The subscription year 2025: High competition, personalization, and value sets the scene

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By Morten Suhr Hansen

About a month ago, I shared my own take on the most dominant trends and tendencies for subscription businesses as we head into 2025. Since then, at Subscrybe, we have asked a number of other subscription experts the same questions and gathered their insights in the article ’Featured Subscription Trends 2025’.

The experts represent a mix of industry insiders and professionals working directly with subscription businesses in their daily operations. This provides an interesting and nuanced perspective on the challenges and opportunities ahead.

They have provided fascinating answers on everything from key competitive factors and upcoming trends to the biggest challenges. Here are my overall reflections and perspectives on how subscription businesses can best prepare for 2025 – based on the experts’ insights.

A critical but curious subscription consumer

Several experts point out that the subscription consumer in 2025 will be extremely discerning. It’s no secret that consumers are increasingly jumping in and out of subscriptions – the so-called “churn-and-return” behavior. What’s new is the heightened focus on continuous value delivery from subscription providers. There is no longer room for products that neither impress nor fulfill a real everyday need.

At the same time, competition is intensifying as new subscription concepts emerge across industries. This makes it challenging for consumers to navigate but also raises the bar for businesses. Customers will quickly leave subscriptions that don’t provide value and cancel them without hesitation.

Personalized value proposition and flexibility

Another key theme among the experts’ insights is personalization. The ability to tailor content, delivery, and pricing to individual customer needs is seen as the most important competitive factor in 2025. Louise Byg Kongsholm from PEJ Gruppen highlights personalization as the key to retaining customers who have become increasingly skilled at comparing prices and switching services.

Hyper-personalization requires strong data collection and analysis, and there is every indication that the use of AI and machine learning will increase significantly in the coming years.

Flexibility is another essential factor. Many consumers expect to be able to easily pause or downgrade their subscriptions. For businesses, this means managing more complex product structures, but the benefit is a more positive customer experience – and a higher likelihood that customers will return if they decide to cancel for a period.

Bundling and new partnerships

The new trend article also highlights bundling as a key trend. Media companies and streaming services are leading the way, forming partnerships and offering bundled packages. But telecom companies, retail brands, and other industries are also experimenting with collaborations that provide extra value to consumers.

The advantage is clear: customers feel they receive greater, more integrated value, making it harder to cancel a package with multiple benefits than a single standalone subscription. However, bundling requires carefully selected partners and a package that makes sense from the subscriber’s perspective.

Retention and onboarding – two critical phases

When asked which part of the subscription journey will be most important in 2025, most experts answer: retention. Acquiring new customers is often expensive, and failing to retain them can lead to a vicious cycle of high churn and rising marketing costs. Retention is achieved through continuous value delivery, proactive communication, and personalized offers.

Another critical focus area is onboarding. If you create a strong start where the customer quickly experiences the value of the subscription and how it fits into their daily life, long-term loyalty is more likely. The onboarding phase is where good customer habits are formed. If you fail to engage them early, you risk ending up with inactive subscribers who will cancel at the first opportunity.

Sustainability and (still) a strong focus on price

Another key takeaway is that sustainability and environmental concerns remain central. Many experts expect that future subscriptions will need to offer consumers a greener way to consume. However, price remains a crucial factor in an uncertain economic climate. Consumers may express a desire for sustainable choices, but they often only act on them if the price is competitive – or if the value is crystal clear.

Many subscription businesses still struggle to balance economy, value, and sustainability, but circular subscription models – where renting replaces ownership – are particularly interesting. The transportation and fashion industries are already moving in this direction, and we are also seeing initiatives in electronics, eyewear, and accessories.

AI and system support

Finally, it’s important to emphasize that technology and systems are becoming even more crucial. Experts from the payments and system sectors, including Billwerk+, Vipps MobilePay, and Agillic, unanimously highlight that consumers expect seamless and secure payment flows, flexible solutions, and targeted communication. As personalization and data-driven insights become more important, AI will play a key role. For many small and medium-sized subscription businesses, the challenge will be securing the right expertise. In these cases, partnerships with technology providers will likely be the best way forward.

Are you ready to seize the opportunities?

Overall, 2025 paints a picture of a growing and increasingly mature subscription market. The competition for consumers’ attention will be tougher, but there are clear opportunities for those who can deliver lasting value, tailored solutions, and an experience that puts the consumer at the center.

In my view, the key to success is continuously adapting your subscription model to customer needs: Think personalization, flexibility, and bundling in one unified strategy, and work dedicatedly on onboarding and retention. Subscription as a business model is here to stay, but to thrive in 2025, companies must do more than simply process credit card payments.

They must create a relationship that provides real value to customers – every single day. I hope this has inspired you to dive into the full report and explore the many interesting insights. A big thank you to all our experts for sharing their perspectives on an exciting subscription year ahead!

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