Gift with Purchase (GWP) campaigns are tried and tested promotions to attract customers and increase average order value. Businesses usually offer this in the form of a free item upon the purchase of a qualifying product or service. This strategy can help brands drive sales, improve brand awareness, and boost customer loyalty. In this article, we’ll explore the concept of GWPs, how to choose the ideal gift for your campaign, and creative ideas to help increase your profits.
What’s the Concept of a Gift with Purchase?
A Gift With Purchase is simply about offering customers freebies for adding specific items to a cart or reaching a spending target. These freebies are generally selected to complement the main products and motivate customers to buy more. GWP promotions help businesses increase sales, strengthen customer loyalty, and encourage repeat purchases.
Choosing the Perfect Gift for Your Campaign
If you want your customers to spend more money with your brand, your gift items must be engaging and compelling to move them to do so. Likewise, you also want to ensure giving out these gifts helps your brand maintain a healthy profit margin.
So what are the key factors to consider in selecting the ideal GWP item for your campaign? Let’s find out:
● Target Audience
Your GWP campaign can not make headway if you don’t know who you are trying to reach – otherwise known as target audiences. Identify who will buy your product and choose a gift that aligns with their interest and needs.
● Relevance
Giving your customers gifts that are relevant to them at that exact time is the dream of every business. Customers are happier, and their lives simpler, when you offer them relevant and complementary items with purchase. However, you must find a balance to ensure the gifts align with your brand. Getting this right will skyrocket your engagement.
● Perceived Value
Perceived Value describes the worth that customers place on a particular product. Improving the perceived value of your product by offering thoughtful, desirable, high-quality gifts can transform your business. Remember, customers see your gift offering as a reminder of how much you value them.
● Cost-Effectiveness
Cost-effectiveness in choosing your gift is to ensure the cost of the gifts compares favorably with the expected sales increase to guarantee profitability.
● Exclusivity
Everyone wants that special gift. Using limited-edition GWPs can create urgency and prompt your customers to make purchasing decisions out of the fear of missing out on the limited opportunity.
10 GWP Ideas for a Money-Making Campaign
1. Branded Merchandise
Branded merchandise are promotional items bearing your brand’s logo or tagline. These items include T-shirts, mugs, tote bags, etc. Using these items as your Gift with purchase helps enhance customers’ interaction with your brand and improve brand visibility.
2. Limited-Edition Products
Limited edition GWPs have this inherent air of exclusivity and rarity around them. They create a sense of urgency and motivate customers, who crave that VIP feeling, to take action so they don’t miss out.
3. Sample-Sized Products
Offering sample-sized versions of your products as GWP is an effective way to increase exposure. It gives customers a taste of what’s to come and allows them to try new items. They’re also an effective way to introduce existing customers to different products and potentially raise your customer base of repeat purchases
4. Complementary Accessories
Design your GWP to complement the use of your primary product. This works well if the primary product is new and the complementary gift shows how best to use it. For instance, you can gift a phone case upon the purchase of a phone or a designer zip when a laptop is purchased.
5. Partnered Products
Co-branding collaborations have the most impact when similar brands work together. You can collaborate with similar brands to offer a co-branded GWP. This can help you extend your reach and leverage the other brand’s audiences.
6. Digital Products
Offering digital products such as downloadable content like e-books, or software as GWPs helps you provide value to your customers without incurring the cost of physical production.
7. Gamification Elements
Gamification means using game mechanics and design techniques to increase customer engagement and motivation. You can include gamification elements such as mystery boxes or scratch cards for your GWP. This gives the campaign an element of surprise and makes the shopping experience more fun.
8. Personalized Gifts
Personalization adds a special touch to your gifts. It makes them unique and memorable. Offering items that can be customized shows customers that you put thought and effort into the selection. This can strengthen relationships and create lasting memories.
9. Personalized Gifts
Offering sustainable products changes the way customers perceive your business. Making sustainability a priority in your GWP, helps you appeal to environmentally conscious customers and create a lasting impression of your brand image.
10. Experiential Gifts
Experiential gifts are gift experiences tailor-made to suit your customers’ personalities. You can provide experiences such as free classes or workshops. Making these special offers creates memorable customer experiences and enhances brand loyalty.
Conclusion
Customers are happier with brands that try to connect with them. Gift with Purchase is a powerful tool for acquiring new customers and strengthening relationships with existing ones. Carefully selecting the right gifts and strategically planning your campaign helps create a win-win situation where customers benefit more from their purchases while your brand gains more profits and an enhanced brand image.
FAQ
What is a GWP item?
—A GWP item is a free item offered on the condition that a customer buys a higher-value product or reaches a spending target.
What is an example of a gift with purchase?
— An example of a gift with purchase is a beauty brand offering a free makeup bag when a customer buys a set amount of skincare products.
What does purchase as a gift mean?
— Purchase as a gift means buying an item to give to someone as a gift. It doesn’t necessarily relate to GWP.
What are examples of gifts?
— Gifts can be items like clothing, accessories, electronics, or experiential gifts like concert tickets or spa treatments.
Does gift with purchase work?
If you want to plan, design, and execute a successful GWP campaign, you can start by talking to us at UCT (Asia). We offer a range of marketing solutions including campaign management, product sourcing, and premium promotional materials production.
Together we can build a tailor-made solution that meets your brand needs.
