Building Brand Loyalty in the Subscription Economy

Welcome to the subscription economy. The day might start with a morning Peloton ride with your go-to playlist on Spotify setting the pace. Maybe you’ll tuck into a meal kit from HelloFresh and later settle down to Netflix’s latest binge-worthy series. Gone are the days when subscriptions were limited to magazines and newspapers. Today, everything from curated beauty boxes to gourmet pet treats and software suites can be accessed on a recurring basis, fundamentally reshaping how we shop, consume media, and spend our free time. But with a single tap to end your membership, how do brands not only win subscribers, but keep them? Hear from Zappit on crafting a network of benefits that feels too good to lose, and discover how Element’s Golden Ticket campaign transforms routine deliveries into unexpected moments of delight, surprise and discovery. Get ready for the subscription revolution.

 

Building Brand Loyalty in the Subscription Economy

Welcome to the subscription economy. The day might start with a morning Peloton ride with your go-to playlist on Spotify setting the pace. Maybe you’ll tuck into a meal kit from HelloFresh and later settle down to Netflix’s latest binge-worthy series. Gone are the days when subscriptions were limited to magazines and newspapers. Today, everything from curated beauty boxes to gourmet pet treats and software suites can be accessed on a recurring basis, fundamentally reshaping how we shop, consume media, and spend our free time. But with a single tap to end your membership, how do brands not only win subscribers, but keep them? Hear from Zappit on crafting a network of benefits that feels too good to lose, and discover how Element’s Golden Ticket campaign transforms routine deliveries into unexpected moments of delight, surprise and discovery. Get ready for the subscription revolution.

Unpacking the Click-to-Cancel Era

Britain has become a nation of subscribers. By 2021, 81% of UK households had at least one subscription, with the market valued at £1.8 billion. In the past nine years, the subscription economy hasn’t just expanded, it’s multiplied sixfold, reshaping the way we consume. Netflix alone grew from just 4.2% household penetration in 2014 to nearly 25% by late 2023​, while Amazon Prime Video’s UK subscriber base jumped from 1.2 million in 2014 to about 13 million in 2023​.

Not long ago, we owned our entertainment—DVDs, CDs, and physical video games stacked high. Then came Netflix and Spotify, offering instant access to vast libraries for a small monthly fee. Suddenly, access replaced possession: why buy one song when you can stream thousands? Why own a box set when entire genres are at your fingertips? What started as a shift in media soon rippled across industries.

Meal kits eliminated the need for recipe planning and grocery runs—26% of UK consumers currently subscribe to food or beverage boxes. Beauty transformed too, with male grooming subscriptions growing 108% between 2017 and 2020, hitting a £42 million market. Fashion followed suit, with nearly a quarter of Brits subscribing to clothing boxes in 2020. Even travel has jumped aboard, with 45% of UK adults interested in a travel-related subscription service.

The transition from ownership to access has rewritten the rules of retail, with businesses taking note—67% of UK retailers now plan to launch their own subscription services. But as inflation squeezes household budgets, the real challenge isn’t just attracting customers, it’s keeping them. Consumers can subscribe in seconds, but they can unsubscribe just as fast. For brands, retention is now the real battle.

“The key question isn’t just ‘Why should a customer stay?’ but ‘What are they gaining that they can’t afford to lose?”

Tim Rosenberg, Marketing Director, Zappit 

The rapid growth of the subscription economy highlights a fundamental shift in consumer expectations—people now demand convenience, personalisation, and increasingly, cross-brand value. “Consumers no longer view loyalty in isolation,” says Zappit, a UK-based company specialising in digital couponing and cashback technologies. “Being loyal to just one brand feels restrictive when loyalty can unlock a network of interconnected benefits.” To address this shift, they recommend building a network of reasons to stay, making unsubscribing feel like walking away from valuable benefits you use every day. Digital couponing plays a key role in this strategy, creating interconnected brand ecosystems—such as a fitness subscription offering grocery discounts or a meal kit service providing savings on cooking essentials. The future of loyalty lies in dynamic, multi-brand engagement, where a single membership unlocks a network of benefits.​

“The brands that thrive in this space are those that leverage partnership incentives, whether through co-branded rewards, bundled subscriptions, or interoperable benefits that integrate seamlessly into everyday life.”

Tim Rosenberg, Marketing Director, Zappit 

Unpacking the Click-to-Cancel Era

Britain has become a nation of subscribers. By 2021, 81% of UK households had at least one subscription, with the market valued at £1.8 billion. In the past nine years, the subscription economy hasn’t just expanded, it’s multiplied sixfold, reshaping the way we consume. Netflix alone grew from just 4.2% household penetration in 2014 to nearly 25% by late 2023​, while Amazon Prime Video’s UK subscriber base jumped from 1.2 million in 2014 to about 13 million in 2023​.

Not long ago, we owned our entertainment—DVDs, CDs, and physical video games stacked high. Then came Netflix and Spotify, offering instant access to vast libraries for a small monthly fee. Suddenly, access replaced possession: why buy one song when you can stream thousands? Why own a box set when entire genres are at your fingertips? What started as a shift in media soon rippled across industries.

Meal kits eliminated the need for recipe planning and grocery runs—26% of UK consumers currently subscribe to food or beverage boxes. Beauty transformed too, with male grooming subscriptions growing 108% between 2017 and 2020, hitting a £42 million market. Fashion followed suit, with nearly a quarter of Brits subscribing to clothing boxes in 2020. Even travel has jumped aboard, with 45% of UK adults interested in a travel-related subscription service.

The transition from ownership to access has rewritten the rules of retail, with businesses taking note—67% of UK retailers now plan to launch their own subscription services. But as inflation squeezes household budgets, the real challenge isn’t just attracting customers, it’s keeping them. Consumers can subscribe in seconds, but they can unsubscribe just as fast. For brands, retention is now the real battle.

“The key question isn’t just ‘Why should a customer stay?’ but ‘What are they gaining that they can’t afford to lose?”

Tim Rosenberg, Marketing Director, Zappit 

The rapid growth of the subscription economy highlights a fundamental shift in consumer expectations—people now demand convenience, personalisation, and increasingly, cross-brand value. “Consumers no longer view loyalty in isolation,” says Zappit, a UK-based company specialising in digital couponing and cashback technologies. “Being loyal to just one brand feels restrictive when loyalty can unlock a network of interconnected benefits.” To address this shift, they recommend building a network of reasons to stay, making unsubscribing feel like walking away from valuable benefits you use every day. Digital couponing plays a key role in this strategy, creating interconnected brand ecosystems—such as a fitness subscription offering grocery discounts or a meal kit service providing savings on cooking essentials. The future of loyalty lies in dynamic, multi-brand engagement, where a single membership unlocks a network of benefits.​

“The brands that thrive in this space are those that leverage partnership incentives, whether through co-branded rewards, bundled subscriptions, or interoperable benefits that integrate seamlessly into everyday life.”

Tim Rosenberg, Marketing Director, Zappit

Loyalty Through Delight, Surprise & Discovery

While ecosystems and everyday relevance are essential, emotion remains a core driver of loyalty. For Element, a specialist prize and incentive agency, the most powerful loyalty moments are often the unexpected ones. In their recent Golden Ticket promotion with meal-kit brand Gousto, Element transformed a routine recipe delivery into a moment of surprise, delight, and discovery. Inside their regular boxes, lucky Gousto customers found golden tickets confirming them as prize winners—unlocking rewards such as free meal kits, one-month subscriptions, holidays, weekend breaks, cinema memberships, and cultural experiences.

“By offering rewards outside of Gousto’s own ecosystem, while still maintaining a strong link to their message and proposition, the Golden Ticket promotion reinforced the brand’s ability to offer excitement and discovery to its customers.”

Chris Pearson, Client Services Director, Element

What made the campaign stand out was the careful selection of prizes that echoed Gousto’s broader message. International destinations like Mexico, Greece, New York, and Vietnam were tied to recipe themes, while cinema rewards and Royal Albert Hall experiences aligned with Gousto’s ‘Steal the Show’ advertising campaign. This campaign reinforces that great loyalty doesn’t always have to be transactional—it can be emotional, playful, and personal. And in a subscription world where unsubscribing is just a click away, these moments of unexpected joy can make all the difference.

“We’re always looking for ways to make rewards feel meaningful, not random. The most successful campaigns are those where the incentive is a natural fit for the brand narrative, reinforcing why the customer is there in the first place.”

Chris Pearson, Client Services Director, Element

Transparency in the Subscription Model

Personalisation, emotional connections, and multi-brand engagement are at the heart of effective retention strategies in 2025. By offering more than just a product or service—whether through digital couponing, surprise rewards, or cross-brand benefits—brands can create promotions that feel like an integral part of customers’ lives, making unsubscribing seem like a loss they can’t afford. However, as the subscription economy grows, so do the risks of “subscription traps”, where consumers are unknowingly signed up for recurring payments due to unclear terms or complicated opt-out processes. The ASA (Advertising Standards Authority) has made it clear that such practices undermine consumer confidence and can run the risk of regulatory action. By building loyalty on a foundation of transparency, brands can build lasting relationships, protect their reputation, and continue to evolve with the subscription economy, ensuring that subscribers feel valued, informed, and loyal for years to come.

Building Loyalty in the Subscription Economy

8 May 2025|Comments Off on Building Loyalty in the Subscription Economy

Dive into the subscription revolution with Zappit and Element to discover how brands can build lasting loyalty in a click-to-cancel era.

IPM Awards 2025 Entries Now Open!

5 March 2025|Comments Off on IPM Awards 2025 Entries Now Open!

Do you have an outstanding campaign capable of winning a coveted IPM Award? Showcase your creativity, innovation, and results by entering the 2025 IPM Awards.

Loyalty Through Delight, Surprise & Discovery

While ecosystems and everyday relevance are essential, emotion remains a core driver of loyalty. For Element, a specialist prize and incentive agency, the most powerful loyalty moments are often the unexpected ones. In their recent Golden Ticket promotion with meal-kit brand Gousto, Element transformed a routine recipe delivery into a moment of surprise, delight, and discovery. Inside their regular boxes, lucky Gousto customers found golden tickets confirming them as prize winners—unlocking rewards such as free meal kits, one-month subscriptions, holidays, weekend breaks, cinema memberships, and cultural experiences.

By offering rewards outside of Gousto’s own ecosystem, while still maintaining a strong link to their message and proposition, the Golden Ticket promotion reinforced the brand’s ability to offer excitement and discovery to its customers.
Chris Pearson, Client Services Director, Element

What made the campaign stand out was the careful selection of prizes that echoed Gousto’s broader message. International destinations like Mexico, Greece, New York, and Vietnam were tied to recipe themes, while cinema rewards and Royal Albert Hall experiences aligned with Gousto’s ‘Steal the Show’ advertising campaign. This campaign reinforces that great loyalty doesn’t always have to be transactional—it can be emotional, playful, and personal. And in a subscription world where unsubscribing is just a click away, these moments of unexpected joy can make all the difference.

“We’re always looking for ways to make rewards feel meaningful, not random. The most successful campaigns are those where the incentive is a natural fit for the brand narrative, reinforcing why the customer is there in the first place.

Chris Pearson, Client Services Director, Element

Transparency in the Subscription Model

Personalisation, emotional connections, and multi-brand engagement are at the heart of effective retention strategies in 2025. By offering more than just a product or service—whether through digital couponing, surprise rewards, or cross-brand benefits—brands can create promotions that feel like an integral part of customers’ lives, making unsubscribing seem like a loss they can’t afford. However, as the subscription economy grows, so do the risks of “subscription traps”, where consumers are unknowingly signed up for recurring payments due to unclear terms or complicated opt-out processes. The ASA (Advertising Standards Authority) has made it clear that such practices undermine consumer confidence and can run the risk of regulatory action. By building loyalty on a foundation of transparency, brands can build lasting relationships, protect their reputation, and continue to evolve with the subscription economy, ensuring that subscribers feel valued, informed, and loyal for years to come.

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Building Loyalty in the Subscription Economy

8 May 2025|Comments Off on Building Loyalty in the Subscription Economy

Dive into the subscription revolution with Zappit and Element to discover how brands can build lasting loyalty in a click-to-cancel era.

IPM Awards 2025 Entries Now Open!

5 March 2025|Comments Off on IPM Awards 2025 Entries Now Open!

Do you have an outstanding campaign capable of winning a coveted IPM Award? Showcase your creativity, innovation, and results by entering the 2025 IPM Awards.