By Karisse Hendrick, Editor-at-Large, CardNotPresent.com
Americans will spend an average of nearly $147 each on Valentine’s Day gifts this year, according to the National Retail Federation. And, while candy and flowers still top the list, curated sets of everything from makeup and food to gadgets to lingerie—many tailored to meet consumers’ specific tastes—are being purchased on a subscription basis as gifts and delivered monthly. Providing an original gift tailored to the receiver scores points for the giver when the gift is first given, and each month when the recipient opens a new package. The gift also keeps on giving for subscription merchants. Those who have learned to capitalize on this gift-giving phenomenon have experienced spikes in subscriptions around various holidays, and Valentine’s Day is no exception.
In a recent study, subscription-billing platform provider Recurly reported an 83 percent jump in same-store sales on Cyber Monday during the just-completed holiday shopping season. This increase equated to a 230 percent increase in total payment volume over the previous year.
“We have seen our subscription merchants targeting the right customers and offering gift-givers curated products and experiences, whether in physical goods or digital content, which leads to long lasting gifts for the consumers, and revenue for the merchants,” says Recurly CMO Frederick Felman.
Adapting subscriptions to gift giving
One such merchant that has learned to