In an economic situation where customers are increasingly cutting discretionary subscription expenses, sending gift subscriptions to family and friends is gaining popularity.
Research suggests that 62% of shoppers are happy to spend $26 to $100 for gift subscriptions. This indicates that gifting is an opportunity for SVOD businesses to shape engagement, drive sales, and influence business profitability. The advantages of gifting for SVOD businesses are many.
How do gift subscriptions add value to SVOD providers?
Foremost, gift subscriptions act as a bridge between existing and potential customers.
With gifting, existing customers act as brand ambassadors and invite others to join your customer base. As a result, the new audience you attract is very well-targeted.
Moreover, since these individuals are chosen by their loved ones who know them well, odds are the recipients enjoy it and continue to subscribe once the gift expires. The result is an instant boost in sales and other favorable outcomes for broadcasters. These include:
- enhanced user acquisition
- boost in customer retention rates
- increase in customer lifetime value
- an opportunity to build a stronger sense of community with personalization
- audience growth by leveraging seasonal and promotional opportunities
- refined marketing with a solid data collection mechanism
Thus, making gifting a valuable element in your growth strategy is an excellent idea.
How can you take advantage of the digital gift-giving boom?
Cleeng makes it extremely simple to implement gifting subscriptions on your OTT platform.
Image: Behind the scenes of the Subscription offer set up in Cleeng's dashboard.
For the broadcaster
Setting up gifting on your platform is straightforward from the Cleeng Dashboard. Simply specify that the offer is “Purchasable as a gift” during your offer setup. This will automatically update the checkout flow for the gift receiver.
The built-in functionality makes it super easy for customers to buy a gift for their loved ones. This is possible even without any mandatory requirement for registration. They can also specify the delivery date. Based on this, the recipient shall receive an email with the gift code.
Image: Gift purchase flow for gift-givers
For gift receivers
It’s equally easy for recipients to redeem it in a single click. They can then log in to the Client application or create a new account to redeem the gift using the code.
Image: Gift redemption interface for recipients
It’s that simple!
The best part is that you can access detailed analytics if you set up gift subscriptions. There’s transparent reporting on gift purchases and redemptions. There’s an exportable table to efficiently store and organize gift-related data for easy reporting and analysis. You can conduct thorough testing and validation to ensure the accurate reflection of gift-related information. Moreover, there’s also a new, specialized dashboard for solely tracking and managing all gift-related activities in one place.
Want to leverage the gifting option for your OTT subscriptions?