Maximize Customer Acquisition & Revenue Generation with Gift Subscriptions

Gifting a present to someone can do more than just bring a smile on their face. Gifting a subscription to someone can make their whole month or year a good one.

The idea of gift subscriptions is gaining popularity because of the remarkable success it has brought for SaaS companies and businesses that are offering subscription boxes. Though the principle remains simple, the convenience it provides to your customers and clients is definitely appreciable.

Since almost every service and product is being offered by subscription businesses worldwide, the possibilities and options are endless to choose from. One can even think of gifting someone credits or coupons. Gifting subscriptions are interlinked with the performance of certain KPIs performance i.e. customer acquisition and customer retention rate. In this article, you will find the details that how gift subscriptions can help you cater to maximum customers and earn more revenue.

Gift Subscriptions and SaaS Industry:

Subscriptions are the inevitable future for the SaaS industry but as we progress to cutting-edge innovations and futuristic marketing trends, we can’t forget traditional strategies like referral marketing and its importance. And in the SaaS industry, referral marketing is best done using gift subscriptions that give users store credit to purchase a subscription or a product of their choice.

Offering your customers the option of gift subscriptions benefits in a way that you’re convincing your existing customers to refer your business to their peers.

You do not need to be a marketing expert to understand the basic fact that your existing customers are most likely to know more people who fit the buyer persona you’re aiming to onboard. Compared with trying to convert cold leads into loyal customers, gift subscriptions are ideal in terms of reducing CAC (customer acquisition cost) and increasing customer retention & revenue.

Here’s how:

Brand Awareness

With a subscription management platform that provides you with the feature of offering gift subscriptions, you can be sure that your existing customers are going to be on the lookout for anyone in the market for your services or product.

Apart from launching brand awareness campaigns that target new audiences worldwide, you can go for remarketing strategies and make the most of your existing customer base to spread the word around to like-minded customers. Several companies have used referral marketing to generate awareness and interest in their products/services by offering gifts.

Customer Acquisition

With all the news circling around of your SaaS being available for a cheaper price will eventually start giving you results. These results will be in the form of increased visits to your website, landing and social pages, and referrals looking to redeem the gift subscription they’ve received from their peers.

Compared with digital marketing costs of customer acquisition, rather than spending tons on marketing your product to non-interested customers, why not offer gift subscriptions that come with discounts that can be limited to the first month? Though this can discourage some new customers from subscribing, it will definitely ensure that your ARR remains consistent later on.

Depending upon your billing models and pricing strategies, you can customize a subscription management platform like SubscriptionFlow to accept recurring payments of any amount, from anywhere and at any time.

Since gift subscriptions can also be discounted plans offering the same or similar services, you can put up your offers and plans on platforms that advertise and enlist coupons and gift offer, providing you with a viable source for traffic and conversions.

Increased Revenue

Who doesn’t like adding more revenue streams to their existing business model? And with gift subscriptions, you’ll be doing just that. For instance, eLearning institutes can offer gift subscription options to their existing users who can buy discounted courses or subscriptions for their friends.

The fact that you can use a subscription management platform that features smart analytics means that you can easily find customers who are buying gifts for their friends and group them as loyal users who can be either rewarded or presented with more lucrative subscriptions plans in the future.

Not only will you be able to upsell and cross-sell your products and services to these customers, but you’ll also be able to push more offers on their dashboards and get them to bring in more customers. Examples of how services like Netflix, Grammarly and more have used the idea of gift subscriptions and coupons or cards are highly relevant for SaaS companies looking to scale and grow in 2022.

Reduced Churn

Lastly, it’s essential that you keep adding value to your existing customers’ bundles and packages to make sure that they don’t increase your churn rate. Retaining your subscribers becomes much easier when people know that loyalty is rewarded.

Offering the option to gift subscriptions to other people involves certain psychological aspects as well. It satisfies customers when they are offered something that makes them feel that they are making the best out of what they have spent to buy the subscriptions. And when the customer is satisfied, the chances of his staying onboard increase.

How SubscriptionFlow Facilitates Gift Subscriptions?

SubscriptionFlow is the best platform for subscription businesses because other than many amazing features, it also facilitates retailers and resellers to offer their customers the option to gift subscriptions to their dear ones. All that you need to do is to think about what to put inside the box and just market it to the right group of leads and customers. And rest can be managed from the subscription management platform of SubscriptionFlow from billing & invoicing to business analytics. When billing and payment of gift subscriptions are maintained through the automated platform, the flow of the revenue stream also streamlines.

If you want to plan gift subscriptions with the intention to increase your customer base and maintain the flow of the recurring revenue, then you need o to adopt SubscriptionFlow. From consultation to billing management, you will get everything.