Every business wants to make sales. But sometimes, making sales is more complicated. This is why business owners are always looking for effective marketing strategies to help them increase sales and take their brands to the next level. Of those frequently used by brands, the Gift-with-purchase strategy remarkably stands out!
GWP is a sales promotion strategy in which businesses entice customers with a free gift on the condition that they purchase a larger value product or spend a certain amount of money. This strategy is a tried and tested strategy used by brands in different industries, from fashion, spirit and beverage, electronics, and cosmetics to increase sales and build a base of loyal and happy customers.
How Does it Work?
To understand how GWP works you need to understand the concept of added value in marketing. This concept involves enhancing a product or service to increase its value and make it more attractive to customers. Here’s a step-by-step breakdown of how GWP works:
Identify the Target Audience
● Identify the Target Audience
In marketing, reaching everyone at the same time is impossible. This is why you must identify the group of consumers most likely interested in your products and focus your marketing campaign on them.
● Choose the Right Gift
Identifying your target audience will help you select the perfect gift based on their preference. Your gifts should be relevant and attractive to your target audience. The gift should complement, not overshadow, the main product.
● Set Clear Terms
Set clear terms for receiving the gift to avoid customer confusion. Define the spending target, the time frame of the promotion, if any, and the reward.
● Promote the Offer
You could be making the best GWP offer, but if you don’t promote it properly, who will know about it? Leverage platforms such as emails, social media, and pop-up displays to market your GWP offer.
● Deliver the Gift
Ensure that you deliver on your GWP promise. Delivering on your campaign promise is the foundation for trust and credibility.
Examples of GWP in Marketing
Spirit and Beverage: Brands like Aperol sometimes offer free bar equipment and glassware upon purchase of their main products. This adds value to their products and helps to build a base of happy and satisfied customers.
Beauty and Cosmetics: Brands in the beauty and cosmetic industry also run GWP campaigns. For instance, Estèe Lauder often runs GWP promotions offering customers mini skincare products upon purchase of a full-sized product. Campaigns like this increase the product’s perceived value and motivate customers to try other products from the brand.
Electronics: Brands like Apple offer free accessories such as chargers and headphones, with a purchase of a specific amount. These items add value to the brand’s premium products and improve customer satisfaction.
What are the Benefits of Gifts with Purchase?
Here is a list of fascinating benefits of using a GWP campaign:
● Increased Sales
From a business standpoint, a well-executed GWP is a cost-effective method of maximizing sales without selling your brand short. It generates lots of interest in your business and will likely inspire immediate sales by enticing customers to purchase to qualify for the gift.
● Enhance Customer Loyalty
A GWP promotion can also successfully give you an advantage over competitors; the free item could motivate the customers to switch from another brand to yours. Remember, happy customers are loyal customers.
● Brand Awareness
A thoughtful gift to new and existing customers can make your brand ever-present in their day-to-day lives. As customers use your gift items, they will become walking billboards for your brand, improving brand awareness.
● Inventory Clearance
GWP presents an ideal opportunity to turn some slow-selling products into profit. This is done by bundling these products as gifts with other popular purchases. It’s also an opportunity to make room for new items.
● Customer Satisfaction
Customer satisfaction gauges how happy your customers are with your product or service. And for obvious reasons, it could prove the difference in the success of a business. A gift with purchase can improve your customer’s overall shopping experience, making them happy and positioning your brand to benefit from their positive word-of-mouth testimonies.
Top 3 Gift with Purchase Ideas
- Branded Merchandise: These simple, everyday items can be transformed into powerful marketing tools. Using items such as T-shirts, keychains, and tote bags, featuring your brand’s logo can go a long way in boosting your brand awareness and visibility, strengthening customer loyalty, and making a long-lasting advertising impact.
- Complementary Products: Complementary products complete or add more value to your primary products or services. For instance, you can offer a free scarf with the purchase of a coat or a free mug with a coffee machine. This strategically gives you an edge in the competitive market.
- Limited Edition Items: These are a huge selling point that creates a sense of urgency and desirability. You can offer exclusive separately to boost demand and impulse buying.
GWP FAQ:
What is GWP for Dummies?
— Gift with Purchase (GWP) is simply a promotion to attract customers and increase sales by offering a free gift upon spending a certain amount or buying a particular product.
Who Started Gifts with Purchases?
— The origin of gift purchase campaigns dates back to the mid-1990s in the beauty and cosmetic industry, with Estée Lauder widely considered the pioneer of this strategy.
What is Proof of Purchase for a Gift?
— Also known as a gift receipt, this special receipt is specifically used for gift-giving. It usually shows the item purchased and the date but excludes the price. Businesses also use this receipt to make the return or exchange of the item easier.
Why is Estée Lauder So Successful?
— Estée Lauder’s success can be attributed to a combination of factors. These factors include having a strong brand image, investing in a wide range of new and innovative products, and building a strong relationship with retailers.
Seize This Opportunity with UCT (Asia)
At UCT (Asia), we understand the power of GWP in improving your sales and satisfying your customers. Our expertise in creating and implementing GWP strategies can help your gift purchase campaigns stand out. From boosting brand awareness to clearing inventory, or enhancing customer loyalty, we have solutions tailored to meet your needs. Contact us today to learn how we can help you seize this opportunity and drive your business forward.
