Gen Z Consumers Are Subscription Boxes’ Biggest Fans

As retail subscriptions woo consumers of all ages, PYMNTS Intelligence reveals that, for providers that follow the surprise box model, Generation Z is the most likely to get on board.

By the Numbers

The PYMNTS Intelligence report “The Impact of Subscription Models on Consumer Choice,” which draws from a survey of more than 2,100 U.S. consumers, reveals that younger consumers are significantly more likely to seek out surprise subscription boxes.

The study found that 21% of Gen Z consumers prefer the box model of subscriptions, more than twice the 10% share of baby boomers and seniors who said the same, and well above the 14% of Gen X, 12% of bridge millennials and 13% of millennials who prefer this model.

Overall, the study revealed, 40% of retail subscribers hold at least one subscription of this kind.

The Data in Context

The surprise box model enables merchants to have control over their offerings while harnessing that element of delight to keep consumers coming back. In a conversation with PYMNTS’ Karen Webster, Juan Palacio, founder and CEO at flower subscription service BloomsyBox.com, explained why the company stopped letting consumers decide what would come in their boxes.

“That opened Pandora’s Box for us. It was really difficult,” Palacio said. “People started asking for stuff that was really hard to get, etc., so we decided to close that door. It hasn’t worked and I don’t think it’s going to work given the nature of our product.”

Yet, while the box model has its advantages, the space is highly competitive.

“Customer acquisition has just continued to get more and more competitive over time,” Allison Vigil, president of Rocksbox, a monthly subscription service that rents jewelry to customers with an option to buy, told PYMNTS in an interview. “As that acquisition has gotten more challenging, it’s become even more important to retain the customers that we’re working so hard to find.”