Survey: 63% considering gifting subscriptions
October 5, 2022
Subscription gifting is primed to soar for the holidays. According to a survey conducted by Recurly, a subscription management and billing platform, this holiday season will be big for businesses with gift subscriptions, with 63 per cent of consumers reporting they would consider giving subscriptions as a gift and 70 per cent interested in receiving subscriptions as a gift themselves. Gen Z (73 per cent) and Millennials (72 per cent) lead the charge with the majority saying they are interested in receiving subscriptions as gifts.
The top reasons consumers like receiving subscriptions as a gift are that it allows them to experience something new (60 per cent) and there are a variety of carefully-selected options to choose from (44 per cent).
“This holiday, consumers are looking for gifts of experience and utility, and that translates directly to a desire for subscriptions. As subscription brands begin holiday planning, optimising their gifting experience is key,” said Theresa McEndree, Chief Marketing Officer at Recurly. “Subscriptions as a gift allows consumers to try something new or dig deeper into something they already love. And, with the wide range of consumer subscription types, there is something perfect for everyone on their list – from the pet-lover to the gamer to the fashionista.”
Start Discounts Now
Recurly says that 22 per cent of consumers surveyed have already started their holiday shopping, and 40 per cent say they will begin their holiday shopping sometime in November. With consumers reporting that they plan to shop for discounts and deals, Recurly believes that businesses with subscription models should use this time to implement customised pricing models for both customer acquisition and retention to acquire subscribers and build loyalty over time.
Consider inspired bundles
Strategic pairings, such as a streaming media and popcorn-of-the-month subscription, a wine and cheese subscription, or workout membership and fitness box subscription, will be the most compelling offers, as surveyed consumers listed experiences (43 per cent), gift cards (42 per cent), and entertainment (36 per cent) as the top gifting categories people would like to receive.
The majority of consumers, from Generation Z (73 per cent) to Boomers (53 per cent), have an interest in receiving subscriptions as a gift, indicating the top three preferred categories of subscription gifts to receive as streaming video (40 per cent), retail (28 per cent) and streaming audio (27 per cent). Finally, as streaming video (54 per cent), gaming (39 per cent), and streaming audio (36 per cent) are the top three subscription categories most likely to be given as gifts, brands should consider mutually beneficial partnerships.
Understand your gift givers
More than half of those surveyed say the current economy will impact the way they give gifts this year, including spending less on gifts (64 per cent), giving gifts to fewer people (39 per cent), and shopping for more deals (35 per cent). Yet, consumers indicated that close family members (59 per cent), significant others (55 per cent), and friends (49 per cent) will receive the most gifts this year.
Consumers surveyed reported that the top three attributes of a “great gift” are thoughtful (75 per cent), useful (70 per cent), and practical (40 per cent), and subscriptions as gifts usually check all three. Specifically, the top reasons why people want to give subscriptions as a gift is because it’s easy to purchase (53 per cent), it fits into the budget/price they want to spend (45 per cent), and it’s easy to deliver (41 per cent). Businesses that can offer thoughtful and practical subscriptions that are easy to purchase and pay for will come out on top.
Leverage pricing and subscription lengths effectively
When thinking about pricing and promotions, consider that the majority surveyed (72 per cent) are looking to spend under $100 on a subscription service gift, and 34 per cent of consumers surveyed would sign-up for a 6-month subscription for their gift recipient.
From an acquisition perspective, most consumers surveyed report If they were to receive a subscription as a gift, they would continue the subscription once the gift period expired if they found the subscription fun, useful, or helpful (52 per cent).
“This is a powerful and unique opportunity for brands to scale, as businesses leverage gifted subscriptions as a tool for acquisition,” says McEndree.