Social Gifting Wrapp, founded by former executives of Skype and Spotify and backed by 25 prominent retailers including H&M, Gap, Sephora, etc.. has made its debut in US.
The service leverages user social graph and the ubiquitous use of smartphone to draw customer to brick & mortar stores by allowing friends from social networking site to give out free gift cards with values ranging commonly from $5 to $15. You can add more money to them before sending to the recipient. Wrapp’s partners offer a limited number of free gift cards every day. If none are available when you check, try again the next day!
It works like this:
- Using Facebook and a mobile application, people can give their Facebook friends free gift cards
- A notification saying that they’ve received a gift card is posted to that friend’s wall, where anyone can see it and contribute more money if they wish.
- The person, who received the gift card, can then redeem it using a mobile application in the store.
- Read more Wrapp FAQ’s HERE!
Wrapp targets the demographic based on information from Facebook to attract potential customers with enticing free gift cards. Retail stores would be willing to spend a little to acquire new customers. Retailers only pay Wrapp when a customer comes into the store and redeems the gift card.
Wrapp was originated from Sweden where the company has attracted more than 165,000 active users; has given away more than 1.4 million gift cards; and reports that the average sale size from those gift cards are four to six times higher than the card’s original value.