As well as another selling channel, social gifting app Wrapp lets retailers learn more about their customers.
Fabian Månsson, co-founder of Wrapp, sees the social gifting app as a new way for retailers to maximise their exposure across social media sites. When users download the Wrapp app it asks them to allow access to their Facebook account. Once permission for this has been granted, the app takes friend data from Facebook and integrates it with Wrapp, leaving users with a home page showing who of their Facebook friends has a birthday, either this week or this month, which then continues month by month. There is also an option to see a list of friends by alphabetical order rather than birth date.
When users click on a friend in the list they are then given the opportunity to send that friend a gift from a selection below. Some of the gifts currently on the app include £3 at Pizza Express, £6 for Glamour magazine or £5 at high street retailer Warehouse. Once users choose a gift to send to that friend, they then get the opportunity to add an accompanying message. Once the user clicks to ‘Give’ that gift there are two options: they can either send via email or Facebook.
If the Facebook option is chosen, the message and the gift are posted onto that friend’s Facebook wall, where he or she can claim it. From a customer point of view, a gift like this in the social space is much less likely to be greeted with suspicion because it has been posted by a friend (although it may take time for the more sceptical users to stop viewing it as spam). It’s free for a user to send a gift and although the values are quite small amounts, a number of users could send the same gift to a friend for their birthday if they are all signed up to the Wrapp app.
For retailers, this app introduces them to a large audience through a trusted source. The app also allows them to segment the audience by the data they supply to Facebook (age, gender etc) to specify which offers are available to which group. The retailer only pays Wrapp if a gift is actually used.
Wrapp was launched in Sweden in November last year and has 214,000 active users who have given 1.7 million gift cards that can be used in retailers across Sweden, the UK and US. With social sites still a big challenge for many retailers Wrapp gives them the opportunity to reward their customers and introduce the brand to a new audience and all the while collecting data and driving sales.
Five ways retailers are using Wrapp
1. Give something back to the Facebook community
Wrapp helps retailers to celebrate and thank its customers for visiting its page, stay engaged and talk to the retailer via Facebook. Karen Millen recently ran a promotion where it gave its fans gift cards via Wrapp to redeem in-store or online.
2. Create brand awareness on Facebook This type of friend-to-friend marketing allows retailers to engage with users in scenarios that aren’t usually brand-friendly. If a brand were to post on a fan’s wall it might be seen as intrusive, whereas if a friend posts a retailer’s gift card on another friend’s wall it is seen in a completely different light. This is a subtle, more valuable way for retailers to gain exposure on Facebook.
3. Gain insight into the Facebook community Wrapp’s marketing team works with retailers to ensure they make the most of its users’ Facebook relationships. In other words, Wrapp helps retailers to gain access to and utilise Facebook’s social graph.
4. Match offline customer behaviour to Facebook engagement For retailers, identifying their most engaged Facebook fans is easy. But understanding how these customers behave when they visit their bricks- and-mortar stores is not as simple. Wrapp’s data helps brands to understand how customers who receive gift cards online act when they are in a physical store.
5. Drive sales through social media Ultimately, Wrapp helps brands to link Facebook engagement with sales. It allows retailers to build relationships and drive existing or prospective customers in-store. It fosters repeat business and strengthens rather than dilutes a brand.