Giving the Gift of Snapchat+

What’s Up

In June 2022, Snapchat launched its paid subscription service Snapchat+, which costs $3.99 per month and provides users access to exclusive features like exclusive badges, story rewatch counts, Snapchat for Web, and more. Just before the holidays, three new features were introduced, with more ways to personalize experiences on the app. Subscribers can:

1. Change the camera capture button to a specific color or shape, like a heart or soccer ball.
2. Add custom backgrounds to chats with the new Chat wallpaper tool, using standard backgrounds available on Snapchat or images from the camera roll.
3. Gift a subscription to a friend using the new Gifting feature with a 12-month Snapchat+ subscription for $39.99.

What It Means

Social media has evolved to give consumers more of what they’re looking for online. Social search and social shopping deliver on consumer expectations around where they find information online and the level of personalization possible given how much we share on social media. As per CommerceNext and ComX Research’s Pitch-Perfect Personalization 2022 report, 66% of consumers said they prefer to buy from stores that know their preferences.

Another level of personalization that people are looking for has to do with virtual representations of self online. Snapchat’s new personalization features underscore consumer desire to create custom aesthetics, especially when considering avatars. GWI’s Connecting the Dots 2023 report shows that 34% of both Gen Z and Millennials said they are interested in creating avatars. Of those consumers, 76% of them say they are interested in customizing the physical appearance of their avatars.

Rising capabilities around customization on social media points to significant implications for retail brands that are exploring the metaverse. We’ve seen a wide variety of fashion and apparel brands like Nike, Gucci, H&M, and adidas launch metaverse collections. More uses for avatars and customizable elements on social media mean more opportunities for brands to develop products and services for these digital inhabitants of online worlds.

Access subscriptions — like streaming video on-demand (SVOD) services — are more often bundled with other membership packages to add value. Walmart+ gave members the added bonus of Paramount+ in September, Disney+ subscribers had exclusive access to merchandise in November, and in December, JetBlue announced a partnership with Peacock which gives passengers the chance to watch NBC’s SVOD content in-flight. Perhaps the next chapter of boosted benefits will see bundles starring social media subscriptions.