8 Ways to Work eGifting Marketing Magic This Holiday Season - PowerPoint Presentation

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8 Ways to Work eGifting Marketing Magic This Holiday Season and BeyondSlide2

Today’s Speakers

Lauren Freedman

Founder, CEO, the e-tailing group

Kathleen GoodwinVP of Marketing, CashStarSlide3

The

Digital Gifting and Incentives Company

Industry’s 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 preferenceSlide4

15 years e-commerce

consulting

Fortune 500 client

projects

Extensive

cross-category

expertise

Proprietary research

studies

Author,

“It’s Just Shopping”

50+ years experience

The Voice of Cross-Channel Merchandising

4

Straight talk from “in-the-trenches” online merchandising expertsSlide5

Today’s Agenda

Holiday Forecast

Gifting is a Retail Staple

Digital Gifting is a Workhorse

8 Tactics to Work Gift Card Magic

Visibility & Seasonality

Marketing Optimization

The e-tailing group Digital Gifting Readiness Checklist Slide6

Holiday Forecast: Cautious Optimism

Q1/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% 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 3NRFSlide7

II. Gifting is a R

e

tail Staple

Gifting has already become a $300B business, representing 10% of the $3T retail economy

7

1

Unity MarketingSlide8

Importance of Gifting

Q10

E-tailing group 2010 Annual Merchant SurveySlide9

9

the e-tailing group Merchants: the EG100, 4Q09

1-800-flowers Diapers.com King Arthur

Flour Sephora

Aeropostale Dick’s Sporting Goods Kohl’s Shop NBC

Amazon .com Discovery Channel L.L. Bean Shop PBS

American Girl Drs Foster & Smith Lamps Plus Skecher’s

Apple Drugstore.com Lancôme USA Solutions

Armani Exchange eBags.com Lands’ End Sony Style

Aveda EBGames Lego Staples

Bare Necessities eToys Lowes Sundance

Barnes & Noble Famous Footwear Macy’s Target

Bass Pro Forever 21 MoMA The Avenue

Bath & Body Works Frontgate New Egg The Children’s Place

Bed Bath & Beyond Gaiam Nordstrom The Container Store

BEST BUY Gap Office Depot The Home DepotBlue Nile Gardener’s Supply Orvis Things Remembered

Bluefly Garnet Hill Overstock Toys ‘R UsBorders Giggle PetSmart Under Armour

Brooks Brothers Godiva Polo Urban Outfitters

Brookstone Golfsmith Pottery Barn Victoria’s Secret

Buy.com Green Mountain QVC Vitamin Shoppe

Cabela’s Harry & David Radio Shack Walgreen’s

Clinique HP Home & Home Office RedEnvelope Wal-Mart

Coach HSN REI Williams-Sonoma

Cooking.com iRobot Road Runner Sports Wine.com

Crate & Barrel J.Crew Saks Fifth Avenue Zales

Crutchfield JCPenney Sears ZapposSlide10

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 ShoppingSlide11

Gifting/Gift Card Evolution Points to OpportunitySlide12

The Gift Card Should Keep On Giving

Consumers

prefer choice relative to type and redemption

optionMerchants can accommodate both format and channel

flexibility with cross-channel redemption

4Q09 EG Mystery ShoppingSlide13

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 2009Slide14

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

1One-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 20142

12010 Shop.org Holiday Strategy and Planning Guide

2Javelin Strategy, 2010Slide15

Digital Gifting Consumer is Powerful

45–54 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 yearSlide16

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 SurveySlide17

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 Slide18

Alternative Payments Already in Play

4Q09

4Q08

Deferred Payment Plans/

BML

47%

40%

eBill Me

3%

2%

Paypal

34%

23%

Google Checkout

13%

13%

Amazon Checkout

1

%*

1%

4Q09 EG Mystery ShoppingSlide19

Merchants Make Impressions Responding to Consumer Interest In Social Media

E-tailing group 2010 Annual Merchant SurveySlide20

23% of US mobile-phone users have smart phones

Mobile Embraces “Anywhere, Anytime” Buying

eMarketerSlide21

III. e

Gifting is a Core Strategy

Digital gift cards were seen as the ONE thing merchants will invest in for Holiday 2010

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2010 Shop.org Holiday Strategy and Planning Guide Slide22

Merchant Alert: Digital Gifting’s 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-engagementDigital 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 customersSlide23

Q3

E-tailing group 2010 Annual Merchant Survey

Retailer Strategic GoalsSlide24

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 SurveySlide25

IV. 8 Tactics to Work Gift Card Magic

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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-engagementSlide27

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 Slide28

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 volumeSlide29

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 one’s customers for retention efforts

Increase life-time value of a customer

Incent repeat visits to in-store Slide30

Tactic #5: Behavior Motivation

Instant reward for shoppers

Surveys ideal deployment

Testing online or in-store tools an option

Talbot’s 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

payoutSlide31

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 executeSlide32

Tactic # 7: Rewards and Employee Incentives

Incentive market $30-70B

1

$4.9B in gift cards

125% 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

;

drive

s specific

employee

behavior

1

Prepaid PressSlide33

V. Visibility & Seasonality

33Slide34

eGifting Is Multi-Dimensional

From gift centers to navigational visibility, all locations should be in playSlide35

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

Date

Day

Nov 30

Cyber Monday

Dec 14

Monday

Nov 27

Black Friday

Dec 5

Tuesday

Dec 7

Monday

Dec 16

Wednesday

Big Research/Shop.org

Q4/09 Top Revenue Days

Date

Day

Nov

27

Black Friday

Nov

30

Cyber

Monday

Dec

18

Friday (Shipping

deadline)

Dec 18

Saturday (Shipping

deadline)

Dec

20

Monday (Shipping

deadline

Dec 22

Tuesday

Dec 23

Wednesday

Dec 24

Thursday

Dec

25

Friday

Q4/09 Top $ Digital Gifting Days

*

2009 CashStar Retail StudySlide36

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 StudySlide37

The Power of Last Minute Digital Gifting

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“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.Slide38

Gift Card Buy Page Slide39

VI. Marketing Optimization

Why Social Media MattersSlide40

Digital Gift Card Provide Multiple Delivery Touch PointsSlide41

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% Slide42

Use Social Media To Engage and Attract New Fans

HoursSlide43

VII. the e-tailing group

e

Gifting Readiness Checklist

Review your current

plan

Brainstorm

gifting strategies

Integrate digital gift cards in your strategic holiday mix

Develop compelling creative tactics

Build out c

alendar with key selling dates

Explore a variety of strategies

Partner wisely

Deliver best

-in-class customer service year-round

 Slide44

To learn more about CashStar and to get a FREE digital gifting analysis

, contact

PhilMoran@cashstar.com

or Kgoodwin@cashstar.com

To learn more about

the e-tailing group, go to

www.e-tailing.com

Or contact Lauren Freedman at LF

@e-tailing.com

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A FREE copy the e-Tailing Group’s ecommerce report

will be automatically emailed to you.

.

Thank You!