--- description: Subscription boxes have proven a popular business model for many years. Yet, what is it about this subscription business model that attracts consumers the most? image: https://gdm-localsites-assets-gfprod.imgix.net/images/software_advice/og_logo-55146305bbe7b450bea05c18e9be9c9a.png title: Tangible products prove popular with subscription customers --- # The subscription business model: Which products appeal to UK online shoppers? Canonical: https://www.softwareadvice.co.uk/blog/3114/subscription-business-model-most-popular-products Published on 30/09/2022 | Written by David Jani. ![The subscription business model: Which products appeal to UK online shoppers?](https://images.ctfassets.net/63bmaubptoky/Gxw3EMtEl9rQeXiho6YKhEQw62H05Rmb5kckQAogO9E/972c3931f3edb3f3f0b2f7606cf67be2/Subscription-based-business-model-UK-Software-Advice-Header.png) > The subscription business model allows customers to access many types of products or services, and there are many types of non-traditional subscription packages to choose from. Yet, when it comes to personal subscription management, consumers have demonstrated a clear preference. ----- ## Article Content The subscription business model allows customers to access many types of products or services, and there are many types of non-traditional subscription packages to choose from. Yet, when it comes to personal subscription management, consumers have demonstrated a clear preference.In this articleWhat types of subscriptions appeal most to UK online consumers?What products are UK subscribers receiving via subscription?How do British online shoppers engage with subscription providers?Are subscription models the right choice for businesses?Non-traditional subscriptions encompass a wide variety of different product types from boxes of beauty products to online language courses. Yet, it leads to questions of what kinds of services have had the most success at getting online shoppers onside. As we saw in our first look into subscription-based business models, online shoppers have clear expectations of what they will pay and how often they will pay for these services. Does this also mean there are clear trends for consumer preferences in the types of products or subscriptions available?  In this second report on the usage of subscription-based businesses, we have focused on the consumer preferences of our 1,011 survey participants. In doing so, we learned more about the types of non-traditional subscription services that UK online shoppers engage with.Our full methodology is available at the end of this article.What types of subscriptions appeal most to UK online consumers?There is no shortage of subscription business ideas that have made it into the UK marketplace. People can purchase regular deliveries of household goods such as food, hygiene products, and beauty and grooming items. Paid subscriptions to apps can also help with anything from looking after plants to learning the guitar. However, for the purposes of this analysis, we narrowed our focus down to a few broad options. We focused on subscription model examples such as product boxes, product replenishments, online app-based fitness/health services, and learning platforms. We will refer to these going forward as ‘non-traditional subscriptions’. When we asked non-traditional subscribers to name which of these four options they currently subscribe to, there was a clear leader. Product boxes, where users receive selections of items such as food products or beauty items, were ranked the highest by our participants. Only product boxes achieved a response rate of over 50%. In the cases of health and fitness platforms and learning platforms, there was less than half this response rate, with these options receiving just 24% and 18%, respectively.It was also interesting to note that the second most popular choice, product replenishments (42%), was similarly themed to product boxes, as both delivered physical goods to consumers. This seems to show that non-traditional subscription customers prefer tangible items rather than access to an online platform.What non-traditional subscription would non-users like to try?Whilst we’ve seen product boxes ranked highly with those currently subscribed to a non-traditional option, does the same level of interest exist amongst potential customers who have never subscribed as well?We sought to find this out by asking current non-traditional service subscribers and those who had never subscribed to a non-traditional option.  In this situation, the trend was slightly different. Whilst product boxes ranked highly with non-traditional subscribers (37%) and non-subscribers (36%), it never quite took the lead overall.Amongst non-traditional subscribers, an equal number (37%) also chose product replenishments as their desired choice. On the other hand, most people who had never subscribed to non-traditional options chose none of the above (42%). This suggests that whilst product boxes are very popular, they are part of a trend for consumers who value receiving tangible products and goods as part of a non-traditional subscription. This is reflected by the fact that product replenishments also generated high interest between non-traditional subscribers (37%) and non-subscribers to these services (23%).Yet, many in our sample were not satisfied with being limited to these four options. A third (33%) of non-traditional subscribers weren’t interested in taking out additional subscriptions from the four offers. Additionally, 42% of those who had never subscribed were not interested in these options either. It is unclear whether this indicates a lack of interest in non-traditional services or simply a lack of interest in the options presented. It nevertheless does seem to show a limitation of the subscription business model for non-traditional eCommerce entities offering these products. What products are UK subscribers receiving via subscription?As we’ve already seen, tangible services such as product boxes were commonly the most popular choice for people who subscribed to a non-traditional service and were well regarded by those who were not currently subscribed too.What is a subscription box?It is worth considering how a subscription business model functions in these situations. In the case of product boxes, a regular delivery of premium or niche products takes place, which is usually paid for on a weekly, monthly, or annual basis.Subscriptions to product boxes are not a recent phenomenon. Boxes of assorted products such as wine, food ingredients, and beauty products have been available via regular deliveries for many years. Nevertheless, the range of products available via a subscription has grown hugely, covering many niches such as fishing, shaving, and special items for pets.  Yet, before switching to an eCommerce-based subscription sales model, it is important for SMEs to know what kinds of products consumers are most comfortable receiving regularly. We looked at the preferences of our sample to discover the best items to offer using subscriptions.We observed a very strong preference for food items, which accounted for 74% of all responses. This far exceeded cosmetics, which were the next highest category and were chosen 58% of the time. Tips for SMEsAs product boxes are usually offered for specific, niche items, it is essential to understand a target audience when building a business. Knowing how big the available market share is can be a make-or-break decision for SMEs launching a product box service.Programs such as market research software and business intelligence tools can prove highly useful to companies considering entering a niche market. They can help identify the size of the audience, engagement levels, and essential details such as pricing before getting started.We discovered a similar story with replenishment subscriptions too. Again, consumables (such as coffee or cereal) were the most chosen product that our sample would be interested in having delivered.Yet, despite being the most popular choice overall, earning 44% of responses, consumable products had much more competition from other options. Resupplies of items such as cleaning products (41%) and bathroom items (40%) also enjoyed a similar level of favour.However, it’s important to remember that, unlike product boxes, replenishment supplies focus more on helping consumers restock essentials rather than providing randomised selections of luxuries. This most likely influences the focus on necessities rather than niche items.How do British online shoppers engage with subscription providers?Getting your product offering right is one thing. However, if a subscription business model is to be successful, discoverability is equally important. Choosing the right marketing strategy for a subscription business is crucial to gaining long-term subscribers. Therefore, companies need a clear understanding of how best to engage with their target consumers.We aimed to learn what strategies worked best by asking our sample of non-traditional subscribers how they discovered the services they use. Online advertising unsurprisingly proved the most effective method to reach potential customers. Over half of the sample (53%) said they typically discover these services via an online advert.Yet, a curious finding was that recommendations also factored highly amongst our respondents. 46% chose this answer, representing the second most popular choice overall.Making customer response count in your favourBusinesses need to focus just as heavily on reputation as their online advertising channels. After all, subscription models are strongly influenced by customer longevity. However, these two factors often align, as better engaged customers may subsequently prove the best brand ambassadors.Reputation management software can prove beneficial for this task by tracking customer responses to a service. This can help analyse user opinions to see if the product is hitting the right mark and to identify potential improvements. What deters online consumers from trying non-traditional subscriptions?Whilst there are many elements of non-traditional subscriptions that appeal to online shoppers, there are equally just as many that may deter them from trying this kind of eCommerce business model altogether.This was something we also looked at by asking participants who had never subscribed to a non-traditional service why they decided not to. We found that most of this group didn’t see them as necessary or disliked the commitment they required.Whilst we observed that non-traditional subscribers enjoyed choices that offered convenience, non-subscribers decided this wasn’t worth the additional cost. 39% said they preferred to buy their own products when they needed them rather than rely on a regular delivery. Additionally, 36% indicated they avoided subscriptions to avoid the ongoing commitment. As we saw in the first part of our study, fixed expenses could prove a major barrier to consumers buying a subscription. Again this is a factor that companies must assume will limit their customer base to a degree.Are subscription models the right choice for businesses?We gained important insights from our study into non-traditional subscriptions and how current subscribers and non-subscribers use and regard them.Physically delivered items such as product boxes appeal the most to customers.Food was nearly always the product that tempted consumers into getting delivery subscriptions. This was followed by cosmetics and toiletries.Delivery services are seen as a convenience rather than a need amongst consumers.This last point is an issue businesses must consider to attract the right customers to any startup product replenishment or box services. Many consumers simply do not wish to engage with this model. Therefore, SMEs should focus on conducting effective market research to ensure they can target the most receptive audience possible. Looking for subscription management software? Check out our catalogue. ## Disclaimer > MethodologyData for Software Advice’s Subscription Business Model 2022 survey was collected in August 2022. Results comprise responses from 1,011 UK participants. The criteria to be selected for this study are as follows:UK residentsAged 18 or olderShops online at least once per month or moreShown and understood the definition of a ‘non-traditional subscription’ ## About the author ### David Jani David is a Content Analyst for the UK, providing key insights into tech, software and business trends for SMEs. Cardiff University graduate. He loves traveling, cooking and F1. ## Related Articles - [How can SMEs approach measuring employee engagement?](https://www.softwareadvice.co.uk/blog/4167/measure-employee-engagement-in-an-sme) - [4 Best POS systems and their key features](https://www.softwareadvice.co.uk/blog/3071/point-of-sale-systems) - [HR tech: One-third of SMEs are looking for something new](https://www.softwareadvice.co.uk/blog/2260/hr-tech-smes-uk) - [Top 5 free accounting software for self-employed professionals](https://www.softwareadvice.co.uk/blog/3631/top-free-accounting-software) - [Employee monitoring tools: Managers are happy with them but recognise challenges](https://www.softwareadvice.co.uk/blog/3491/managers-employee-monitoring-software) ## Links - [View on SoftwareAdvice](https://www.softwareadvice.co.uk/blog/3114/subscription-business-model-most-popular-products) - [Blog](https://www.softwareadvice.co.uk/blog) - [Home](https://www.softwareadvice.co.uk/) ----- ## Structured Data