Why the next generation favor subscriptions

Purchasing preferences are changing, there’s no doubt about that. We now have generations of buyers that have been brought up with subscriptions as an option in almost every area of their lives. Subscriptions have become the go to for younger generations because they’re more than just convenient – they’re empowering.

When you think of younger generations and subscriptions you probably think about B2C purchases like streaming services and food drops. While there’s definitely a big and growing market for that, where the potential really lies is in B2B. Younger generations who have grown up on subscriptions are already well established in the workplace and responsible for buying decisions in a business setting. You need to offer them what they want to stay competitive.

Signs of the times

Ownership, as a concept, has steadily become less and less important to younger people. In fact many are shunning one off purchases in many settings outside of subscriptions. For instance, many young people are rejecting the idea of buying a house because of the long term implication of debt, and the more commitment to a single place to live. While some of that is a market pressure around spiraling costs, there is a clear parallel – renting even mimics subscriptions in many ways.

Millennials and Gen Z have become accustomed to the immediacy of product and service delivery. In a world where you can buy anything and have it delivered the next day, that’s hardly surprising. But that expectation creates buying preferences, and shapes their view of what is acceptable in terms of lead times.

Also, going back to the idea of affordability and choice, young people believe that they should be in control of their finances and decision making. They want ways to access products and services that leave them in charge, and not in the hands of their provider. Again a clear allegiance with subscriptions forms because that’s precisely what they give consumers.

Owning things has for a long time been a status symbol. Having a big new house, or flashy car have, until quite recently, been lauded as examples that someone has been a success. Now though, young people are rejecting this idea in favor of making memories and having great experiences. Rather than seeking out assets to demonstrate wealth, they’re posting on social media about trips, communities, and ideas – the things that make them happy and enriched.

The logical conclusion

There’s no denying the reality of subscription popularity. Buying habits have evolved, as they always do, and as the next generations begin to become people in charge of businesses, we’ll see how those changes really impact how businesses do business.

What we do know is that getting a jump start on a subscription service is a great way to prepare. A subscription model can be applied to an existing one-off purchase in the form of bolt-on services, or if you have a broad portfolio of products or services you could have a standalone subscription option. There are plenty of options out there, you just need an expert to show you.