For companies offering beauty or food boxes, the numbers of lapsed users may be a bigger red flag than the low penetration. Of those surveyed, 12% said they used to subscribe to a delivery service for beauty products but don’t anymore, compared with just 8% who were currently subscribed. Food services also struggle to retain subscribers, with 11% of respondents being lapsed users and only 7% saying they currently subscribe.

Retailers and brands will need to figure out how to optimize the value proposition in order to convert and keep shoppers. Only 23% of grocery subscription box subscribers found the service valuable (defined as beneficial, useful and helpful), per a November 2018 survey from Digitas and The Harris Poll. Respondents were three times more likely to find TV and movie subscriptions valuable and twice as likely to find music subscriptions valuable.

Sourced through from: