ARCHIVES: This is legacy content from before Industry Dive acquired Mobile Commerce Daily in early 2017. Some information, such as publication dates, may not have migrated over. Check out our topic page for the latest mobile commerce news.

Gap Factory spurs mobile-inspired purchases via prize wheel promotion

Gap Factory is enticing social media users into its stores by encouraging them to spin a mobile-optimized prize wheel that offers a discount code in exchange for signing up for the retailer’s text alerts.

Gap’s outlet subsidiary is attempting to connect with social media users and millennial shoppers by showcasing its available discounts in an engaging manner. Individuals who spot the sponsored ad within their Twitter feeds can click on it to visit the brand’s mobile-optimized microsite, where they can spin the wheel and enter their phone number to discover their prize.

“The lure of special discounts and promotions is imperative to get consumers to sign up for SMS programs,” said David Naumann, vice president of marketing at Boston Retail Partners. “Consumers looking to receive special deals are becoming accustomed to receiving text messages from their favorite brands.

“If they find value in the promotions, they will keep the SMS association, and if not, they can easily unsubscribe.”

Spin to Win
Gap Factory’s sponsored Twitter ads inform users, “It’s time to play Spin to Win! Spin for your chance to receive $100 off! Go to gapfactory.com/spin to play!”

The ad also displays an image of the mobile-optimized prize wheel, which showcases discounts in the 10 to 50 percent-off range, as well as the major prize of $100 off a future purchase.

Individuals can either enter the microsite’s URL into their smartphone or desktop browsers, or click on the wheel to get taken to the site. There, they can tap to spin the wheel.

Before their prize is revealed, users will encounter a pop-up, asking them to join Gap Factory’s SMS texting program in order to play Spin to Win.

Consumers can read the fine print regarding the retailer’s SMS program and input their phone number if they want to spin the prize wheel.

Once their phone number has been entered, players will receive a welcome text from Gap Factory, alongside a clickable link that will enable them to spin the prize wheel. They will then receive their percentage discount or amount off their next purchase, a prize that can be redeemed at a Gap Factory or Banana Republic Factory store.

The prize wheel promotion ends on July 13.

Whirring up mobile-inspired purchases
Social media users who interact with the mobile-optimized prize wheel may become inspired to visit Gap Factory or Banana Republic Factory’s mobile site and browse the available inventory. If they happen to win a big-enough discount, it could incite them to make a purchase before their desired items go out of stock.

“Spinning discount wheels provide a fun way for consumers to engage with a brand and winning a special discount is a great way to inspire them to impulse shop on their phone,” Mr. Naumann said. “When shoppers feel like they are getting a special deal, they are likely to be more motivated to make a purchase.

“If a consumer feels like they really won, a deal of 25 percent or more, they will feel compelled to take advantage of the deal by making a purchase. However, if the deal is only 10 percent off, it probably won’t be enough to change purchase decisions.”

A growing number of retailers are capitalizing on mobile users’ tendencies to make impulse purchases if sizable discounts are readily available. Instead of advertising a flat discount rate for all consumers, however, marketers are employing interactive tools such as prize wheels to stoke individuals’ competitiveness and offer them a chance at winning a significant deal.

For example, with beverage brands becoming more creative in their interactive marketing tactics, PepsiCo recently leveraged a mobile-optimized prize wheel microsite to boost customer acquisition, resulting in approximately eight percent of offers being redeemed (see story).

The Gap brand has also been employing a variety of mobile-optimized marketing strategies to connect with its millennial customers and drive sales with less overt advertising tactics.

Gap is tightening the seams on sales this summer with a 100-day-long sweepstakes encouraging customers to complete daily selfie challenges to earn badges using a mobile-optimized passport feature and potentially win prizes (see story).

“SMS programs are becoming a very popular marketing strategy for retailers, as consumers seem to be receptive to this communication vehicle as a means to get extra perks,” Mr. Naumann said. “Since the nature of SMS is mobile focused, it is a smart way to drive more mobile shopping and buying.”