As the holiday season approaches, a new trend is taking center stage: subscription gift-giving.
According to Recurly’s latest consumer report, “Unwrap the Subscriptions: 2023 Holiday Trends,” younger consumers are leading the charge in embracing subscription-based gifts as a thoughtful and budget-friendly way to celebrate the season.
This trend sets the stage for smart brands to increase their subscription revenue, and turn one-time gift recipients into lifelong customers .
The survey, which engaged 1,000 U.S. adults, brought to light some compelling statistics that should pique the interest of brands looking to boost their subscription revenue. Across all age groups, a whopping 81% of respondents acknowledged that the current economic landscape would influence their approach to holiday gift-giving.A remarkable 67% of respondents expressed a strong interest in giving gift subscriptions during this holiday season. Notably, Millennials and Gen Z respondents were at the forefront of this surge, with 73% of Millennials and 70% of Gen Z participants expressing their interest in gifting subscriptions.
However, amidst this economic belt-tightening, there’s a growing fondness for gift subscriptions. A remarkable 67% of respondents expressed a strong interest in giving gift subscriptions during this holiday season. Notably, Millennials and Gen Z respondents were at the forefront of this surge, with 73% of Millennials and 70% of Gen Z participants expressing their interest in gifting subscriptions.
The shift towards gift subscriptions is particularly pronounced among those most affected by economic uncertainties. Among the 46% of respondents who believed that the economy would significantly impact their holiday gift-giving, 37% were “definitely” interested in giving subscriptions, compared to 27% of respondents overall.
What’s more, the survey found that 73% of all respondents were willing to pay up to $100 for a gift subscription, and another 34% were willing to pay between $50 and $100.Theresa McEndree, CMO at Recurly, summed up the findings, “While this holiday season may see more cautious spending, the spirit of finding that perfect gift remains unchanged.
Theresa McEndree, CMO at Recurly, summed up the findings, “While this holiday season may see more cautious spending, the spirit of finding that perfect gift remains unchanged. Subscriptions have emerged as a way to provide meaningful experiences to fit tighter budgets. The rising interest in such gifts, both from givers and recipients, hints at a holiday season with fewer predictable presents and more thoughtful surprises.”
The big question for brands then becomes: how can you get customers to stick around once the initial subscription has ended?
Consider these findings:
- Affordability is key, with 41% of respondents favoring budget-friendly subscriptions for long-term commitment. Smart pricing strategies are vital.
- For 25% of subscribers, personal enjoyment and indulgence matter most. Subscriptions should bring joy and engagement.
- Convenience is a critical factor for 24% of subscribers. They seek subscriptions that seamlessly fit into their daily lives.
- To keep subscribers engaged, offer promotional prices, freebies, coupons, and shareable perks. Subscribers value rewards like lower prices and discounts.
- Subscribers are more likely to stick around when the subscription remains budget-friendly (23%) or introduces novel experiences (26%).
- Exclusivity appeals to 22% of subscribers, and they’re more likely to extend subscriptions for unique offerings. Creating an exclusive club feel can turn subscribers into loyal fans.
As consumers adapt to economic challenges, understanding their shifting preferences and motivations can be the key to unlocking increased subscription revenue far beyond the holiday season
