There’s been lots of discussion about Facebook Commerce, but no breakout results. That’s likely to change, thanks to Wrapp, a social gifting service. It launched in the US last week after wild success in Sweden.
Here’s how it works. Consumers use Wrapp to buy gift cards from participating brands and send them to friends via Facebook. The card shows up on the recipient’s wall, but cannot be unwrapped until their birthday (or another designated date.) Meanwhile, others can see the card and add money to it. Alternatively, brands can send free gift cards via Facebook to consumers in their target market.
Consumer reaction has been incredibly positive. In Sweden alone users purchased 1.6 million gift cards in four months. The typical user gave a gift card once a week to a friend. Site membership is growing at 30% per week.
Companies are happy with social gifting too. An average consumer spends four to six times more than face value when they redeem their card. And, Wrapp is most popular with women 25-35, a hot target market for many brands.
25 companies have already signed up for Wrapp’s US launch. They include H&M, Sephora, The Wall Street Journal and Threadless.
We should think about...
Should we experiment with Social Gifting via Wrapp or another start-up site?
If we don’t already have a gift card program, should we start one to take advantage of Social Gifting?
For help developing powerful marketing strategies that drive results, strategic plans that deliver growth, or new products that consumers love, call Brandology at 925-417-2253. Click here to learn more about the range of services we offer.