Dose #126: BFCM Hot Topics - Offers, Cannibalization, and Gift Subscriptions

Matt here with your weekly Subscription Prescription 💊

Every year BFCM comes around and brands with strong subscription elements worry about how to aggressively acquire more subscribers without losing existing ones to the same offer. In this week’s dose, I dive into how you should approach offers for existing subscribers, how to prevent cannibalization, and how to get the most from the season with gift offers.

This week’s dose is also podcast episode, so listen on YouTube, Apple Podcast, or Spotify:

Quick Email Actions That Work

One of the coolest tools I’m leveraging for my clients right now is Zaymo. It allows me to make our emails even more powerful, creating revenue opportunities instead of leading to higher churn.

While most subscription platforms have ‘quick actions’ the subscriber still needs to login to the portal to add that one-time item or update their subscription.

With Zaymo, there’s no need for a login. It’s truly a one-click action. And this is how we’re using it across several brands right now:

1. Upsell prepaid subscriptions in the upcoming order notification email

2. One-click add-ons for one-time upsells in other email campaigns

3. Easy-to-adjust frequency options in the upcoming order notification email

All of these things either increase LTV by giving them something to purchase (easily) or increasing LTV by letting them adjust their frequency without having to see the portal.

Keep those actions inside the email, and subscribers away from the cancellation button, with Zaymo. They have a 30-day free trial you can use to check them out!

Plus, as a special bonus, for anyone that takes a demo with Zaymo I’m offering a free 30-minute strategy session. Hit reply and let me know if you’ve booked one.

BFCM Playbook: Offers, Cannibalization, and Gift Subscriptions

At a birthday party as a child, my friend had a pinata. After that fateful thwack, candy spilled all over the floor. While some kids grabbed candy only to stuff it into their bag, I aggressively shoveled whatever candy I could between my legs, thinking I’d put it into my bag later.

My friends saw it differently, however; once most of the candy was gone from the floor, they turned on me because the candy wasn’t safely in my bag. I had grabbed more candy than anyone, but ended up with the least because I didn’t safely put them away.

BFCM can feel like that pinata opening up. So many potentially new subscribers, but how can you grab as many as possible? How do you keep existing subscribers from jumping onto the new deal, lowering their profitability?

Each year I get three common questions around subscriptions, and that is the topic for this week’s dose. We’ll cover how to:

1. Craft Compelling Offers to drive new subscriptions.

2. Prevent the Cannibalization of your existing subscribers.

3. Leverage Gift Subscriptions to capture seasonal revenue.

1. Offers that Stand Out Without Breaking the Bank

When it comes to BFCM, the market is saturated with discounts. While it might be tempting to offer steep discounts (like 40-50% off) to attract subscribers, that’s not always the best move. Why? Because after the rush, many holiday subscribers churn when you revert to regular pricing. Instead of slashing prices too deep, think creatively:

• Bundle offers: Package multiple products together for a perceived higher value.

• Starter kits: Offer a curated set of items at a special price to introduce customers to your products.

• Prepaid subscriptions: Incentivize upfront commitment by offering 3- or 6-month prepaid subscriptions at a modest discount (great for anyone thinking long-term).

• Unique gifts: Offer a small, low-cost gift like a free product with every subscription purchase—something that doesn’t erode your margins but still feels special (or even try mystery gifts).

Take inspiration from brands like ButcherBox, which has offered subscribers lifetime perks (like free wings or a Thanksgiving turkey) during this time of year. These perks feel exclusive without being a pure race-to-the-bottom discount.

2. How to Handle Subscriber Cannibalization

One of the biggest concerns I hear from subscription businesses during BFCM is cannibalizing their own subscribers. Say you’ve got loyal subscribers enjoying a 20% discount year-round, and now you’re promoting a 40% BFCM deal. Naturally, some of those subscribers might cancel their existing plan to rejoin under the new offer.

I get it—this is frustrating. However, a few strategies can help mitigate the impact:

• Exclusive upsell offers: Before launching a deal to new subscribers, offer your existing customers something even more special. For example, while new subscribers get 40% off for three months, offer existing customers 60% off on an add-on product for one month.

• Pre-launch to existing subscribers: Your existing base is already warm, and you don’t have to spend on ads to reach them. Launch your BFCM specials to them first through email or directly in their subscription portal.

• Targeted retention offers: Use tools like Zaymo to make it incredibly easy for subscribers to upgrade, add products, or take advantage of exclusive discounts without leaving their email.

The goal here is to start by thinking of how you can extract more value from existing subscribers before determining the offers you’ll try to attract new ones. With this approach, you’ll ensure you have something special in store for your subscribers and a great offer for new ones.

At the end of the day, however, there is no guarantee that someone will cancel to take the newer offer. It may suck in the short-term, but the silver lining here is that you’ve got a loyal customer either way.

3. Unlock the Power of Gift Subscriptions

Lift subscriptions can be a goldmine during the holiday season. Though they might not always retain long-term customers, brands like Kitnip Box have reported that 20% of their BFCM sales come from gift subscriptions. It’s worth offering, even if retention rates are lower than typical subscriptions.

There are also new tools, like Givy.ai, that simplify the process. Givy lets the gift recipient input their payment information when the gift period ends, which helps convert them into a regular subscriber more seamlessly. While we’re still testing this, it’s promising, and I’m excited to see how it performs for the brands I work with.

If you’re selling anything that can be gifted—coffee, pet products, or consumables—don’t overlook the potential of gift subscriptions.

Key Takeaways for BFCM

As you gear up for Black Friday and Cyber Monday, remember these key strategies:

• Craft compelling offers that go beyond deep discounts—think bundles, gifts, and prepaid plans.

• Start with your existing subscribers, offering them deals before rolling out to new customers. This will help prevent cannibalization.

• Explore the potential of gift subscriptions to capture additional revenue during the holiday season.

And if you haven’t already, check out Zaymo—especially if you’re looking for an innovative way to boost engagement and increase value from your subscribers. They’re making it easier than ever to execute some of these strategies right from your emails.

That’s it for this week’s dose! Don’t forget to keep an eye on those numbers at all times. See you next Tuesday with dose #127!

 - Matt Holman 🩺

The Subscription Doc