1 8 Ways to Work eGifting Marketing Magic This Holiday Season and Beyond.
Post on 23-Dec-2015
<ul><li> Slide 1 </li> <li> 1 8 Ways to Work eGifting Marketing Magic This Holiday Season and Beyond </li> <li> Slide 2 </li> <li> 2 Todays Speakers Lauren Freedman Founder, CEO, the e-tailing group Kathleen Goodwin VP of Marketing, CashStar </li> <li> Slide 3 </li> <li> 3 The Digital Gifting and Incentives Company Industrys first digital gifting and incentives platform Powering 75+ leading retailers B2C and B2B strategies Boost online and in-store sales Acquire, retain and re-engage customers Build loyalty and brand preference </li> <li> Slide 4 </li> <li> 4 15 years e-commerce consulting Fortune 500 client projects Extensive cross-category expertise Proprietary research studies Author, Its Just Shopping 50+ years experience The Voice of Cross-Channel Merchandising 4 Straight talk from in-the-trenches online merchandising experts </li> <li> Slide 5 </li> <li> 5 Todays Agenda I.Holiday Forecast II.Gifting is a Retail Staple III.Digital Gifting is a Workhorse IV.8 Tactics to Work Gift Card Magic V.Visibility & Seasonality VI.Marketing Optimization VII.The e-tailing group Digital Gifting Readiness Checklist </li> <li> Slide 6 </li> <li> 6 Holiday Forecast: Cautious Optimism Q1/Q2 ecommerce sales grew by 6% and 9% 1 Forecasts suggest annual growth of 10% a year through 2013 2 US retail sales are only poised to see 3-4% gains 3 Consumers will still be frugal this holiday season 29 days to market post-Thanksgiving Competition will remain fierce among multi-channel merchants Cross-channel investments will continue to pay off 6 1 comScore 2 eMarketer 3 NRF </li> <li> Slide 7 </li> <li> 7 II. Gifting is a Retail Staple Gifting has already become a $300B business, representing 10% of the $3T retail economy 7 1 Unity Marketing </li> <li> Slide 8 </li> <li> 8 Importance of Gifting Q10 E-tailing group 2010 Annual Merchant Survey </li> <li> Slide 9 </li> <li> 9 9 the e-tailing group Merchants: the EG100, 4Q09 1-800-flowers Diapers.com King Arthur FlourSephora Aeropostale Dicks Sporting Goods KohlsShop NBC Amazon.com Discovery Channel L.L. Bean Shop PBS American Girl Drs Foster & Smith Lamps Plus Skechers Apple Drugstore.com Lancme USA Solutions Armani Exchange eBags.com Lands End Sony Style Aveda EBGames LegoStaples Bare Necessities eToys LowesSundance Barnes & Noble Famous Footwear MacysTarget Bass Pro Forever 21 MoMAThe Avenue Bath & Body Works Frontgate New EggThe Childrens Place Bed Bath & Beyond Gaiam Nordstrom The Container Store BEST BUY Gap Office DepotThe Home Depot Blue Nile Gardeners Supply OrvisThings Remembered Bluefly Garnet Hill OverstockToys R Us Borders Giggle PetSmartUnder Armour Brooks Brothers Godiva Polo Urban Outfitters Brookstone Golfsmith Pottery BarnVictorias Secret Buy.com Green Mountain QVCVitamin Shoppe Cabelas Harry & David Radio ShackWalgreens Clinique HP Home & Home Office RedEnvelope Wal-Mart Coach HSN REIWilliams-Sonoma Cooking.com iRobot Road Runner SportsWine.com Crate & Barrel J.Crew Saks Fifth AvenueZales Crutchfield JCPenney SearsZappos </li> <li> Slide 10 </li> <li> 10 Gifting Essentials Are in Place One-stop shopping for gift giving Price-point links Recipient segmentation Gift card touted as the gift that always fits Holiday delivery timing Source: 4Q09 EG Mystery Shopping </li> <li> Slide 11 </li> <li> 11 Gifting/Gift Card Evolution Points to Opportunity Traditional Gifting /Gift Certificates Pre-1990 Plastic Gift Cards Late 90s/early 2000s Digital Gifting Emerging 2008/2009 Digital Gift Card as core part of marketing mix 2010 + </li> <li> Slide 12 </li> <li> 12 The Gift Card Should Keep On Giving Consumers prefer choice relative to type and redemption option Merchants can accommodate both format and channel flexibility with cross-channel redemption 4Q09 EG Mystery Shopping </li> <li> Slide 13 </li> <li> 13 Personalized and Customized Gift Cards Evolve An array of engaging house designs available --OR Personalize your own card Photo Image Video Message 1 in 5 merchants offered custom capability in 2009 </li> <li> Slide 14 </li> <li> 14 Consumer Spending On Gift Cards Sees Strong Growth Over half of consumers purchased a Gift Card 1 More than half of consumers said that gift cards made up more than 25% of their total online spending for Holiday 09 1 One-third of consumers spent between $50 and $200 total on gift cards purchased online 1 Almost two-thirds of gift cards purchased online averaged between $10 and $50 each 1 U.S. online gift card sales are projected to hit $5.6 billion in 2014 2 1 2010 Shop.org Holiday Strategy and Planning Guide 2 Javelin Strategy, 2010 </li> <li> Slide 15 </li> <li> 15 Digital Gifting Consumer is Powerful 4554 years old Predominantly female Affluent, earn an average more than $75K/year Well educated, college and college+ 70% spend 20+ hours a week on the web Buys an average of 7 gift cards per year </li> <li> Slide 16 </li> <li> 16 Consumers Give Digital Gifting a Vote of Confidence 93% of digital gift card purchasers would recommend the service to a friend Top reasons for purchasing include: Personalize the gift Ability to choose the amount Avoid shipping and other related charges Speed of delivery Ease of use Security Notification when sent and opened Rising Preference For The Convenience of Digital Gift *2009 Pre-Holiday eGifting Survey </li> <li> Slide 17 </li> <li> 17 Why Growth? Why Now? The Digital Age Has Arrived. It is a primary communication and commerce channel 309mm online purchases 78mm iPhones 35% of all online adults visit a social networking site daily $131mm in eBook sales $200mm iPhone applications sold every month The average dwell time on Facebook is 6 hrs per day 3mm+ iPads Source: CNET, Nielsen Research and Apple </li> <li> Slide 18 </li> <li> 18 Alternative Payments Already in Play 4Q094Q08 Deferred Payment Plans/ BML47%40% eBill Me3%2% Paypal34%23% Google Checkout13% Amazon Checkout1%*1% 4Q09 EG Mystery Shopping </li> <li> Slide 19 </li> <li> 19 Merchants Make Impressions Responding to Consumer Interest In Social Media E-tailing group 2010 Annual Merchant Survey </li> <li> Slide 20 </li> <li> 20 23% of US mobile-phone users have smart phones Mobile Embraces Anywhere, Anytime Buying eMarketer </li> <li> Slide 21 </li> <li> 21 III. eGifting is a Core Strategy Digital gift cards were seen as the ONE thing merchants will invest in for Holiday 2010 21 2010 Shop.org Holiday Strategy and Planning Guide </li> <li> Slide 22 </li> <li> 22 Merchant Alert: Digital Giftings Time Is Now Digital gift cards fuel opportunities for merchants to build year-round and seasonal programs They cost-effectively motivate and drive desired customer behavior Retailers take advantage of the requisite retail marketing trifecta: acquisition, retention, and re-engagement Digital gift cards serve as a multi-channel tool Realized digital gift card loss ratios among retailers can be as high as 45% Merchants must increasingly make use of digital currencies and gift cards. Today s eGift cards fuel opportunities for merchants to build year-round and seasonal programs, supporting the evolution of both B2C and B2B marketing strategies. They cost-effectively motivate and drive desired customer behavior based on each merchant s unique marketing methodologies. This enables retailers to take advantage of the requisite retail marketing tri-fecta: acquisition, retention, and re-engagement. With proper planning and superior marketing execution these workhorses are poised to be part of any retailer s integrated marketing mix. Retailers are embracing digital solutions that protect margins and safeguard customers </li> <li> Slide 23 </li> <li> 23 Q3 E-tailing group 2010 Annual Merchant Survey Retailer Strategic Goals </li> <li> Slide 24 </li> <li> 24 Powerful Digital Gifting Performance Results Every transaction delivers 2 customers Average face value of digital gift cards higher than traditional 93% of all purchases included a personal message One in seven buyers uploaded a personal photo 20% of buyers chose a future delivery date *2009 Pre-Holiday eGifting Survey </li> <li> Slide 25 </li> <li> 25 IV. 8 Tactics to Work Gift Card Magic 25 </li> <li> Slide 26 </li> <li> 26 Tactic #1: Incenting Customers With Gift Cards Goal: Retention, Branding, Cross-Channel Traffic Driver Ideal Business Segments: B2C Optimal Timing: Year-Round Why It Works: Increases revenues to the bottom-line; Rewards best customers; Drives future spending Optimize existing customers Encouraging higher order values has performed Reward big spenders to drive repeat business Foster customer relationship building Deliver efficient re- engagement </li> <li> Slide 27 </li> <li> 27 Tactic #2: Customer Issue Resolution Tool Goal Retention, Customer Service, Branding, Cross- Channel Traffic Driver Ideal Business Segments: B2C Optimal Timing Year-Round Why It Works Feel-good strategy for customer and easy-to- implement solution Resolve customer service issues perfect solution for any customer service challenge Fulfill warranty obligations Returns and refunds </li> <li> Slide 28 </li> <li> 28 Tactic #3: Rewards Programs 56% of EG100 merchants have a rewards program Stimulates buying Increase visits to web and brick-and-mortar locations Goal: Retention, Re-Engagement, Branding, Cross-Channel Traffic Driver Ideal Business Segments: B2C Optimal Timing: Year-Round Why It Works:Increases overall sales volume </li> <li> Slide 29 </li> <li> 29 Tactic #4: Re-engage Lapsed Customers Goal Re-Engagement, Retention, Branding, Cross- Channel Traffic Driver Ideal Business Segments B2C Optimal Timing Year-Round Why It Works Individual has been a customer so likely has a pre-disposition to shop your brand where promotional prodding can perform; Once they are re-engaged retention is the goal Bring customers back through We Miss You promotions Re-engage ones customers for retention efforts Increase life-time value of a customer Incent repeat visits to in-store </li> <li> Slide 30 </li> <li> 30 Tactic #5: Behavior Motivation Instant reward for shoppers Surveys ideal deployment Testing online or in-store tools an option Talbots sold 590,000 pairs in nine weeks Goal; Achieve Desired Behavior, Retention, Re-Engagement, Branding, Cross- Channel Traffic Driver Ideal Business Segments: B2C Optimal Timing: Year-Round Why It Works: Customers enjoy being rewarded; Information secured and exposure is well worth the payout </li> <li> Slide 31 </li> <li> 31 Tactic #6: B2B Corporate Gifting 46% of the EG100 have a Corporate Gifting initiative Recipient preference for digital gift alternative Efficient purchasing experience Goal: Branding, Acquisition Ideal Business Segments: B2B Optimal Timing: Seasonal; Some Year-Round Needs Why It Works: Simple; Excellent choice for all customers; Efficient to execute </li> <li> Slide 32 </li> <li> 32 Tactic # 7: Rewards and Employee Incentives Incentive market $30-70B 1 $4.9B in gift cards 1 25% projected annual growth 1 eGift Cards are a simple solution Employee behavior driver Goal: Behavior Driver Ideal Business Segments: B2B Optimal Timing: Year-Round Why It Works: Efficient deployment; organizations; drives specific employee behavior 1 Prepaid Press </li> <li> Slide 33 </li> <li> 33 V. Visibility & Seasonality 33 </li> <li> Slide 34 </li> <li> 34 eGifting Is Multi-Dimensional From gift centers to navigational visibility, all locations should be in play </li> <li> Slide 35 </li> <li> 35 Structure Your Holiday Promotional Calendar Around Key Dates Have a calendar of promotions ready Reinforce year-round opportunities Message multiple times Remind shoppers of the power of digital gifting Digital gift card shopping days differ DateDay Nov 30Cyber Monday Dec 14Monday Nov 27Black Friday Dec 5Tuesday Dec 7Monday Dec 16Wednesday Big Research/Shop.org Q4/09 Top Revenue Days DateDay Nov 27Black Friday Nov 30Cyber Monday Dec 18Friday (Shipping deadline) Dec 18Saturday (Shipping deadline) Dec 20Monday (Shipping deadline Dec 22Tuesday Dec 23Wednesday Dec 24Thursday Dec 25Friday Q4/09 Top $ Digital Gifting Days *2009 CashStar Retail Study </li> <li> Slide 36 </li> <li> 36 Email Captures Last-Minute Purchasing Opportunities Almost 50% of those who bought gift cards in the last year say they tend to shop for gifts at the last minute Source: Javelin US Gift Card Study </li> <li> Slide 37 </li> <li> 37 The Power of Last Minute Digital Gifting 37 W e were thrilled to see a tremendous spike in gift card sales during the week leading up to Christmas because customers could have the eGift Cards e-mailed immediately. That week (the week leading up to the Christmas holiday ) historically, has been a valley for online sales of traditional gift cards due to shipping deadlines. It was definitely a great solution for the last minute holiday shoppers. Margery Hurlbut, Customer Solutions Director The Container Store. </li> <li> Slide 38 </li> <li> 38 Gift Card Buy Page </li> <li> Slide 39 </li> <li> 39 VI. Marketing Optimization Why Social Media Matters </li> <li> Slide 40 </li> <li> 40 Digital Gift Card Provide Multiple Delivery Touch Points </li> <li> Slide 41 </li> <li> 41 Tactic # 8: Give One, Get One Multi-channel promotion In-store and on the website Consistent messaging Email campaign Blogger outreach 13K new email addresses 11.2M social media impressions over two days Average face value more than double that of traditional plastic cards Goal: Acquisition, Retention, Re-Engagement, Branding, Cross-Channel Traffic Driver Ideal Business Segments: B2C Optimal Timing: Year-Round Why It Works:Average face value can increase 11% to 23% </li> <li> Slide 42 </li> <li> 42 Use Social Media To Engage and Attract New Fans Hours </li> <li> Slide 43 </li> <li> 43 VII. the e-tailing group eGifting Readiness Checklist 1.Review your current plan 2.Brainstorm gifting strategies 3.Integrate digital gift cards in your strategic holiday mix 4.Develop compelling creative tactics 5.Build out calendar with key selling dates 6.Explore a variety of strategies 7.Partner wisely 8.Deliver best-in-class customer service year-round </li> <li> Slide 44 </li> <li> 44 To learn more about CashStar and to get a FREE digital gifting analysis, contact PhilMoran@cashstar.com or Kgoodwin@cashstar.comPhilMoran@cashstar.com To learn more about the e-tailing group, go to www.e-tailing.comwww.e-tailing.com Or contact Lauren Freedman at LF@e-tailing.com </li> <li> Slide 45 </li> <li> 45 A FREE copy the e-Tailing Groups ecommerce report will be automatically emailed to you.. Thank You! </li> </ul>
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