Coupons have drastically declined, with around 50 billion sent in 2024, down from 330 billion in 2010, and less than 2% redeemed. In response, the subscription economy has rapidly grown, reaching $1.5 trillion in revenue due to consumer contracts that are difficult to escape. Companies frequently utilize free trials to hook customers, yet skilled consumers have found ways to exploit these offers, making the constant switching of subscriptions a strategic method to avoid unwanted payments. Vigilance is essential as cancellation processes can often be complicated.
The subscription economy has exploded in recent years, by one estimate growing by over 400% over the past decade. Companies love the idea of recurring revenue and sticky customer contracts that require some effort to escape.
One of the most popular methods of customer acquisition is free trials, which operate on the idea that a little taste of a service will persuade people to sign up fully, or maybe they'll just forget about it and keep paying anyway.
Robbie Kellman Baxter emphasizes that consumers need to be vigilant in navigating the world of subscriptions, as some companies make it intentionally difficult to cancel subscriptions.
Crafty consumers are constantly starting and stopping new free and discounted subscriptions as a way to navigate and beat the limitations of hard-to-cancel agreements.
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