8 Ways to Work eGifting Marketing Magic This Holiday Season and Beyond

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8 Ways to Work eGifting Marketing Magic This Holiday Season and Beyond. Todays Speakers. Lauren Freedman Founder, CEO, the e-tailing group Kathleen Goodwin VP of Marketing, CashStar. The Digital Gifting and Incentives Company . Industrys first digital gifting and incentives platform - PowerPoint PPT Presentation

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<p>Slide 1</p> <p>8 Ways to Work eGifting Marketing Magic This Holiday Season and Beyond</p> <p>#1Todays SpeakersLauren FreedmanFounder, CEO, the e-tailing group</p> <p>Kathleen GoodwinVP of Marketing, CashStar</p> <p>#2</p> <p>The Digital Gifting and Incentives Company </p> <p>Industrys first digital gifting and incentives platformPowering 75+ leading retailersB2C and B2B strategies Boost online and in-store salesAcquire, retain and re-engage customersBuild loyalty and brand preference</p> <p>#CashStar is The Digital Gifting and Incentives company. Unlike any other company, CashStar is the only provider with an integrated platform powerful enough to accommodate all the digital gifting and multi-channel marketing strategies of smart, innovative retailers. we enable retailers to offer Individual Digital Gifting for Immediate, personalized, secure, bar-coded digital gift card that can be redeemed online or in-store Bulk Digital Gifting to Allow your corporate clients to bulk order digital gift cards that can be personalized and sent to recipients via email Quickly fulfill warranty requests, returns or refunds with digital gift cards for the purchase price of the item, instead of replacement or repair Offers &amp; Incentives -- Easily set up and administer digitally-delivered promotion, special offer, coupon and incentive programs; you can also layer promotions onto every gift card transaction - more on this later Customer Engagement and Retention Take advantage of proactive, marketing-driven initiatives that target and reward certain customers or prospects with a digital gift card Customer Care Enable your Customer Service professionals to create and email digital gift cards in response to consumer-satisfaction issues Mobile Gifting Let your customers purchase, personalize and send digital gift cards directly from a mobile device; recipients can redeem their gifts directly from their mobile devices, tooSocial Media Integration Develop a profitable presence in the social media realm (e.g., Facebook, Twitter) with customized digital marketing and social media promotions</p> <p>315 years e-commerce consultingFortune 500 client projectsExtensive cross-category expertiseProprietary research studiesAuthor, Its Just Shopping50+ years experience</p> <p>The Voice of Cross-Channel Merchandising</p> <p>4Straight talk from in-the-trenches online merchandising experts#15 years e-commerce consultingFortune 500 client projects ranging from strategic planning, customer experience with an emphasis on merchandising to technology marketing and lead generationExtensive cross-category expertise with merchants B2C and B2B Proprietary research studies on mystery shopping, merchandising and consumer behaviorAuthor, Its Just Shopping50+ years traditional retail and catalog experience</p> <p>4Todays AgendaHoliday ForecastGifting is a Retail StapleDigital Gifting is a Workhorse8 Tactics to Work Gift Card MagicVisibility &amp; SeasonalityMarketing OptimizationThe e-tailing group Digital Gifting Readiness Checklist #5Holiday Forecast: Cautious OptimismQ1/Q2 ecommerce sales grew by 6% and 9%1 Forecasts suggest annual growth of 10% a year through 20132US retail sales are only poised to see 3-4% gains3Consumers will still be frugal this holiday season29 days to market post-ThanksgivingCompetition will remain fierce among multi-channel merchantsCross-channel investments will continue to pay off61comScore 2eMarketer 3NRF#Q1/Q2 ecommerce sales grew by 6% and 9%1 while forecasts suggest annual growth of 10% a year through 20132US retail sales are only poised to see 3-4% gains3Consumers will still be frugal this holiday season so deal seekers will be on the prowlChristmas falls on a Saturday so retailers have 29 days to market post-ThanksgivingConsumers shop across a range of retailers online from Amazon to Zappos, so competition will remain fierce where multi-channel merchants will likely have an edge due to their significant investmentsTodays consumers are increasingly choosing to both research and shop via the web so cross-channel investments will continue to pay off where mobile and social will begin to take hold</p> <p>6II. Gifting is a Retail StapleGifting has already become a $300B business, representing 10% of the $3T retail economy71Unity Marketing#7Importance of GiftingQ10E-tailing group 2010 Annual Merchant Survey#Gifting is settling in at under 14% of surveyed merchants web business as its importance is contingent upon the strategic nature of ones overall business89</p> <p>the e-tailing group Merchants: the EG100, 4Q09 </p> <p> 1-800-flowers Diapers.com King Arthur FlourSephoraAeropostale Dicks Sporting Goods KohlsShop NBCAmazon .com Discovery Channel L.L. Bean Shop PBSAmerican Girl Drs Foster &amp; Smith Lamps Plus SkechersApple Drugstore.com Lancme USA SolutionsArmani Exchange eBags.com Lands End Sony StyleAveda EBGames LegoStaplesBare Necessities eToys LowesSundanceBarnes &amp; Noble Famous Footwear MacysTargetBass Pro Forever 21 MoMAThe AvenueBath &amp; Body Works Frontgate New EggThe Childrens PlaceBed Bath &amp; Beyond Gaiam Nordstrom The Container StoreBEST BUY Gap Office DepotThe Home DepotBlue Nile Gardeners Supply OrvisThings RememberedBluefly Garnet Hill OverstockToys R UsBorders Giggle PetSmartUnder ArmourBrooks Brothers Godiva Polo Urban OutfittersBrookstone Golfsmith Pottery BarnVictorias SecretBuy.com Green Mountain QVCVitamin ShoppeCabelas Harry &amp; David Radio ShackWalgreensClinique HP Home &amp; Home Office RedEnvelope Wal-MartCoach HSN REIWilliams-SonomaCooking.com iRobot Road Runner SportsWine.comCrate &amp; Barrel J.Crew Saks Fifth AvenueZalesCrutchfield JCPenney SearsZappos#9Gifting 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</p> <p>Source: 4Q09 EG Mystery Shopping#10Gifting/Gift Card Evolution Points to Opportunity</p> <p>#Were in the midst of moving from Paper to pixels . Thanks to evolution of the Internet and now social networking sites, texting and the abundance of mobile devices, the way consumers interact is changing. </p> <p>Consumers are now in CONSTANT communication and we see this as an opportunity for retailers to to package their gift card programs and incentives in a way that is relevant for this emerging market.11The Gift Card Should Keep On GivingConsumers prefer choice relative to type and redemption optionMerchants can accommodate both format and channel flexibility with cross-channel redemption</p> <p>4Q09 EG Mystery Shopping#90% of the EG100 currently making them available on their sites Consumers prefer choice relative to type and redemption option 90% offer to mail the card 60% offer digital delivery (unfortunately) Cross-channel redemption optimal so merchants should strive to accommodate both format and channel flexibility </p> <p>12Personalized and Customized Gift Cards Evolve An array of engaging house designs available--ORPersonalize your own cardPhotoImageVideo Message</p> <p>1 in 5 merchants offered custom capability in 2009</p> <p>#13Consumer Spending On Gift Cards Sees Strong GrowthOver half of consumers purchased a Gift Card1More than half of consumers said that gift cards made up more than 25% of their total online spending for Holiday 091One-third of consumers spent between $50 and $200 total on gift cards purchased online1Almost two-thirds of gift cards purchased online averaged between $10 and $50 each1</p> <p> U.S. online gift card sales are projected to hit $5.6 billion in 20142 12010 Shop.org Holiday Strategy and Planning Guide 2Javelin Strategy, 2010#Gift cards were incredibly popular, with over half of consumers buying at least one, predominantly for specific stores like Amazon or Best Buy1Not quite half of consumers said that gift cards made up a quarter or less of their total online spending for Holiday 091One-third of consumers spent between $50 and $200 total on gift cards purchased online1Almost two-thirds of gift cards purchased online averaged between $10 and $50 each1</p> <p> U.S. online gift card sales are projected to hit $5.6 billion in 20142 </p> <p>14Digital Gifting Consumer is Powerful</p> <p>4554 years oldPredominantly femaleAffluent, earn an average more than $75K/yearWell educated, college and college+70% spend 20+ hours a week on the webBuys an average of 7 gift cards per year</p> <p>#15From our own research most loyal and frequent consumer who purchas egift cards online </p> <p>In short, your best customer.Consumers Give Digital Gifting a Vote of Confidence93% 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 deliveryEase of use Security Notification when sent and opened</p> <p>Rising Preference For The Convenience of Digital Gift *2009 Pre-Holiday eGifting Survey#Our eGC customers have the opportunity to provide us feedback on their eGifting experiences by opting into a survey.</p> <p>Our service has a very high approval rating , in fact, 93%, of purchasers say they would recommend the service to a friend </p> <p>Their Top reasons for purchasing include: Personalization tops the score followed immediately by the ability to customize the card, </p> <p> denomination, delivery date , immediate delivery of card and delivery confirmation of when the card is sent and opened by the recipient. </p> <p>16</p> <p>Why Growth? Why Now?The Digital Age Has Arrived.It is a primary communication and commerce channel309mm online purchases</p> <p>78mm iPhones35% of all online adults visit a social networking site daily$131mm in eBook sales $200mm iPhone applications sold every month</p> <p>The average dwell time on Facebook is 6 hrs per day 3mm+ iPadsSource: CNET, Nielsen Research and Apple #17Piper Jaffray predicts that total US revenues from virtual goods will reach $621 million this year and $6bn in 2013</p> <p>SUMMARYConsumers seek choiceDigital goods play an increasing roleDigital tools include convenience and personalization driversConsumers embrace the green aspect of digital buying</p> <p>Alternative Payments Already in Play4Q094Q08Deferred Payment Plans/ BML47%40%eBill Me 3%2%Paypal34%23%Google Checkout13%13%Amazon Checkout1%*1%</p> <p>4Q09 EG Mystery Shopping#18Alternative Payments Extend Reach as Consumers See This Choice as Both Practical and Secure</p> <p>Merchants Make Impressions Responding to Consumer Interest In Social Media</p> <p>E-tailing group 2010 Annual Merchant Survey</p> <p>#78% employ Facebook fan pages, 65% use customer reviews, and 64% are publishing via Twitter all which fuel digital gifting</p> <p>Social and Customer reviews are the new advertising. They are ubiquitous and they more authenticity among peers than traditional advertising. That why delighting the customer has never been more important. Retailers need to spend as much time and $$ on delighting the customer as they catalogues and advertising .1923% of US mobile-phone users have smart phonesMobile Embraces Anywhere, Anytime Buying</p> <p>eMarketer#2023% of US mobile-phone users have smart phones, fostering further adoption</p> <p>III. eGifting is a Core Strategy </p> <p>Digital gift cards were seen as the ONE thing merchants will invest in for Holiday 2010</p> <p>212010 Shop.org Holiday Strategy and Planning Guide #Digital gift cards were seen as the ONE thing merchants will invest in for Holiday 2010, alongside increased merchandise assortments, more lower-priced items, brands added for holiday season and inventory management </p> <p>21Merchant Alert: Digital Giftings Time Is NowDigital gift cards fuel opportunities for merchants to build year-round and seasonal programs They cost-effectively motivate and drive desired customer behaviorRetailers take advantage of the requisite retail marketing trifecta: acquisition, retention, and re-engagementDigital gift cards serve as a multi-channel toolRealized digital gift card loss ratios among retailers can be as high as 45%</p> <p>Merchants must increasingly make use of digital currencies and gift cards. Todays 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 merchants 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 retailers integrated marketing mix. Retailers are embracing digital solutions that protect margins and safeguard customers#Digital gift 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 merchants unique marketing methodologiesRetailers take advantage of the requisite retail marketing tri-fecta: acquisition, retention, and re-engagement and are poised to be part of any retailers integrated marketing mixDigital gift cards serve as a multi-channel tool rather than a siloed initiative where their currency acts as a cross-channel bridge, driving customers into retail stores once again Realized digital gift card loss ratios among retailers can be as high as 45% for major consumer electronics brands while large department stores and top apparel brands are in the 20% range so merchants are embracing digital solutions that protect margins and safeguard customers</p> <p>22Q3</p> <p>E-tailing group 2010 Annual Merchant SurveyRetailer Strategic Goals#While their priority order shifts, customer acquisition, experience, and retention maintain Top 2 rankings in importance of strategic goals, along with profitability and driving qualified traffic to the site; new metrics signal growing importance of social marketing (48%)and emergence of mobile initiatives (23%) </p> <p>KG: Customer experience should subsume customer service customer service going down mean they dont really understand social media. 23Powerful Digital Gifting Performance Results</p> <p>Every transaction delivers 2 customers Average face value of digital gift cards higher than traditional93% of all purchases included a personal message One in seven buyers uploaded a personal photo 20% of buyers chose a future delivery date</p> <p>*2009 Pre-Holiday eGifting Survey#Traditional plastic gift cards do not allow retailers to acquire and identify consumers. </p> <p>Every digital gift card transaction allows the retailer to capture the giver, the recipient and the moment of their relationship. </p> <p>For example I know that Lauren gave her brother an eGift card for his birthday. As a result, on a year-around basis I can market( (with </p> <p>their permission) to Lauren and her brother, and I can time specific promotions and offers to personal events I know will connect the two. </p> <p>Because of the pe...</p>