It is critical for marketers to take into significant consideration the way in which millennials buy products and put money into subscription services in an attempt to grow along with market changes. Fosina Marketing Group, a digital marketing services agency that focuses on “digital direct to consumer marketing”, notes the growing trend of millennials favoring subscription services in a variety of product areas. With each passing year this audience shows a demonstrable preference to monthly payment models offer in terms of freedom, convenience, and flexibility for everything from television programming and music, to food delivery and clothing. This change in buying patterns is leading to many marketers to investigate new ways to package their products and services in order to satisfy the need of this important segment and their changing preferences.
According to the subscription based billing company Zuora, many have decided to switch to subscription based services solely because of the convenience factor. Tien Tzuo, CEO of Zuora, addressed this trend during an interview with Forbes. “Over the past few years we’ve seen a seismic shift in growth strategies for business brought about by a growing preference on the part of both businesses and consumers to subscribe to services, rather than buy products.” Tzuo went on to point out some of the biggest attractions to these services. “Companies are allowing their customers the adaptability to either pay as they go, or pay per subscription monthly, or via a long-term contract. The point is to have flexibility.” Millennials continue to demonstrate their preference for access rather than ownership, The vast majority of subscription services do not require an upfront financial commitment. The feature that allows customers the capability to instantly leave these programs for a “better offer” is seen as a comfort & benefit. Marketers have realized that there is a great need and focus to provide real time product & inventory that is competitively priced.