How Effective Is Gift with Purchase Program

People love free things, even when they don’t need them. Entrepreneurs and marketing experts noted this unusual behavioral model a long time ago, so this is not a novelty in the world of promotion. Many big brands use this type of promotion to keep their clients and buyers by offering free products and services under a specific condition.

Here are some of the most popular promotional strategies including free stuff:

If you play it right, this cost is practically insignificant, compared to benefits. Production technology has progressed a lot; manufacturers have the space to share free samples, give limited offers and promotional products, and adding extra product to your purchase. Companies have developed many methods using free stuff to get customers interested. How effectively this strategy will be, depends on many factors.

What Do You Offer as a Gift?

Whatever model they choose, the first challenge for entrepreneurs is to choose a product or service to be a gift. Certainly, the most expensive product or service will not be ‘free’ part of your offer. It is more realistic to give a cheaper item as a gift.

An unwritten rule is that companies give a product or service of less value than the one on which the company’s revenue is based. But this product must be of high quality and beneficial to consumers. This way, a manufacturer/seller can entice the customers for further actions, when they spend some money on purchasing other products of their brand.

Unfortunately, there are many bad examples in the business world, when in this way, manufacturers wanted to get rid of the stocks or expired products. This move can disappoint your clients as it shows them that you have no respect for their needs, health, safety, etc.

When to ‘Be Generous’ to Customers?

You can’t always be generous to your clients. But you have to show them you appreciate every dollar they spent on your product. So ‘treat’ them with a special gift with purchase program. You have to choose the right time of the year to do that. When it will happen, depends on how your company operates.

You probably noticed that, during the holidays, shop windows and shelves are full of these offers. Many manufacturers use rush-hours and busy seasons to promote their offers. This is an ideal opportunity for companies whose business is in a crisis to improve their balance. However, if your business goes well, then you can opt for a gift with purchase strategy; or you don’t have to use it at all.

Who Is Your Target Group?

A strategy that focuses on the wrong market is generally condemned to failure. For example, you can’t offer shaving foam as a gift with a bag of dog food. You can, but because of an undefined target group, the sale of this package will most likely not be significant.

But if you combine deodorant as a gift with perfume, this is a great way to attract the female part of the market. Along with the expensive perfume, a less expensive product like deodorant will get extra value and attracts the interest of customers who may buy it at the real price.

How to Boost Promotion of Offer?

First, physically attract the attention of clients. This relates to the aesthetics of the offer, i.e., packaging. The brand name must be visible. So buyers will know to whom to get back if they are pleased with the proposal.

Offers containing gifts must be noticeable and placed on busy places. Make an arrangement with the seller to put them at the beginning of the shelves or next to the cash register. If they don’t do this, try with some kind of incentive. In case you wonder how to motivate your business partners, check this page. The same goes for your employees, who are in direct contact with customers. You can motivate them, offering a percentage of every sale or bonuses, but only after they reach the goal.

Customers are happy because they got more for the price they have paid. The appropriate strategy and channels of distribution of this offer will bring success to your promotional campaign. Customers want brands to perceive and respect their needs, which they will reward with loyalty.

Related Articles