39% of Brits pay for subscription delivery services
According to new research revealed by Mintel, four in ten Brits have signed up to subscription delivery services such as Amazon Prime. Whilst non-essential sectors have struggled, Loyalty reward schemes for supermarkets and Amazon Prime’s combination of delivery services and streaming entertainment benefitted from the COVID-19 pandemic.
The data shows that 54% of brits who subscribed to the delivery services were aged between 25-34. Despite young people taking the most advantage of the subscriptions, almost a quarter (23%) of over-65s are members too. Amazon prime continues to lead in the UK with three in ten (31%) brits members of Amazon Prime up from 23% in 2018.
It looks like subscription delivery services are the most attractive to consumers with 62% of subscription members taking advantage of free or extra delivery options, 49% favoring better delivery times and 43% wanting free returns as an option.
“As a result of the COVID-19 pandemic, retailers are facing unprecedented challenges and customer loyalty has become more important than ever before. While a considerable number of new paid subscriptions have emerged, Amazon Prime continues to gain popularity. It is essential that the other players look at the online giant’s scheme as a benchmark and understand how they can incorporate some of its competitive advantages into their own offerings.
“Consumers are increasingly expecting products and services to be delivered to them quickly, wherever they are. In fact, same day delivery is one of Amazon’s main competitive advantages over other online rivals, and while its competitors offer a same-day service, this is usually an extra add-on. For Amazon Prime, the attraction goes beyond fast delivery service; it is access to a vast digital library of streaming entertainment, including Prime Video, Prime Music, and Prime Reading, that has allowed it to excel.”
– Armando Falcao, Retail Research Analyst, Mintel