Maximizing Your ROI with Gift with Purchase Promotions

Smart Strategies to Make Gift with Purchase Promotions Work for Your Business

Gift with purchase (GWP) promotions are time-tested and quite powerful in boosting sales, increasing customer loyalty, and encouraging customers to spend more. For onlookers, they look like freebies, and everyone loves one. However, for businesses, they are a valuable tool that helps with marketing and boosting sales.

But while they are better than discounts (which can devalue a product), you need to plan your gift with purchase promotion well to ensure you maximize the ROI. Otherwise, it will become just any other discounted product.

Set a Strategic Purchase Threshold

Not all purchases should qualify for a gift. Otherwise, if you give out something away too easily, you’ll miss out on the chance to increase sales.

A good practice for increasing ROI is to carefully set a minimum spending requirement. The easiest way to do this is simply attaching a gift to an amount like $50 or $100. However, you can also attach it to a new product or a more expensive version of your product.

The key here is striking the right balance. You don’t want to give away products easily, but you also don’t want to make the promotion feel out of reach. Try to give extra motivation to users who wouldn’t buy a particular product or spend a certain amount.

Offer Relevant and Desirable Gifts

If your gift doesn’t attract customers on its own, it won’t make them spend more than they intended to. When crafting your giveaway campaign, ensure you select a gift that the target audience actually wants. For example, if you are in the beauty industry, the gift can be a mini version of a best-selling product. Customers will be attracted to the gift and be willing to spend more to get it for free.

Besides that, you can have your gift complement the main purchase. For example, if you are a tech retailer, you could offer a free phone case with smartphone purchases. A skincare brand can also offer a travel-size cleanser when a customer purchases a moisturizer. This will significantly increase the perceived value of the purchase.

Create a Sense of Urgency

In general, promotions are more effective when the customer feels like they need to act fast. If they believe the offer will always be available, they’ll budget it for later. Considering the goal is to make them spend more than they wanted to, encourage immediate action that invokes the Fear of Missing Out (FOMO).

One of the most effective ways of doing this is by setting deadlines to make promotions limited-time only.

Use Gift with Purchase to Move Slow-Moving Inventory

Every business has products that don’t move as quickly as expected. Instead of letting them take up valuable shelf space or head towards expiry, you can smartly move them through gift with purchase promotions.

For this to work effectively, you need to pair the product with a best-seller. Here, the gift can be any of the two products. If users don’t see the product’s real potential, getting it as a gift will be a perfect way to get them to try something they wouldn’t buy. If it’s the main product, they’ll get an incentive to try it as they’ll get a beloved product as a bonus.

Track and Optimize Performance

You’ll need to know what’s working and what’s not to maximize ROI. After launching a campaign, track the key metrics by monitoring sales and conversion rates, tracking customer engagement, analyzing customer behavior, and gathering customer feedback.

How is the sales performance before, during, and after the campaign? How have cart abandonment and website traffic changed? What are people saying about your product? You can use this information to change the gift type or adjust the threshold and urgency levels of your gift with purchase promotions.

For maximum ROI, you can partner with a promotions agency that specializes in contests and giveaways. They’ll help draft a winning formula for your campaign to ensure you hit your targets and grow your sales beyond the campaign period.