LEWISVILLE, Texas, May 26, 2015 /PRNewswire/ -- Subscription
services have become an increasingly prevalent part of consumers'
lives – from legacy products such as broadband, telephone and cable
TV services to newer offerings like streaming content and grocery
delivery subscriptions. In Blackhawk Engagement Solutions' newly
published shopper research, it reveals the top subscription-based
services and examines the ways consumers research and purchase
these offerings.
Experience the interactive Multimedia News Release here:
http://www.multivu.com/players/English/7533151-blackhawk-engagement-shopper-research/
"In the age of sophisticated and engrained deal-finding
behaviors, shoppers have identified intelligent ways to not only
save on subscription services, but leverage new kinds of
subscription services to reduce the cost of older product and
service options," said Rodney Mason,
GVP of Marketing with Blackhawk Engagement Solutions, an
international incentives and engagement company. "Our research
revealed the top incentives for motivating consumers to try or move
to certain subscription services."
The survey, conducted in March
2015, questioned 1,757 US consumers that Blackhawk
Engagement Solutions believe are representative of the country's
demographics. Key findings include:
- Most subscribed services: 89% of Americans subscribe to
Internet service, followed by 83% who subscribe to cell phone
plans. While 74% have a cable subscription, basic cable (36%) is
about to eclipse premium cable (38%), which could be due to
migration to streaming/on demand services. More than half of
consumers (52%) subscribe to streaming TV or movie content. And
recurring grocery/consumer goods delivery subscriptions are just
beginning to take off, but are already in the double digits, with
16% of Americans using these services.
- Prepaid cards, paid termination fees top motivators for
Internet subscribing: When looking for a new Internet service
provider, most shoppers (59%) will select a provider that offers a
prepaid card incentive versus monthly discounts or other incentives
like a free tablet. And for shoppers interested in switching
Internet service providers before their contracts have expired, a
top motivator to do so is when the new provider pays the
termination fee charged by the old provider (64%).
- "Triple-play" bundle shoppers' path to purchase can be
disrupted: Consumers shopping for a triple-play subscription
(phone, TV, Internet) take 3–6 days on average to make their
decision and shop 1–2 competitors. Their path to purchase most
frequently involves searching providers' websites, then turning to
Google, then going in-store or calling and finally checking with
Amazon before buying. Shoppers report that this routine can be
disrupted by a dynamically placed rebate adding more value than the
best in-market instant discounts.
- Online and digital delivery of movies skyrockets in
popularity: More than half of consumers (57%) prefer
online/digital delivery of movies versus 29% that rent movies from
a store or kiosk and 15% that rent or buy online through a
retailer. In consideration of a $14.99 per month video streaming service,
consumers overwhelmingly report that a free month of service would
be the best motivator for trial. Finally, younger shoppers and
shoppers with higher incomes have a higher propensity to use
online/digital video content.
- Big opportunity for cable to promote on-demand value
packages for basic cable subscribers. The report shows
that basic cable subscribers are growing and paying monthly fees
for streaming while also consuming on-demand product. (Versus
paying for a premium cable package.) This reveals a good
opportunity for cable providers: bundle paid on-demand offerings,
versus selling individually, to take back share from streaming
services.
- Top music streaming services: Half of consumers report
using Pandora for streaming music services, followed by iTunes
(35%), Spotify (18%), SiriusXM (16%) and others. A prepaid card is
also the most favored incentive for signing up for services in this
category, with 60% of shoppers selecting a $10 prepaid card reward as the best motivator for
purchase.
- Grocery and consumer goods delivery a burgeoning
subscription category: 16% of consumers now report using these
subscriptions. Customer profiles of shoppers who use these services
are provided in the report and include average spend in-store, age
and income. The top incentive for trying grocery delivery services
is free shipping (82% of shoppers prefer this option), which can be
earned through a post-purchase validated reward.
The complete "Super Subscribers," shopper study can be
downloaded in its entirety here. Blackhawk Engagement Solutions
will also host a free webinar to discuss these research findings
from 12-1PM CDT on Wednesday, June 17, more info here.
About Blackhawk Engagement Solutions
Blackhawk
Engagement Solutions is a leading global provider of customized
incentive and engagement solutions for consumer promotions and
recognition, employee rewards and indirect sales channel management
programs. Blackhawk Engagement Solutions is a strategic partner
with many of the world's leading brands and a thought leader that
provides game-changing engagement solutions. Through innovative
products, services and technology, Blackhawk Engagement Solutions
inspires actions that impact results. For more information, please
visit: www.bhengagement.com.
Blackhawk Engagement Solutions is a division of Blackhawk
Network, headquartered in Lewisville,
Texas
About Blackhawk Network
Blackhawk Network Holdings,
Inc. (NASDAQ: HAWK and HAWKB) is a leading prepaid and payments
global company, which supports the program management and
distribution of gift cards, prepaid telecom products and financial
service products in a number of different retail, digital and
incentive channels. Blackhawk's digital platform supports prepaid
across a network of digital distribution partners including
retailers, financial service providers, and mobile wallets. For
more information, please visit www.blackhawknetwork.com and
www.giftcardmall.com.
CONTACT:
Erin
Dolin
303-204-4819
erin@fletchergroupllc.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/shopper-research-blackhawk-engagement-solutions-reveals-best-motivators-for-top-subscription-services-300088206.html
SOURCE Blackhawk Engagement Solutions