Promotional strategies are an attempt by business owners to communicate, convince, or influence customers’ decisions. Nearly all businesses use some type of promotion. Since business objectives differ greatly, promotional strategies also vary.
If your goal is to prompt a response from your target audience to increase sales, spread awareness about your brand, and build a base of loyal customers, then consider using the Gift with Purchase (GWP) strategy.
Understanding the Concept of GWP
The gift-with-purchase strategy—a sales promotion in which a brand offers customers a free item when they make a certain purchase or meet a spending target—is based on reciprocity. People naturally feel the need to return kindness or generosity. When a brand gives a gift with a purchase, it encourages the customer to reciprocate by making a purchase.
Additionally, GWP marketing takes advantage of scarcity and exclusivity. By offering a gift for a limited time or in limited quantities, businesses can create a sense of urgency and exclusivity, motivating customers to purchase before the offer ends.
Benefits of a GWP Marketing Strategy
Implementing a gift-with-purchase strategy can be advantageous for your business in several ways:
- Boosted Sales and Revenue: GWP promotions can greatly boost your sales and revenue by increasing the average order value and encouraging impulse purchases. Customers are more likely to spend more when they know they’ll get an extra item or experience for free.
- Enhanced Customer Satisfaction: Offering a free item creates a positive customer experience that leaves a lasting impression and promotes customer loyalty.
- Expanded Customer Reach: GWP promotions can attract new customers enticed by the added incentive. This can expand your customer base and increase brand awareness.
- Boosting Brand Visibility and Awareness: GWP promotions are a great way to increase brand exposure by making your brand stand out and stick in people’s minds. For instance, a beauty brand giving away a free branded makeup bag can turn customers into walking billboards for their products. This heightened exposure can result in greater brand awareness and solid market presence.
Developing an Effective GWP Strategy
You can follow these steps to develop an effective GWP strategy:
Set Your Objectives
As with any marketing strategy, it’s important to start by clearly outlining the goals and targets for your gift with purchase promotion. For instance, you could aim to:
- Draw more customers to your store
- Boost sales in-store while keeping margins steady
- Clear out slow-moving inventory
- Highlight a specific product category
- Introduce a new product
Identify the Target Audience
It’s much simpler to grab the attention of your target audience when you know exactly who you’re trying to reach. Knowing them helps you focus on what they want and need. You understand the relevant gift items and tailor your offering to appeal to them.
Choose the Right Gift
After establishing your objectives and target audience, the next step is to consider the product. Ensure that your gift complements the primary product and that your customers will find it valuable and exciting. Your gifts should enhance your customers’ shopping experience and make them more likely to choose your brand again.
Communicate Promotion Details
After establishing your objectives and target audience, the next step is to consider the product. Ensure that your gift complements the primary product and that your customers will find it valuable and exciting. Your gifts should enhance your customers’ shopping experience and make them more likely to choose your brand again.
Communicate Promotion Details
Effective communication is key for establishing clear expectations. It is important for your customers to easily grasp what is being offered and how they can benefit from it.
When promoting your special GWP offer, provide information on the promotion period, eligible products or purchase types, the nature of the free gift, and any restrictions on the gift. Use simple language and display high-quality product images to make your offer easier to understand. Your communication should make it effortless for customers to learn about the free gift without confusion.
Market Your GWP Offer
Once you’ve finalized the details of your offer, it’s important to spread the word across all your communication channels. The aim is to ensure your offer reaches the target customers at the right time. Use various channels such as social media, email marketing, in-store displays, and your website.
Monitor Inventory
It’s important to manage your gift supplies carefully to avoid disappointing customers by running out of free gifts too soon. A GWP promotion can boost demand for your product, especially if customers have to buy specific items to qualify for the gift. Ensure you have sufficient inventory of both the main product and the freebies throughout the promotion.
Track Your Campaign Progress
It’s important to monitor the performance of your GWP campaign by analyzing data and analytics. Before launching the campaign, assess the sales of the products and then monitor any changes during the promotion.
You can also keep track of new site visitors who come across your brand through the campaign, which helps increase brand awareness even if they don’t take advantage of the offer. Analyzing the data this way will help you gain valuable insights from the promotion, enabling you to tailor your future efforts better.
Common GWP Mistakes to Avoid
Here are common mistakes you need to avoid as you plan and execute your GWP promotion:
- Giving Low-Value Gifts: Customers are not as interested in gifts that are seen as low-value.
- Making Promotions Too Complicated: Clear and simple communication is key for a successful GWP campaign.
- Not Paying Attention to Post-Purchase Experience: Make sure customers have a smooth and positive experience after their purchase to keep them happy.
- Disregarding Customer Feedback: Listen to customer feedback to find ways to improve and enhance future GWP offers.
In the End
Gifts with Purchase promotions are an excellent way to boost brand recognition, increase sales, and build customer loyalty. Customers love getting rewards, and brands can provide them with free items, premium branded merchandise, gift cards, and other incentives in return for their purchases. These promotions also allow brands to gather valuable customer data for future business strategies and marketing efforts, paving the way for continuous growth and success.
Harness Our Creativity at UCT (Asia)
UCT (Asia) helps brands drive sales by creating marketing campaigns like gift-with-purchase promotions. We also help brands organize contests, sweepstakes, loyalty programs, etc. Contact us now for professional guidance and support with your upcoming GWP campaign.
