According to a new consumer report by Recurly, a staggering 67% of consumers have a strong interest in giving gift subscriptions during the 2023 holiday season. It’s a departure from conventional material gifts, signaling a shift in how consumers perceive and experience the joy of gift-giving.
Younger consumers, led by Gen Z and Millennials, are at the forefront of this revolution. As economic realities prompt consumers to tighten their belts, these generations are turning to subscriptions as a thoughtful, budget-friendly way to celebrate the season.
The good news for brands is that this trend is creating new opportunities for revenue generation that extend far beyond the holiday season.
Affordability Meets Enjoyment: The Core of Subscription Success
At the core of this shift is the fusion of affordability and the pursuit of personal indulgence and enjoyment. A whopping 41% of respondents consider affordability as a deciding factor for long-term subscription commitment. These findings underscore the importance of strategic pricing for brands that have a subscription revenue model.
Furthermore, 25% of subscribers are looking for personal enjoyment and engagement from their subscriptions. This finding makes it clear that subscriptions need to provide meaningful experiences for subscribers.
Tech-Powered Strategies for Ongoing Engagement
Once the gift-giving season ends and subscribers transition to their paid periods, tech-powered engagement strategies can be the bridge to converting one-time gift recipients into lifelong subscribers.
Savvy brands are using data-driven personalization to tailor subscription offerings to individual preferences, which in turn boosts customer satisfaction and drives higher conversion rates.
Streaming platforms like Netflix and Spotify are prime examples of data-driven personalization in action. These platforms collect data on user preferences, viewing or listening habits, and demographic information. With this data, they offer personalized content recommendations to each user.
Offering tailored experiences and recommendations that directly align with individual preferences and behaviors benefits both customers and businesses by delivering a more relevant, engaging, and ultimately profitable experience.
The shift towards subscription gift-giving is more than a passing trend; it’s a profound shift in how businesses approach customer engagement, gifting traditions, and revenue generation. By understanding data-backed insights and adopting tech-powered strategies, brands can unlock the revenue potential hidden within this emerging trend.
