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Social gifting app Wrapp launched in the UK last month after achieving early success among users and retailers in its native Sweden.
The Facebook app allows users to send each other digital gift cards, some of which are provided free of charge by brands as a customer acquisition tool.
Retailer Clas Ohlson was one of the brands that signed-up to tout its wares via the app in Sweden, offering users a range of free and paid-for gift cards.
In total users have sent 108,000 Clas Ohlson gift cards, of which 16,000 have been redeemed.
Marketing manager Charlotte Turnbull said that at first the free vouchers were offered to all users as Wrapp’s user base wasn’t large enough to drill down to the relevant demographics, but more recently it has started to target specific consumers.
She said the company had used Wrapp to promote new store openings, achieving a 40% redemption rate on a free £10 voucher for a new store in Halmstad - and also to alter consumer perspective of the brand.
In Sweden we are seen as an old brand, somewhere that your parents might shop - so it has been great for us to be associated with a new technology. It also fits well with our focus on social marketing.”
Clas Ohlson now intends to roll out its use of Wrapp to the UK, where the objectives will be slightly different.
In Sweden the brand is comparable to Argos, with 100 stores nationwide, but in the UK - where there are just 12 shops - the focus will be on improving brand awareness.
Turnbull said that the app is a great marketing and customer acquisition tool since it allows Clas Ohlson to reach new customers, but it only pays for the giftcards that are redeemed.
She believes that Wrapp’s focus on gifting – where users receive giftcards for their birthday or other special occasions, rather than buying one for themselves - creates a better experience than voucher sites such as Groupon.
We wouldn’t consider using Groupon as it’s just mass of customers without any targeting at all, whereas with Wrapp there’s a more limited number of brands and it offers us a certain amount of control. It’s a totally different model.”
It is still very early days for Wrapp in the UK, but if it can offer merchants similar results to those achieved by Clas Ohlson then it may be able to differentiate itself from the “volume at velocity” model adopted by other voucher sites and attract premium retailers to its gifting app.