STORES Magazine - October/November 2017 - 49
From day one of GiftNow's development, Erez says, Loop had a Duke University psychology advisor onboard to guide the company about the feelings customers have about gifting. In this age of online gift buying, he says customers feel frustrated: While trying to buy gifts, something major is "broken" - the emotions attached to giving. "Online stores were not originally designed for shopping for someone else," he says. The Loop process is meant to be simple and quick. Once a gift is chosen, the giver clicks the GiftNow button and enters the recipient's email. The recipient digitally receives the gift with a personalized message. The gift is opened online and can be accepted as is, customized if necessary or exchanged for a different present. Returns and exchanges occur virtually, and the gift is shipped to the address the recipient provides. "There is no need for the recipient to add the gift to a cart, go through checkout or enter a gift card code to redeem their present," Erez says. Loop's platform requires no changes to a retailer's website, order management system, payments, accounting or inventory. The platform has full enterprise security and it takes less than four weeks to become a GiftNow retailer, ready for business with minimal resources needed. GiftNow was a certified partner on American Giant's platform, Salesforce Commerce Cloud. "A light tech-lift was critical to our decision and we were able to launch with very little effort," Patchen says, "in time for peak season." YEAR-ROUND BUYING Retailers have seen a significant increase in year-round business by using GiftNow, Erez says. Eliminating the shipping cutoff date extends sales for a retailer. "This concept allows retailers to always be open for business," Erez says: Retailers can add an extra 42 days of sales each year with lastminute holiday and birthday gifts. The biggest day for gifting, surprisingly, is not Christmas. "Birthdays are always number one," Erez says. Many givers tend to wait until the last minute. "Over 40 percent of all gifts are purchased the day before all holidays, including birthdays," he says. Digitalizing merchandise allows a gift to be delivered on time, followed later by the actual gift; any product can be sent as an e-gift. Shipping charges and taxes are estimated without knowing the recipient's address, and digitalized gifts can be delivered within minutes or at a future time specified by the giver. The concept also increases the range of merchandise that can be sent as a gift. Previously, if a customer wanted to give a pair of shoes but did not know the recipient's size, the item would have been eliminated as a potential gift. Loop offers another gifting option: Gift360 is designed for business e-gifting to clients, colleagues and consumers for holidays or anytime occasions. The latest wave in technology is online personalization, and creating a personal connection with consumers can increase the odds of future sales. "Loop supports us in developing the relationship between our brand and our customers by channeling emotion and excitement, rather than a singular transaction," Patchen says. "We are excited in the future to roll out GiftNow's updates for customers to gift to their recipients via new methods like text as well as email." Virginia-based D. Gail Fleenor has written hundreds of articles about retail, technology and consumer research following nearly two decades as a supermarket research manager. STORES.ORG STORES October/November 2017 49