Gift with Purchase Promotions: A Winning Sales Strategy

Why Gift with Purchase is Effective

We all love a free gift, and with the world of e-commerce and retail being ultra-competitive, lots of businesses have perfected the art of attracting new customers with Gift with Purchase (GWP) promotions. This is a strategy where a business offers customers an extra incentive to make a purchase, which can be a free product or an exclusive item/service.

While the concept has been around for a long time, it has unlocked new levels of marketing in the online world and proven quite effective. Here’s why the strategy is a winner for both brands and customers.

The Effectiveness of Offering Gifts with Purchase

Gift with Purchase promotions tap into several psychological triggers to entice customers to make a purchase.

🌟 Increased Perceived Value

Psychologically, we are wired to seek out the best deals. When a customer is offered a gift for making a purchase, they immediately feel like they are getting much better value than they expected. This makes the product much more enticing and enhances the chances of the customer making the purchase.

⏳ Creates Urgency and Exclusivity

GWP promotions only last for a short time. This creates a sense of urgency for the customer as the chances of missing out are high. There’s also a sense of exclusivity since only a few customers can benefit before the gifts run out or the time expires.

This encourages the customer to act quickly to secure the gift, creating a sales boost for the business.

🛒 Encourages Larger Purchases

Customers are usually hesitant to make big purchases and tend to think about them more than smaller purchases, even when they have the money. Gift with Purchase promotions help overcome this hesitation as they reduce the feeling of “loss.” In cases where the gift is based on hitting a certain threshold, customers are also incentivized to spend more as they’ll get a gift that increases the value of the purchase.

🤝 Strengthens Customer Loyalty

Besides a sales boost, a GWP promotion is quite effective at building brand loyalty. First, it can help introduce new users to your product or brand. The gift will also help customers feel that you value their business, so they are more likely to return for future purposes.

Tips for Running a Successful GWP Campaign

Running a successful Gift with Purchase (GWP) promotion will require you to do proper planning and execution.

🎁 Choose the Right Gift

The gift is what will bring the added value, so it should be something that complements the main product being purchased. It doesn’t have to be expensive, but it needs to be relevant to your brand and feel valuable to the customer. If it’s a limited edition or a branded product, even better, as this creates exclusivity.

📢 Promote Your GWP Effectively

You need the promotion to reach as many people as possible, even if only a few will benefit. Promote it on different channels, especially on social media. Ensure the promotion banners are appealing and encourage users to share the campaign or tag friends. Note that the promotion should begin even before the campaign.

📜 Set Clear Terms and Conditions

Like any other promotion, it’s important to ensure the campaign runs smoothly and there’s no customer confusion. Set clear terms and conditions that outline the rules of the promotion, including whether it’s a limited-time offer or while supplies last.

🔒 Limit the Offer to Create Demand

Limiting the offer is a core part of the GWP promotion, so ensure you limit the time or the gifts. This will create scarcity and tap into people’s FOMO (fear of missing out) to make them purchase the item sooner rather than later. It will also help you manage your inventory without issues, ensuring you are in control of the promotion.

If you don’t know where to start, you can always engage a promotions agency as they know the in-and-outs and can help you come up with the best strategy for your business.