Will subscription services dominate the retail shopping experience? Q&A with Rebecca Wang

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The COVID-19 crisis quickly altered consumers’ lifestyles and spending habits. Sheltering in place led consumers to rely heavily on delivery services and subscriptions for entertainment and essentials. The impact of these behavior changes may forever transform the retail market.

As Americans tripled their spending on subscriptions during the coronavirus pandemic, some credit cards stepped in by offering rewards and discounts for subscription services.

The drastic spike in subscription spending may indicate a shift in the way consumers will experience retail shopping post-pandemic.

For example, consumers are already adapting to contactless cards as a preferred method of payment. On the other hand, there is research that supports the desire to return to pre-pandemic habits; more than 1 in 4 Americans said they look forward to sitting down in their favorite local restaurant again, according to a recent survey by CompareCards.

Still, retail stores see the convenience and value of a subscription model during a crisis and may consider adopting subscription services to reach new audiences.

To understand the impact subscription spending trends will have on retail, CompareCards turned to Rebecca Wang, assistant professor of marketing at Lehigh University. She has done substantial research on retail and consumer behavior, especially in the areas of digital and mobile channels, social media, and data-driven marketing.

She also contributed to numerous publications, including Journal of Consumer Research, Journal of Retailing, Journal of Interactive Marketing and Computers in Human Behavior. CompareCards asked Wang about her outlook on changes retailers may consider making to their channels and deliveries.

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