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New Zuora Data Reveals Subscriber Demand for Flexibility and Value, with Pricing Models and Packages Tailored to Consumption Habits

By: Zuora, Inc. via Business Wire

July 30, 2024 at 09:00 AM EDT

Zuora, Inc. (NYSE: ZUO), a leading monetization suite for modern business, today released the findings of its Understanding the Modern Subscriber study, which found consumers, particularly younger generations, seek flexibility to shape their payment options around their specific needs and unique consumption habits.

Today’s consumers are increasingly discerning, looking for options that align with their individual buying preferences and usage patterns. The Subscribed Institute at Zuora® commissioned The Harris Poll to conduct a study in May 2024 among more than 2,000 U.S. adults to shed light on consumer habits and preferences tied to how they’re using recurring products and services, such as subscriptions. The findings reveal that the modern consumer seeks flexibility in pricing and convenience, uncovering opportunities for businesses to embrace personalization and value to foster stronger customer relationships, and ultimately, reduce churn.

Key findings from Understanding the Modern Subscriber include:

Flexibility is paramount: 80% of respondents said that flexibility in how they buy and pay for recurring products and services was either important, very important or absolutely essential. And when asked about pricing model preferences, across generations, consumers expressed interest in a variety of options.
Usage-based pricing is an important tool, and critical for certain product categories: Preference for usage increases for certain product categories, with the highest interest in usage for travel (62%), food/restaurant delivery (60%) and retail (58%) services. For recurring products and services as a whole, 22% of all respondents said usage pricing is a preferred method, with even higher interest from Gen Z (32%).
Cost often drives interest in tailored offerings: Consumer choices are heavily influenced by cost, with 48% of respondents preferring bundles for better value and 30% choosing à la carte offerings when cheaper than a bundle. This value-driven preference for bundles is stronger in older generations (58% of Boomers/Seniors, 52% of Gen X) compared to younger ones (43% of Millennials, 35% of Gen Z). While cost is king, personalization also plays a role, with 23% overall (and 29% of Boomers/Seniors) favoring à la carte when they only want parts of the offering.
Subscribers like to come and go as they please: 36% of respondents have canceled and rejoined the same service within a year, while 57% of respondents said that they have subscribed to a streaming service specifically to watch a certain series or event, and then unsubscribed afterwards. Additionally, 78% of respondents said they would be interested in the option to temporarily pause a recurring service, as opposed to canceling.
Affordability and convenience matter: The top three benefits of subscription services overall are affordability (51%), value for money (37%) and convenience (32%).

“Acquiring and retaining subscribers have always been about providing ongoing value, but businesses need to diversify their offerings to meet the strong desire for flexibility in today’s landscape,” said Amy Konary, Senior Vice President and Founder of the Subscribed Institute at Zuora. “By tailoring to ever-evolving consumer preferences, recurring revenue businesses can foster stronger customer relationships to unlock new avenues for growth and long-term success.”

To read the full study, visit here.

About Zuora, Inc.

Zuora provides a leading monetization suite to build, run and grow a modern business through a dynamic mix of usage-based models, subscription bundles and everything in between. From pricing and packaging, to billing, payments and revenue accounting, Zuora’s flexible, modular software platform is designed to help companies evolve monetization strategies with customer demand. More than 1,000 customers around the world, including BMC Software, Box, Caterpillar, General Motors, The New York Times, Schneider Electric and Zoom use Zuora’s leading combination of technology and expertise to turn recurring relationships and recurring revenue into recurring growth. Zuora is headquartered in Silicon Valley with offices in the Americas, EMEA and APAC. To learn more, please visit zuora.com.

Forward-Looking Statements

This press release may be deemed to contain forward-looking statements. Words such as "plan," “expect” and "will" and variations of such words and similar expressions are intended to identify forward-looking statements. Such forward-looking statements involve risks and uncertainties. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release.

Information on these risks and additional risks and uncertainties that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release is included under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended January 31, 2024 and the Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2024, which is available on the “Investors” page of our website at https://investor.zuora.com and on the U.S. Securities and Exchange Commission’s website at www.sec.gov. Additional information will also be set forth in other documents that we may file from time to time with the Securities and Exchange Commission. All forward-looking statements contained herein are based on information available to us as of the date hereof. Except to the extent required by law, we do not assume any obligation to update these statements as a result of new information, future events, or otherwise.

© 2024 Zuora, Inc. All Rights Reserved. Third party trademarks mentioned above are owned by their respective companies. Nothing in this press release should be construed to the contrary, or as an approval, endorsement or sponsorship by any third parties of Zuora, Inc. or any aspect of this press release.

SOURCE: ZUORA, INC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240730104823/en/

Contacts

Media Contact:

Margaret Juhnke

press@zuora.com

619-609-3919

Investor Relations Contact:

Luana Wolk

investorrelations@zuora.com

650-419-1377

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New Zuora Data Reveals Subscriber Demand for Flexibility and Value, with Pricing Models and Packages Tailored to Consumption Habits

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