Can a Gift with Purchase Boost Your Sales?

When sales and marketing leaders are looking to boost sales, discounts and buy-one-get-one-free (BOGO) offers often come to mind. While these may be effective some of the time, they are expensive and cut into profit margins. A gift-with-purchase program is affordable and can boost your sales.

Offering a gift with purchase is a proven way to increase sales. Most people believe that they make buying decisions based on a rational comparison of product features and benefits. In fact, most buying decisions are based on emotion. When a consumer has positive feelings toward a supplier or a product, they are more likely to choose that supplier or brand. Creating a reward system or offering a gift triggers an emotional response in the buyer.

Gift-with-purchase programs were pioneered in the cosmetics industry in the 1950’s by Estee’ Lauder. This revolutionary marketing strategy was quickly adopted by others and remains a staple in the cosmetics industry. The gift-with-purchase strategy continues to be effective across many industries today.

Gift cards are popular in some gift-with-purchase offers however merchandise gifts often provide a higher-perceived value to the recipient and a lower cost to the sponsoring company. For example, a $25 gift card often costs $25 and may require additional fees. A customized bag with perceived value of $25 to the consumer may cost the company only $10-12 total.  

Benefits of Using a Merchandise Gift-with-Purchase Strategy:

• Differentiates your product and your company from your competition
• Easy to advertise and promote – creates excitement
• Encourages immediate purchases (“while supplies last”)
• A tangible gift with logo will mean additional advertising for your brand
• Creates customer loyalty
• Increases sales!

Gift-with-purchase campaigns can also help to increase the average order size. When the purchase amount is set just slightly higher than the average product price, consumers will purchase more to receive the gift with purchase.

Selecting your Gift with Purchase

The gift that you select for your promotion should be carefully selected so that you receive additional value beyond the sales during the promotional period:

• Choose a gift that is a good brand match. If you are selling a luxury item, make sure the gift is of the highest quality and value.
• The gift may also support your marketing messages. If you are offering a “full coverage” solution, an umbrella may reinforce that message.
• Imprint, engrave, emboss or otherwise identify the gift with your company logo or brand. Every time that consumer uses the product, you’re receiving residual advertising.
• Choose something simple and useful. Apparel or other items that are sized will be difficult to manage. Choose an item that will be universally popular and useful to your audience.
• Make it attractive. Choosing a current design or merchandise gift that is trending will be irresistible to your customer audience.

Partnering with an experienced professional to help you design an effective gift-with-purchase program will ensure that you get the maximum value from your campaign. Contact us today to get started!