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The Art of Social Gifting

BY Staff Writer

Retailers are always looking for new ways to reach customers, and the race to get onto Facebook walls and news feeds to increase brand exposure has never been greater.

But instead of shelling out dollars to pay for traditional Facebook ads and online banners, many companies are allowing shoppers to do the grunt work for them in an organic way. One of the latest trends is combining social sharing with gift giving, so consumers can send presents — from gift cards to apparel — to others via Facebook.

Brooklyn, N.Y.-based apparel retailer Brooklyn Industries, which has 12 stores in New York, one in Chicago and another in Portland, Ore., as well as an e-commerce site, is among the list of merchants embracing social gifting. In April, it partnered with Swedish-based social gifting app Wrapp, which allows users to send free virtual gift certificates to friends on Facebook. Yes, free. But there’s a catch: A friend has to meet the brand’s target demographic criteria.

“In the past, we tried doing a few offers with Groupon, but it wasn’t attracting the most optimal kind of customer for us,” a Brooklyn Industries spokesperson said. “We liked that free gift cards were sent between friends, and that would get a lot of exposure on Facebook. Since our mobile efforts are still in the works, we saw it as an entryway to that touchpoint.”

The gift certificates — which are usually valued at $5 to $10 — can be posted on a friend’s Facebook wall or Timeline, along with a personal message such as “Happy Birthday!” (Users can add more money to the card to increase its value). To do so, the Wrapp app must be downloaded to an Android or iOS device.

Retailers determine the base value of the card and whom they want to target based on gender, age and location. Recipients who match those demographics can receive a free gift card, which can be redeemed online, via a mobile device or in stores.

On average, those with a Wrapp gift certificate spend four to six times its value.

“We are tying together gifting, social and mobile in an intuitive and fun way, and it’s working,” the Brooklyn Industries spokesperson added. “As payments — and commerce in general — proliferate into the mobile arena, it’s only natural that gifting would grow. It’s important to jump on that wave right now.”

Wrapp — which touts former H&M CEO Fabian Mansson as company chairman — first launched in Sweden in November, and has since expanded to the United States, Norway, the U.K., Germany, France and the Netherlands. It boasts a strong lineup of retailers in addition to Brooklyn Industries, including Gap, H&M and Sephora. (Wrapp only gets paid by merchants when a gift card is redeemed.)

Wrapp CEO Hjalmar Winbladh noted that although the gift-card market recently held steady amid a sinking global retail economy, innovation within the category was stagnant.

“Nothing changed about gift certificates in 50 years — except that paper cards turned into plastic — so there was room for innovation, especially within the social space,” Windbladh said.

Retailers aren’t the only ones getting in on the trend. Facebook — which is ramping up its own mobile strategy — acquired social and mobile gifting app company Karma the same day it went public in May.

Karma users can purchase and send gifts from brands such as Kate Spade and Jonathan Adler in the form of a text, Facebook message or email.

“This is just the beginning of how companies with products and services will leverage the massive audiences on social networks,” said Susan McKenna of Long Beach, Calif.-based social marketing firm McKenna’s Marketing. “Social gifting has an innately viral component to it — people will see it pop up on Facebook walls and want to give gifts to their friends too. It will likely become more popular by the holiday season.”

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Macys.com uses private cloud to personalize digital shopping strategies

BY Deena Amato-mccoy

Macys.com has made a name for itself by analyzing consumer data to gain insight into its loyal shopper base. The retailer, which features more than 60,000 products online and leverages multiple digital channels to share product information cross-channel, has armed itself with a set of internal cloud-based, high-performance analytics tools designed to improve customer segmentation, market-basket analysis and real-time personalization cross-channel, based on a broader scope of product attributes.

“We need to understand where the demand is coming from and how to use the data to know how to best serve our shoppers,” said Kerem Tomak, VP marketing analytics, macys.com. “But managing the volume of data is an increasing challenge.” Indeed, he described the amount of data that the retailer collects as “mind-blowing.”

It is made even more so by the fact that macys.com is looking to harness three dimensions of data: volume of the data, variety of data (including structured and unstructured information), and the velocity with which they receive and process it.

“We have a short time frame to process these large product attributes and match these to customer needs,” Tomak explained. “Traditional BI or near-real-time solutions don’t meet our needs because we have less than a minute to really > capture customer attention. If we don’t do it the right way, she’s gone.”

Knowing how crucial it is to quickly turn raw data into actionable information, macys.com turned its attention to a high-performance analytics tool from SAS, Cary, N.C. The retailer linked the SAS Enterprise Miner to a Hadoop cluster, an open-source, data-management platform initiated by Yahoo and Google. This private cloud platform sits behind macys.com’s firewalls and processes large data sets in a distributed computing environment.

Macys.com compiled two years worth of data, which ranges from 20 terabytes to 30 terabytes. As new data comes into macys.com servers, it is stored on Hadoop and passed to the SAS tool, where macys.com analysts compare information with its historical database to build reports on products, marketing and merchandising views.

Since going live with the system in late 2010, macys.com has gained a unified view of data and performance across its omni-channel enterprise, including insight into who buys which products across what channels, according to Tomak.

“We are also more effectively measuring the impact of online marketing initiatives and how this translates into general sales, as well as sales by channel,” he added.

Macys.com is also able to complete these tasks in shorter, more efficient durations. When processing these reports on the previous system, the system often crashed due to the size of the queries. But that doesn’t happen anymore.

“Now we can get answers within two hours and pass information to SAS. The automation of report generation also saves more than $500,000 a year in comp analyst time. It has become a life saver,” Tomak said.

Looking forward, macys.com plans to use Hadoop to connect its marketing and merchandising operations with its call center to gain a truly unified view of customer response.

“The Macy’s brand has so many customer touchpoints that we need to make sure we can improve how we serve them, deliver the right offers and merchandise when they need it,” Tomak said. “That is the Holy Grail. And it is only possible if we connect different systems across the organization onto one data-processing environment.”

Macys.com hopes to have the integration complete by the end of 2012.

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J.Walker says:
Apr-14-2013 11:58 am

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Since going live with the system in late 2010, macys.com has gained a unified view of data and performance across its omni-channel enterprise, including insight into who buys which products across what channels, according to Tomak.superiorpapers.com

J.Walker says:
Apr-14-2013 11:58 am

Since going live with the system in late 2010, macys.com has gained a unified view of data and performance across its omni-channel enterprise, including insight into who buys which products across what channels, according to Tomak.superiorpapers.com

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Apr-04-2013 12:04 pm

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Mar-31-2013 11:37 pm

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M.Johnson says:
Mar-31-2013 11:37 pm

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Mar-11-2013 12:15 pm

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Mar-11-2013 11:17 am

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Mar-11-2013 12:15 pm

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M.Johnson says:
Mar-11-2013 11:17 am

I would like to see the day when total online security will create the perfect experience for online shoppers. Nowadays we still have to worry about hackers and scamming. That is a pity.

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Mar-10-2013 04:52 pm

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That's a great step ahead, I hope the plan will work as it's supposed to. Using the cloud is more effective and it reduces costs but how about the security? I imagine any hacker could also have his eyes set on it...

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Economic angst has CEOs on edge

BY CSA STAFF

The purchasing power of Walmart shoppers is on the rise as gas prices come down and the improved spending outlook has the company’s share price setting new highs. What’s there to worry about?

Plenty, according to a survey of top executives conducted by the Business Roundtable, an organization that represents companies who combined employ more than 14 million people and generate $6 trillion in annual sales. Member companies include the likes of Walmart, General Electric, AT&T, ExxonMobil and American Express.

The group regularly surveys its members to gauge their outlook on the economy and in the latest go round there was plenty of skepticism about where things are headed.

Click here to read recap by MarketWatch of the survey results or click here to read an actual transcript of a media briefing chaired by Boeing CEO Jim McNerney.

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