Businesses risk losing paid subscribers amidst growing financial strains and shifting preferences towards flexible, value-driven models, according to Capterra’s Subscription Survey.

Amid escalating living costs and the FTC’s upcoming hearing on the proposed ‘Click to Cancel’ rule, a substantial number of consumers are already poised to cancel subscriptions in response to any further price increases. According to Capterra’s Subscription Survey, 38% of consumers say that if one of their current plans increased in price, they’d cancel their subscription outright, compared to a small minority that would be willing to shoulder costs.

Finding the right pricing will be a challenge for businesses across all industries. Over three-quarters (76%) of consumers report that financial pressures are leading to subscription burnout, a key topic likely to surface during the FTC’s hearing.

“Understanding why consumers cancel subscriptions and addressing burnout are key for businesses to thrive in today’s market while prioritizing customer needs,” says Max Lillard, senior finance analyst at Capterra. “Success hinges on closely monitoring shifting consumer preferences towards more flexible, cost-effective, and personalized subscription models.”

Nearly half of the consumers surveyed expressed willingness to switch to a lower-cost subscription tier should prices increase. Most respondents (80%) say they prefer tiered models that offer flexible pricing as opposed to flat-fee subscriptions, which highlights how offering various plans can help customers stretch their dollar and allow businesses to prevent customer churn in the midst of economic pressures.

The survey also highlights the impact of subscription fatigue on consumer behavior. An increasing number of users find managing multiple subscriptions cumbersome, with 45% citing this as a reason for cancellations. Furthermore, 47% question the value they receive for their subscription, indicating a gap between consumer expectations and perceived benefits.

Not every product lends itself well to a subscription model or tiered package. Capterra recommends keeping track of potential regulatory changes, gathering customer feedback, conducting a financial review, and assessing the flexibility of current offerings to see if changes are necessary.

To evaluate options for ecommerce subscription models, check out Capterra’s resources on subscription management and customer service software. For full survey findings, including the most-used subscription services, please visit Capterra.com.

About Capterra

Capterra is the #1 destination for organizations to find the right software and services. Our marketplace spans 100,000+ solutions across 900 categories, and offers access to over 2 million verified reviews—helping organizations save time, increase productivity and accelerate their growth.

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