriptions. We are ready to help deliver them—are you ready too?
