June 27, 2013
Retail TouchPoints: Can Social Gifting Help Retailers Boost Sales and Integrate Channels?
Through a special arrangement, presented here for discussion is a summary of a current article from the Retail TouchPoints website.
Retail industry experts predict that the immediacy of peer-to-peer gift giving will bring social gifting into the mainstream within the next year.
Social gifting allows consumers to send both free and fee-based digital gift cards to friends via social media, e-mail and even text messages. Digital gift cards are stored on the receiver’s mobile device for future redemption in-store or online.
Applications such as Boomerang, Facebook Gifts, Jifiti, Treater and Wrapp have helped turn the once manual gift card exchange process into a highly social and mobile experience. They also encourage collaboration among social connections; some apps allow friends and family to pool their money and then send a shared gift card to a recipient.
Social gifting also helps address a common pain point among many retailers: creating a seamless and consistent brand experience. Because digital gift cards purchased and shared via social gifting apps can be used both online and in-store, consumers have more options and flexibility in making their purchases across channels.
For example, Simon Malls is partnering with Jifiti to help cement the connection between brick-and-mortar stores and consumers’ mobile devices. Featuring a barcode scanner, the Jifiti app allows consumers to scan products, then add them to digital wish lists. Family and friends can access the wish lists and purchase specific items online. Once a gift is purchased, Jifiti users receive an in-app notification as well as a gift card number they use to obtain the in-store item.
To make the digital gifting experience even more compelling, retailers can work with business partners to "add incentives, free gifts and complementary items to attract more users to leverage the applications and send gifts," according to Leon Perera, CEO of Spire Research and Consulting.
An increasing number of retailers are testing social gifting applications and solutions to determine the impact on customer awareness, acquisition and retention. As more implementations take place, merchants will recognize the overall engagement value and opportunity of social gifting, according to Shaul Weisband, co-founder and CMO for Jifiti.
"Gifting is very emotional and thoughtful," Weisband said in an interview with Retail TouchPoints. "The key benefit of social gifting is the ability to share that experience with others — whether by involving them in the process itself through group gifting, or making them aware of the gifting experience by sharing messages or gifts through social networks."
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Recent Discussions
Discussion Questions
What advantages, if any, do digital gift cards hold over manual gift cards for consumers as well as retailers? Do you expect social gifting will emerge as a much larger driver of sales this coming holiday season?
Poll
It is truly the gift card for the Millennium generation and then for the rest of us. Social Media should be a part of every retailer’s omnichannel strategy effort going forward to be truly “omni.”
This will be huge—especially for Holiday 2013. We’ve seen that even virtual gifts have taken off, that is the digital “flower bouquets” and icons of gift boxes. Further, consumers have actually paid for those!
The social giving is perfect for graduation, weddings and baby showers, where many people are looking to give gifts to a recipient who may be hundreds of miles away.
Great stuff.
Much like digital coupons, digital gift cards are easier for both consumers and retailers to manage, so they are here to stay. The interesting twist is the social aspect, which lowers friction, making it even easier to send gifts to friends and family. Look for increased use during the upcoming holidays, for sure.
Digital gift cards are easier. In a wireless world, where we connect and communicate via multiple channels, the digital gift card is easy and convenient—and accepted by many to the point of having become normal or mainstream.
Once again, technology is making life simpler and easier. However, I predict that the same way a handwritten thank you note stands out over an emailed thank you, a manual gift card, personally delivered or mailed with a personal card, will stand out over the digital gift card.
This is absolutely the wave of the near present and future. While the ease of engaging in this process will be a plus for retailers and for givers, I agree with others who have expressed the sentiment that a hand-written card or gift carries perhaps more value, especially as it becomes more and more “rare” to receive.
“Convenience” is the key here, of course. For 90% of people to whom you’d send these cards, this would be appropriate. For the most special people, a more personal, “manual” touch will remain the method of choice, I believe.
I do see this as a huge opportunity for both retail and CPG. This builds brand value and loyalty as much as any typical program.
The tipping point for soial gifting has arrived and should be a significant impact for holiday 2013 vs. 2012. Like all of these technologies in the social space, some retail offers are done in a very authentic way that adds to the overall customer experience. And others feel very clunky and inauthentic. It shouldn’t be forced, and it must be fully integrated into the overall marketing effort to feel right and to add to revenues and to customer engagement.
These latest advances in digital gift cards are fantastic! And don’t forget that it virtually gets rid of the “I forgot to send something” we have all experienced. And forgetting a special day will be eliminated when ‘reminders’ are sent out to past buyers like the catalog retailers do. Yeah I think there are lots of advantages.
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It is truly the gift card for the Millennium generation and then for the rest of us. Social Media should be a part of every retailer’s omnichannel strategy effort going forward to be truly “omni.”
This will be huge—especially for Holiday 2013. We’ve seen that even virtual gifts have taken off, that is the digital “flower bouquets” and icons of gift boxes. Further, consumers have actually paid for those!
The social giving is perfect for graduation, weddings and baby showers, where many people are looking to give gifts to a recipient who may be hundreds of miles away.
Great stuff.
Much like digital coupons, digital gift cards are easier for both consumers and retailers to manage, so they are here to stay. The interesting twist is the social aspect, which lowers friction, making it even easier to send gifts to friends and family. Look for increased use during the upcoming holidays, for sure.
Digital gift cards are easier. In a wireless world, where we connect and communicate via multiple channels, the digital gift card is easy and convenient—and accepted by many to the point of having become normal or mainstream.
Once again, technology is making life simpler and easier. However, I predict that the same way a handwritten thank you note stands out over an emailed thank you, a manual gift card, personally delivered or mailed with a personal card, will stand out over the digital gift card.
This is absolutely the wave of the near present and future. While the ease of engaging in this process will be a plus for retailers and for givers, I agree with others who have expressed the sentiment that a hand-written card or gift carries perhaps more value, especially as it becomes more and more “rare” to receive.
“Convenience” is the key here, of course. For 90% of people to whom you’d send these cards, this would be appropriate. For the most special people, a more personal, “manual” touch will remain the method of choice, I believe.
I do see this as a huge opportunity for both retail and CPG. This builds brand value and loyalty as much as any typical program.
The tipping point for soial gifting has arrived and should be a significant impact for holiday 2013 vs. 2012. Like all of these technologies in the social space, some retail offers are done in a very authentic way that adds to the overall customer experience. And others feel very clunky and inauthentic. It shouldn’t be forced, and it must be fully integrated into the overall marketing effort to feel right and to add to revenues and to customer engagement.
These latest advances in digital gift cards are fantastic! And don’t forget that it virtually gets rid of the “I forgot to send something” we have all experienced. And forgetting a special day will be eliminated when ‘reminders’ are sent out to past buyers like the catalog retailers do. Yeah I think there are lots of advantages.