Subscriptions Are Topping Consumer Gift Lists This Holiday Season – Here’s Why
Subscription management leader Chargebee reveals how subscription model businesses can take advantage of gift-giving this holiday season.
Google Trends analysis reveals the search term ‘subscription gift’ experienced a sharp peak every December for the past 5 years, showing a clear shift in how consumers think about gifting over the holidays as they make more personalized investments for their loved ones.
The seasonal trend is a predictable pattern for subscription businesses that can be used to boost sales during peak gifting season.
Subscriptions are a popular gift because they’re incredibly flexible and the vast number of options means there’s bound to be something that suits all interests. Plus, consumers avoid crowded shops and purchase the gift that keeps on giving in just a few simple clicks.
Christmas subscriptions elevate your business
Subscription gifting is a great avenue for businesses. Adobe Analytics predicts that online sales will rise by 33% this Christmas generating a record $189 billion, packing two years of eCommerce growth into one year.
For businesses, subscription gifting over the festive period is a great way of attracting new customers who may never have signed up previously. Building that long-term relationship means you can gain a loyal customer (increasing your customer’s lifetime value) and by the time Christmas comes back around, they may repay the sentiment and gift a subscription to someone they know, and the chain continues to grow.
Why subscription models are great for businesses:
Increased contact with consumers to build their trust and engagement.
A chance to develop long-term relationships.
Predictable revenue and improved forecasting.
Sanjay Manchanda, Chargebee’s Chief Marketing Officer describes why subscription businesses should target holiday gifting but also keep customer retention at the heart of marketing efforts:
“We observe the subscription gifting trend peaks on the lead-up to Christmas, showing that the holidays (and corresponding holiday sales) should be a focus period for subscription businesses hoping to attract new customers this winter.
“The holiday season is an opportunity to maximise the growth potential across most direct-to-consumer markets, especially those operating a small or medium-sized subscription model given the consistent annual trend for subscription gifting.
“That said, we’re also warning subscription businesses to beware of getting caught up in the holiday sales and neglecting the ultimate long-term growth goal – customer retention.
“Following the holiday season, we advise diverting marketing efforts to retaining these new customers and cementing your growth. Loyal customers are repeat customers, and they are thought to spend 67% more than new subscribers.
“Churn following the holiday season is natural, but you can mitigate the loss by monitoring retention insights and learning about why a customer decides to cancel their subscription with your business. Customer retention platforms can support your retention strategy through automating tailored loss aversions (for example, offering an additional free month) and provide a clear reporting overview of cancellations, saves, and at-risk customers.”
2022s best subscription gift ideas, according to Chargebee
Magazine subscriptions: A magazine subscription is a special gift that can work for adults of all ages as well as children. Whether you gift a monthly beauty magazine or choose a publication related to someone’s interests such as cars or crafts, this is one solid choice that everyone will love!
Beauty box subscriptions: Beauty box subscriptions are the ideal gift for makeup lovers or for someone who deserves a little pampering. Skincare, makeup, or grooming kits offer a selection of products to try each month from a range of brands.
Food & Drink subscriptions: If you know a big foodie then food and drink subscriptions are the perfect options. There are plenty of options to choose from including meal kits, monthly snack boxes, baking boxes, or a range of alcohol such as wine or gin subscriptions.
Music subscriptions: For music lovers, a music-based subscription offers something a little different and a chance to discover new music. Vinyl record boxes are a great way of adding to someone’s collection while subscribing someone to a popular music streaming service can also be a simple but well-appreciated gift.
Craft subscriptions: Keen crafters may enjoy a craft subscription that provides them with a new project every month. From knitting to crocheting and sewing both adults and children can enjoy fun crafty activities delivered straight to their door.
TV & Movie streaming subscriptions: Streaming services will almost always go down a treat and could be an ideal festive gift for students or simply anyone who enjoys a good boxset or discovering new movies.