👋Hello lovely people of the D2C Community! This is your host Berkay writing.
In the 9th episode of the D2CVille Podcast, we sat down with Martha Krueger , founder of Giften Market - a Minneapolis-based online gifting platform.
After an “ugly sweaters startup” she found during her college days and a long and successful career managing a social media marketing agency, Martha found great success in Giften Market. She told us everything from $4 CAC to treating her company like a marketing agency- which is even more awesome when you think about it!
Without further ado, let me leave you with Martha’s great entrepreneurial story. Sit back, relax, and enjoy!
“The unemployable phase” Martha, Giften Market's founder, reflects on her entrepreneurial journey, which is her third venture. Her first business started during college, a phase she humorously calls her "unemployable" period. She's passionate about startups and the entire process of creating, branding, and tailoring products to fit the market.
Her first foray into e-commerce centered on the trend of ugly Christmas sweaters, a joint effort with her brother. Their sourcing and resale of these unique items garnered organic visibility on Google and even caught the attention of TV producers. This venture sparked her entrepreneurial zeal, becoming a catalyst for her subsequent undertakings.
Leading up to 2019, Martha established The Social Ligts, a social media marketing agency, which she later sold. This move paved the way for her return to e-commerce with Giften Market. The initial triumph of the ugly sweater venture stemmed from thrift store acquisitions, rummage sale finds, and witty listings on platforms like eBay. The unexpectedly high prices these sweaters fetched unveiled the world of entrepreneurship to Martha.
How it all started? Giften Market is so marketing-focused that I think just going ahead and saying we're a marketing agency for ourselves, for our own brand … is a good mindset to have. Because then I don't feel as bogged down by all the marketing tasks. Instead, I'm sort of empowered by it saying “You have so much experience here, you're good at it, you enjoy it. Let's just full speed ahead and treat this like a marketing agency.” And then, the products are almost secondary.
- Martha
Frustrated by the prevailing options and inspired by friends' struggles, she founded Giften Market, her third venture. Opting for an agile launch, she prioritized flexibility over heavy investment.
Martha's marketing background led her to excel in impactful product presentations and descriptions. This, combined with her e-commerce experience, transformed Giften Market into a marketing-driven gift retailer in the competitive 2023 landscape.
Adopting a marketing agency's mindset streamlined tasks for relevance, enabling Martha to capitalize on her strengths. While product quality remained crucial, emphasis also shifted to presentation, packaging, and effective communication of value.
The Virtual Hug Collection Data-driven choices guide their product assortment, with the "Virtual Hug Collection
Martha's emphasis always centers on customers and their needs. As an intermediary for friends, family, or colleagues sending gifts, she strives to elevate the gifting experience, ensuring it's exceptional and honors the sentiments behind each exchange.
Packaging plays a pivotal role. They've streamlined packaging with white boxes tied with navy blue satin ribbons in 12 sizes. This approach simplifies customer decisions, avoiding choice overload. Their distinctive clean packaging has become a hallmark, reinforcing trust in Giften Market's expertise.
800 individual SKUs 🤯🤯 Currently, Giften Market houses an inventory of 800 distinct SKUs on their website, all physically stocked at their warehouse. This necessitates meticulous organization, with individual items stored in bins and shelves. While primarily an e-commerce business, their unique selling point lies in their efficient packing and shipping directly from inventory.
Their product assortment is a blend of customer input and experimentation. Amid the 800 SKUs, certain items, such as versatile aromatherapy shower steamers, consistently garner favor. While universal products suitable for various occasions are available, they also offer specialized items like baby onesies with distinctive phrases or anti-nausea tea for expectant mothers.
Giften Market strikes a balance between broadly appealing and niche products, catering to diverse gifting demands. Their user-friendly gift box builder enables customers to curate personalized packages from the selection, prioritizing quality and tailored gift journeys.
Renting a physical shop just before Corona The realization of the potential of online gifting truly hit Martha during the summer of 2020. Ironically, however, she had signed a lease, amounting to $6,000 a physical retail kiosk at a local shopping mall to raise brand awareness for Giften Market in February 2020 - just before the pandemic.
$4 CAC... Whaat? Facing lockdowns and the absence of in-person shopping, Martha confronted the challenge of sunk costs and pivoted toward online sales. Despite initial disappointment, she recognized the escalating demand for online gifts directly shipped to recipients, propelling her to embrace the digital avenue.
A pivotal moment emerged in May 2020. Giften Market initiated a Facebook ad campaign, primarily targeting Instagram users. A straightforward carousel ad promoting Mother's Day gifts garnered significant traction, attracting new customers with a modest $4 ad expenditure. This campaign tapped into the need for meaningful gifts during occasions like Mother's Day, even amidst COVID-related physical limitations.
Martha managed initial growth from her home, utilizing spaces like her basement, garage, and living room. Demand surged remarkably, necessitating ad spends restrictions due to inventory limitations. This momentum endured into the summer, prompting Martha's strategic considerations for expansion.
Her focus shifted to establishing a three-party logistics (3PL) solution, securing warehouse space, and assembling a fulfillment team. This foundation allowed Giften Market to maintain momentum and prepare for a successful holiday season.
In hindsight, the pandemic reshaped Martha's plans while catalyzing her business's online expansion, solidifying Giften Market as a premier destination for thoughtful gifting.
What is it like today? B2B - B2C sales Experiences with physical pop-up shops clarified that Giften Market's core value proposition thrived in online shopping.
Giften Market adeptly balances B2B and B2C sales, with a near-even split
On the B2C front, Giften Market was born from Martha's desire to offer heartfelt gifts amid a busy schedule. Catering to time-constrained individuals valuing thoughtful gifting, they pride themselves on serving both individual consumers and corporate clients.
Minimizing overhead costs - an agile structure Giften Market has only two part-time and two full-time employees onboard, including Martha herself.
And toperational structure is agile, tailored to demand fluctuations. During the holiday season, their packing team expands to manage a surge in orders. From October to December, sales increase 4 to 5 times the daily average, requiring a larger workforce.
Beyond the holidays, technology and optimization minimize overhead costs. This enables efficient year-round operations without a large permanent staff. Collaborations with contractors and marketing partners further enhance flexibility. These contributors handle tasks without full-time employment, adapting operations while maintaining a lean structure.
They've engaged a growth marketing coach to refine strategies and partnered with an SEO blogging firm to enhance online visibility through quality content. A part-time video content creator will soon join the team, further expanding their content offerings, all aimed at bolstering their online presence.
Martha's quarterly project approach offers focus and structure. Tailored teams of experts and consultants are assembled as needs arise. Recent collaborations include outsourced developers and designers for brand and website components. Photography, vital to their business, involves various vendors for lifestyle and product shots. In-house efforts extend to social content creation, utilizing available resources like Martha's prep room and iPhone photography.
A lively vendor community Giften Market maintains robust connections with over 150 small businesses, creating a lively vendor community. They share new arrivals and achievements on social media, fostering engagement. While vendor interactions flourish, customer engagement, especially on Instagram and TikTok, offers room for growth.
The new video content creator role aims to amplify Giften Market's online presence and customer engagement. They seek to produce more content, increase awareness, and involve the audience in sharing ideas and feedback.
Behind the scenes videos brought success Interestingly, Giften Market has found behind-the-scenes content resonates strongly. Beyond standard unboxing and showcasing, candid glimpses into daily operations captivate. Demonstrations of shipping strategies during summer heat or receiving and checking carton deliveries intrigue viewers, revealing genuine efforts behind each package.
This humanizing approach aligns with their ethos of delivering thoughtful gifting experiences. As video content evolves, this blend of engaging and informative material could substantially strengthen audience connections.
Paid ads IOS privacy um settings that had a tremendous impact on our campaigns.
- Martha
Giften Market's advertising journey has been influenced by ups and downs, notably due to shifts like Apple's iOS privacy settings. Post this change, they redirected focus and budget to Google ads for high search intent and conversion potential. However, they're aware of the need to diversify beyond Google to prevent overreliance.
Finally, logistics Logistics and fulfillment have always been a challenge for Giften Market. But luckily enough, Martha loves managing this aspect of the business!
Recently, Giften Market implemented Finale Inventory, providing weekly sales velocity and days-on-hand reports for products. Transitioning from intuition and visual cues to data-driven insights has enhanced their inventory tracking.
Martha views inventory management as a blend of art and science. For events like Mother's Day, demand surges for specific items, followed by lulls until the next holiday rush. Experience has refined her approach over the years, improving her understanding of needs and timing.
During warmer months, Giften Market adapts inventory strategy, particularly for heat-sensitive products like chocolate. While they still offer chocolates with ice packs, ensuring their condition in hot weather is challenging. Consequently, summer sees a reduction in chocolate inventory, with a focus on other popular items for the holiday season.
If you reached this point, well, thank you! Please consider following D2CVille on social media and contacting us if you’d like to be a guest in one of these podcast episodes!
And if you’re based in the US and need to send a gift box quickly, visit Giften Market ! They have pretty cool stuff...
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