Subscriptions have become an essential part of all eCommerce businesses. Innovative brands are also offering subscriptions as a gifting option.
While gift subscriptions increase revenue, engagement, and brand value, setting up and managing gift subscriptions and regular subscriptions requires different setups, strategies, and approaches.
In this blog, we look at what you need to do differently for Shopify gift subscriptions and regular subscriptions for maximum ROI from both.
Let’s get started!
TL, DR: A sneak peek into the ideas in this article
- Multiple parties involved: Gift subscriptions require managing data for both the purchaser (billing) and recipient (shipping), while regular subscriptions involve only one person
- Payment structure: Gift subscriptions use one-time upfront payment for a set duration; regular subscriptions involve recurring billing cycles with stored payment information
- Lifecycle expectations: Gift recipients expect subscriptions to end naturally after the gifted period, while regular subscribers expect ongoing service until they actively cancel
- Setup requirements: Gift subscriptions need flexible delivery start dates, dual address management, personalized gift messaging, and separate notification systems for buyers and recipients
- Checkout optimization: Reduce friction with guest checkout, logical information collection steps, and clear communication that gifts don’t auto-renew
- Post-gift opportunities: Convert gift recipients into paying subscribers through timely campaigns, referral incentives, and personalized follow-ups based on their subscription experience
Key differences between Shopify gift subscriptions and regular subscriptions
Here are some of the key differences between regular subscriptions and gift subscriptions that you must know
| Factors | Gift subscriptions | Regular subscriptions |
| The parties involved | 2 people are involved, buyer and gift recipient Brands have to capture details of both the parties involved Collect billing details of the buyer Collect shipping details of the gift recipient Brands have to maintain different data streams for both the information to keep them separate The involvement of two people can make things complicated, for example, if there’s a customer support query | 1 buyer is involved Brands have to capture billing and shipping details of only one person, the buyers It is easy for brands to manage the information as it is only one person’s Things remain simple and straightforward as there is only one person involved |
| One time billing vs ongoing billing | Gift subscriptions operate on a one-time payment model for a predetermined duration. The gifter pays upfront for three, six months, or a year, with no further charges. The checkout process needs to clearly communicate that this is a single transaction, not the start of ongoing charges. The payment gateway integrations must handle one-time payments differently than recurring charges. The revenue recognition needs to account for prepaid services delivered over time. | Regular subscriptions involve recurring billing cycles with stored payment information.The checkout process is different as it is for ongoing charges. The payment gateway integrations must handle ongoing payments as regular subscriptions involve recurring charges. |
| Lifecycle expectations | Gift recipients expect the subscription to end naturally after the gifted period concludes. This has a different psychological contract and requires different communication strategies by the brand. Your subscription-gifting UX must clearly define the gift period, send appropriate notifications as it approaches completion, and handle the end-of-gift transition. Recipients shouldn’t feel trapped or confused when their gifted subscription concludes. | Regular subscribers expect ongoing service until they actively cancel. Brands have to send renewal reminders when the regular subscriptions are nearing end. Brands have to create different renewal strategies compared to gift subscription renewal strategies. |
Critical subscription gifting setup requirements
To successfully implement gift subscriptions, you require specific technical and operational configurations. Here are some set up requirements to factor in.
1. Flexibility delivery start dates
While regular subscriptions begin as soon as a customer subscribes, gift subscriptions often need to start on a specific date. For instance, on a birthdate, anniversary date, etc. Your Shopify gift subscription structure has to incorporate this basic need. The payment has to be processed on the date of purchase, but the subscription start date might be at a later date in the future.
Here are some features and functionalities you require in your Shopify store, to manage flexible delivery start dates.
- A feature that supports delayed fulfilment triggers
- A smart inventory management system that is capable of managing pre-scheduled orders
- Calendar integrations, data-picker interfaces at checkout
- Features that allow gifters to select delivery dates
- A Shopify system that is able to manage at scale, for example, during sales
2. Easy address and recipient management
Shopify gift subscriptions involve multiple addresses, for example, the buyer’s and the gift recipient’s. Your Shopify subscription set up must be designed to handle these multiple addresses. For example, the billing address is of the buyers and the delivery address is of the recipient’s. These should remain separate.
Here are some features you must consider having:
- Allow gift recipient to update their shipping address mid-subscription
- Create a separate recipient portal with limited access compared to regular subscribers
- Set up separate email messaging systems to the buyers and the recipients
- Order confirmation messages should go to the buyer and shipping notifications to the recipient
- Allow buyers to choose if the recipients should receive immediate notifications or keep the gift a surprise
3. Gift messaging and notifications
To offer a premium experience, include the option of sending Shopify gift subscriptions with personalized messages. Here are some things you must incorporate:
- Have a gift message field in the checkout flow
- The message should appear in recipient-facing communications
- Automate optimal notification timings for gift subscriptions
- Send purchase confirmation immediately to buyers
- Send messages to receivers based on whether the gift is a surprise
- Create relevant and thoughtful notification templates
UX & conversion considerations
The UX for gift subscriptions and regular subscriptions should be different. Here are some factors to consider.
1. Reducing friction at checkout
A complicated, long, or unclear checkout process can affect the sale of gift subscriptions. Here are some things to consider for your Shopify gift subscription checkout flow.
- Allow buyers to buy without creating an account as it can be a barrier to conversion. Allow guest checkout
- Collect details in logical steps. For instance, first the gift subscription duration, then recipient information, later, payment and buyer information
- Pre-fill default information. For example, if a buyer selects a Christmas gift option, default the delivery date to December 25
2. Make gifting feel intentional
Your Shopify gift subscription flow should feel different from regular subscriptions. Doing so can increase conversions, and enhance the buyer’s experience, making them feel like they’re buying something that’s designed for gifting.
Here are a few things you can do:
- Add visual elements related to gifting, such as icons – gift box, ribbons, etc.
- Offer customized of special duration options for gifting
- Bundle gift subscriptions with welcome kits
- Send extra products or premium packaging with the first delivery to make it feel like a special gift
3. Preventing accidental auto-renewals
Many subscriptions have the auto-renewal feature. But with gifting, you have to be careful and remove this feature. When setting up a Shopify gift subscription on your subscription app, do these things:
- Make it clear to customers that the gift subscriptions do not renew automatically
- Use clear communication and visual elements to convey this during checkout
- Instead of ‘subscribe now’, have a ‘send gift subscription’ option
- In the confirmation email, clearly mention it is a gift
- Mention whether or not the gift subscription has auto renewal
Post-gift retention opportunities
Once the gift subscription ends, it’s an opportunity for brands to convert recipients into subscribers. Here are some strategies for creating Shopify gift subscription flow post-gift completion.
1. Convert recipients into subscribers
People who received your subscriptions as a gift have used it for a while. So, when the subscription gets over, you can try to convert them into paying subscribers. Here’s what you can do:
- Track when gift subscription periods are reaching completion
- Create conversion campaigns to target gift recipients
- Start your email sequence much in advance, for instance, one month before the subscription end date
- Send many reminders to recipients
- Offer incentives to encourage them to become paid subscribers
- Reduce any psychological barriers by conducting a survey, talking to them personally, etc.
2. Loyalty and referral incentives
Another strategy to increase conversions via gifted subscriptions is to encourage recipients to share referrals. Here’s how to go about it.
- Offer incentives to the recipients to refer new potential subscribers
- Create a referral program strategy exclusively for these subscribers
- Offer incentives to both the original gifter, and the recipient for any referrals
- If the receiver converts to a paying subscriber, send a thank you note and discount code to the original buyer who’s your loyal customer
3. Follow-up after gift completion
Whether the gift subscription recipient converts or not, as a brand you must build a relationship with them even after the completion of the subscription. Here are some Shopify gift subscription flow ideas for follow-ups.
- Create a sequence of thoughtful messages to stay in their mind
- Send follow-up emails, such as new product launches, seasonal offers, sales, etc.
- Use data collected over their subscription period to craft personalized offers and promotions for future conversions
Launch a Shopify gift subscription for your store
Creating gift subscriptions alongside regular subscriptions can not only enhance your Shopify revenue, it can create more engagement opportunities, and make your brand stand out from the crowd.
For your subscription gifting setup, you will need a robust subscription app that can help you set up and manage both these types of subscriptions.
Appstle Subscriptions App is designed to help brands with automation, data collection and analysis, marketing and promotions, messaging and notifications, customized subscriptions, and more.
Install Appstle Subscriptions App in your Shopify store today!
