The total value of Alibaba shares sold as part of the IPO reached $25 billion after underwriters exercised their options, making it the largest ...
The retailer launched a virtual goods promotion last month.
Less than a month after Shoebuy.com launched a promotion in which it rewards consumers who make a purchase with Facebook Credits—the social network giant’s virtual currency that social gamers can use to buy digital goods and services on more than 200 online games—the online-only retailer is already generating significant results.
The promotion gives consumers 50 Facebook Credits for each purchase, the cash equivalent of $5. Shoebuy, No. 77 in the Top 500 Guide, launched the marketing effort using technology from e-marketing firm Ifeelgoods.
The online-only retailer says that the number of consumers who clicked on its Facebook ads that mentioned the incentive was double the number who clicked ads featuring other offers. Moreover, nearly half of the consumers who clicked to redeem the virtual currency after making a purchase commented about the promotion on Facebook.
“We were pleasantly surprised to see sharing as high as it was,” says Scott Silverman, co-founder and vice president of marketing for Ifeelgoods.
Silverman says the results are likely to be as good or better at other times of the year when retailers offering a Facebook Credits promotion will have less competition.
One reason consumers are drawn to Facebook Credits as an incentive is that, even though they like using them for social gaming, they don’t like paying for them, says Silverman. “It’s a little like free shipping,” he says. “People like having their purchases delivered to their house, but they hate paying for it.”
Following the early returns from Shoebuy’s promotion, Ifeelgoods announced that Golf Warehouse launched a promotion that rewards consumers who purchase a gift card with 25 Facebook Credits.