Why Your Subscription Box Business Needs a Gifting Strategy (And How to Nail It)

If you're running a subscription box business in 2024 and you're not prioritizing your gifting strategy, you're leaving money on the table. Period.

At 100 Celsius, we've helped countless e-commerce brands scale their recurring revenue, and we've seen firsthand how a well-executed gifting strategy can be a game-changer. Here's the cold, hard truth: most subscription boxes make better gifts than personal purchases. Let's break down why this matters and how you can capitalize on it.

The Hard Truth About Subscription Boxes

Let's face it: most subscription boxes are non-essential. They're fun, novel, and exciting, but they're often the first thing to go when budgets get tight. This is especially true for younger demographics like Gen Z and Millennials, who are often the target market for these services.

But here's where it gets interesting: even in tough economic times, there's always a group with disposable income looking for thoughtful, cool gifts. Who are these potential gift-givers? Parents and grandparents.

Why Gifting Is Your Untapped Gold Mine

By focusing on gifting, you can:

1. Access a new customer segment with higher spending power
2. Increase your revenue, even during economic downturns
3. Introduce your brand to people who might not have discovered you otherwise

But here's the kicker: most subscription box companies are doing gifting all wrong.

The Right Way vs. The Wrong Way to Do Subscription Gifting

Many brands think slapping a "Give as a Gift" button on their website is enough. It's not. Here's why:

Most people don't want to sign up for a recurring charge on someone else's behalf. The thought of having to cancel the subscription down the line is often enough to make them choose a different gift altogether.

The Solution: Prepaid, Non-Renewing Gifts

Here's how to do it right:

1. Offer prepaid plans for a set number of shipments (usually 3, 6, or 12 boxes)
2. Make it a one-time order with no auto-renewal
3. Eliminate the need for cancellation

How to Implement a Killer Gifting Strategy

Here's your roadmap to gifting success:

1. Ditch Recurring Plans for Gifts: Set up 6 and 12-month prepaid options.
2. Make "Give as a Gift" Unmissable: Plaster it all over your website.
3. Educate Your Customers: Spell out exactly how the gifting process works.
4. Create a Custom Plan Selector: Guide users to the right gift option.
5. Push for Higher AOV: Make longer plans irresistibly valuable.
6. Capture Crucial Info: Get the recipient's email, a gift message, and their address at checkout.
7. Hammer Home the Address Point: Make it crystal clear that gifters need to input the recipient's address, not their own.

Email: Your Secret Weapon in Gifting

Don't drop the ball after the purchase. Create three essential emails:

1. A thank-you for self-purchasers
2. A thank-you for gifters
3. A heads-up for gift recipients

Customize each email to maximize impact. This isn't just nice-to-have; it's crucial for ensuring gift recipients understand and value your offering.

The Tech You Need to Make This Happen

To implement this strategy effectively, you need:

1. An e-commerce subscription app with native prepaid gifting support (e.g., Skio, Loop Subscriptions, Stay.ai, Awtomic, or ReCharge)
2. An email service provider like Klaviyo or Sendlane for custom workflows

The Bottom Line

A robust gifting strategy isn't just a nice addition to your subscription box business—it's essential for tapping into a lucrative market segment and boosting your revenue. It's not about adding a simple gift option; it's about creating a seamless, thoughtful experience that converts gift-givers and delights recipients.

If you're ready to unlock the full potential of subscription box gifting and watch those high-value gift orders roll in, it's time to overhaul your strategy. And if you need help implementing these changes, that's what we do at 100 Celsius. Let's talk.

‍