How Many Unused Subscriptions Does Your Client Have?

Trending

Ever hear the expression: “Mid Century Modern?” It does just apply to furniture and home decoration anymore. Years ago, your parents got bills in the mail and put them in a folder. Once a month they would sit down, checkbook in hand and write out checks. They stamped and mailed them, confident the post office would deliver them promptly. So what does this have to do with subscriptions?

Not so long ago, the concept of automatic debiting was introduced. The local utility or your mortgage company would settle up with your bank once a month on date you chose. You and the check writing process was taken out of the equation.

This concept took off. Today charities, political causes, TV or online services, your gym and many others have moved to the subscription business model. “Your gift of just $19 a month…” became a great way to develop a steady revenue stream without needing to chase after people, encouraging them to renew. It has been said the average American pays $924/year in subscription services. (1) That might be the tip of the iceberg when you realize how many organizations encourage you to commit to a monthly payment plan.

Why is this important? Your client might not be saving or investing because they spend everything they earn. If you can help them reduce their spending, you can help them find money they could be saving.

How many does your client have? What do they cost? How many do they actually use?

  1. TV subscription services. Forbes indicated the Average American has 2.9 streaming services costing about $46/month. (2) Some might come through your cable company, others might be through your tablet. How many does your client have? Can they make a list? What are they costing? Have they accessed all of them recently? Which do they rarely use?
     

  2. Airline club memberships. Before the pandemic, many people did plenty of business travel. Paying for an airline club membership made sense. Post COVID 19 business travel has not returned to pre pandemic levels in terms of passenger volume, Your status with your airline might get you complimentary lounge access for international travel. Your airline club membership might renew automatically. Is your client using their airline club membership? Is it worth maintaining? Could buying day passes as needed be a better solution.
     

  3. Premium credit card memberships. Several credit card companies offer cards with plenty of benefits, yet charge a hefty annual fee. The American Express Platinum Card charges $695 as the annual membership fee plays $195 if you have an additional card, which you might have for your spouse. They have Centurion Clubs at many airports along with membership in the Priority Pass program, giving access to many other airline lounges. The Citi AAdvantage Executive Card costs $595/year and comes with Admirals Club access as a benefit. The cards usually renew automatically. Does your client make enough use of the card benefits to justify the cost?
     

  4. Exercise related subscriptions. During the pandemic lockdown, many people exercised at home. Subscriptions soared for video exercise classes. Returning to normal life, many people are back at the gym. Gym membership is often an automatic monthly debit. Many people also have health and fitness apps on their phones. These usually have monthly fees. Is your client using their exercise and fitness related apps? What are they paying?
     

  5. Charitable contributions. Many charities have moved to the monthly subscription model. They advertise often on TV. Their causes are noble, as are others in your area that do not advertise. Are the ones you have subscribed for your favorite charities? How are you supporting the ones most aligned with your interests?
     

  6. Political contributions. Have you made a one-time contribution or committed to ongoing contributions? Are you contributing to a political candidate or a political cause? Is this what you originally intended?
     

  7. Online subscriptions including social media. Social media has long been considered free, because the parent companies make their money through advertising revenue. Some have introduced tiered levels of service? Does your client know what they are paying?
     

  8. Wireless subscriptions. These are a fact of life. Often the purchase of your phone is tied into the price you pay on your phone plan. You keep paying until the cost of the phone has been covered. At this point the lock on your phone should end, unless you upgrade your phone with your provider. Has the lock on your client’s phone ended? Can they shop around for another provider with a lower monthly charge?
     

  9. Cable TV and Internet access. About 72 million Americans still have cable tv service. (3) According to PEW (4) it has been the most common way Americans connect to the internet at home. Is this what your client is using? Are they happy with the service? If not, do they have alternatives?
     

  10. Meal kit subscriptions. About 2% of the population use meal kit subscriptions, but that number is expected to increase. (5) Millennials and Gen Xers are primary audiences. (6) If your client subscribes, do they make full use of them? Are they delivering value for the cost?
     

  11. Newspaper or magazine online subscriptions. Research shows about 13% of Americans pay for a newspaper subscription (or two.) (7) Has your client subscribed to digital editions? Do they read them enough to justify the cost?
     

  12. The car wash. This is one of my favorites. In our area an (almost) completely automated car wash charges $13.95 for their monthly package of basic car washes. You can take your car through as often as you like! They offer more expensive packages with additional services too. You do your own vacuuming at one of many parking slots. The monthly cost is about 1.5 times the cost of a single car wash. Is your client using the service enough to justify the cost.
     

When you start to consider automatic debits your client has on their checking account or monthly charges to their credit cards, the list grows and grows. Helping clients reduce unnecessary expenses can free up funds that could be redirected towards saving and building wealth.

Related: How To Get Clients To Trust You

  1. https://finance.yahoo.com/news/average-consumer-pays-nearly-1-190009547.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACHUUGQKwhpRTmj6Ok8b80A46X6C7uOILxpONHjIcwPHO1mAUF5MK0dEUHJb5qj_XG3bmro4fTVlDEdFEMV2PV22KpItKGLwRMI4MPm1QoIXkWT-pEQ781o_AwVXVHJD1snKJzw5heUVeRjiqNc7B_PL8Pp-0TZB18P0pbcZNFct
  2. https://www.forbes.com/home-improvement/internet/streaming-stats/#:~:text=On%20average%2C%20Americans%20pay%20for,2.9%20streaming%20services%20each%20month.
  3. https://techreport.com/statistics/entertainment/cable-tv-statistics/#:~:text=Cable%20TV%20subscribers%20have%20reduced,to%20%24209.01%20billion%20by%202023.
  4. https://www.pewtrusts.org/en/research-and-analysis/fact-sheets/2022/07/how-do-americans-connect-to-the-internet
  5. https://www.statista.com/outlook/emo/online-food-delivery/grocery-delivery/meal-kit-delivery/united-states#:~:text=Meal%20Kit%20Delivery%20%2D%20United%20States&text=The%20number%20of%20users%20in,to%20be%20US%240.83k.
  6. https://eatfresh.tech/blog/meal-kit-marketing-targeting-key-demographics-for-growth/
  7. https://www.statista.com/statistics/1374834/paid-online-news-use-us-by-generation/#:~:text=A%202023%20survey%20revealed%20that,paying%20for%20one%20to%20two.