The Impact of Subscription Inattention

Many Americans are unaware of the total costs associated with their subscription services, often forgetting about them entirely. A survey indicated that the average American estimated their monthly subscription costs at $62, while the actual figure was much higher, at $273. This discrepancy largely stems from 'subscriber inattention,' where individuals fail to actively manage or even remember their subscriptions. A study involving millions of transactions revealed that subscriptions see a sharp decline in retention rates during periods when credit cards are replaced, highlighting how easily people can lose track of their ongoing commitments.