Picture this: a marketing tactic that incentivises customers to shop more, all while boosting your brand’s image and increasing brand awareness. It’s called Gift with Purchase (GWP), and we’re here to explain it for you.

What’s in the Box?

A Gift with Purchase campaign cleverly rewards customers with a freebie when they meet specific criteria, such as reaching a spending threshold or purchasing particular items. Imagine travel-sized treats, branded goodies, or exclusive first looks at new products. This is also known as a “premium.” Through a gift with purchase promotion, customers receive a free product, which can lead to increased average order values and repeat purchases.

But how does it work, and why is it so effective? Let’s find out.

Why GWP Works Like a Charm

In a nutshell, it’s simple: everyone loves getting something extra. GWP campaigns make customers feel like they’re scoring a deal and can turn them into loyal fans of your brand. Gift with Purchase campaigns are more than just a gimmick; they genuinely work. Customers appreciate promotional gifts 2.4 times more than their cost to sellers (Hudik, Karlíček, & Říha, 2023). By offering a free gift with purchase, your business can create a positive experience that drives sales and loyalty.

But what drives this positive response? The answer lies in the psychology behind GWP campaigns.

Let’s dig deeper.

The Psychology Behind GWP Campaigns

Gift with Purchase campaigns work wonders because they cleverly tap into the psychological factors that drive customers’ behaviour. Let’s explore the main elements that make GWP campaigns so irresistible:

  • Desire for Rewards: We’re wired to love rewards. When customers see they can score a free gift with their purchase, they’re more likely to buy. And that’s how you create loyal fans!
  • Exclusivity: Customers crave that VIP feeling. Limited-edition or exclusive gifts create a sense of urgency, motivating customers to take action before it’s too late.
  • Perceived Value: Boost the value of a purchase with a free gift. It’s a win-win situation when the gift complements the main product, increasing satisfaction and loyalty.
  • Reciprocity: The good ol’ “scratch my back, I’ll scratch yours” principle. Customers who receive a free gift feel compelled to reciprocate the gesture in some way, like making another purchase or spreading the word.
  • Endowment Effect: Ownership increases value perception. When customers receive a gift, they value the main product more, boosting the appeal of your gift with purchase campaign.

Understanding these psychological factors can help you optimise your GWP campaigns for different customer types.

How GWP Promotions Could Work For You

Add Value, Increase Turnover

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Optimising GWP Campaigns: Tailoring Promotions for Different Customer Types

To maximise the effectiveness of your GWP campaigns, it’s essential to consider the needs and preferences of various customer segments. While there are many types of customers, here’s some ideas on how to optimise your campaigns for high spenders, new customers and loyal fans:

  • High Spenders: Offer high-quality, exclusive gifts that elevate their shopping experience. Consider a tiered GWP system for even more spending motivation.
  • New Customers: Create a memorable experience by offering gifts that showcase your brand’s best. Keep the redemption process simple for a smooth first impression.
  • Loyal Customers: Reward their loyalty with gifts that complement previous purchases or provide early access to new products. Bonus points for a loyalty program that incorporates GWP campaigns!

Remember, it’s crucial for each business to take the time to consider who they are targeting to create an effective GWP campaign.

Sustainability and Social Responsibility in GWP Campaigns

Today’s customers are eco-conscious and socially aware. So, why not make your GWP campaigns environmentally friendly and ethical too? Here are some ideas:

  • Reusable Products: Offer waste-reducing gifts, like reusable bags or water bottles.
  • Recycled and Sustainable Materials: Choose gifts made from recycled, upcycled, or sustainably sourced materials.
  • Charitable Causes: Partner with charities and incorporate social responsibility into your GWP campaigns.
  • Local Artisans and Fair Trade: Collaborate with local artisans or fair trade organizations for unique, handcrafted gifts.
  • Educational Materials: Provide gifts that educate customers about sustainability or social issues, like books or documentaries.
  • Minimal Packaging: Opt for minimal, recyclable, or biodegradable packaging for your GWP gifts.
  • Transparency and Accountability: Share information about your eco-friendly and ethical efforts with your customers.

In addition to these green and ethical considerations, it’s crucial to address legal and regulatory aspects when planning your GWP campaign.

Case Studies: GWP Campaigns that Nailed It

Let’s dive into three real-life examples of Gift with Purchase campaigns that made a splash across various industries. We’ll analyse what made them successful and how they can inspire your own GWP strategy.

Boosting Market Share and Brand Awareness

  • Company: Corel
  • Product: CorelDRAW Graphics Suite
  • Territories: 29 Countries
  • Duration: 4 Weeks

Corel aimed to increase its market share and drive brand awareness throughout Europe, New Zealand, and Australia. The company offered a free add-on software package to customers who purchased the CorelDRAW Graphics Suite X6 product.

Success Factors:

  • Relevant and complementary gift: The free add-on software perfectly complemented the main product, increasing the perceived value.
  • Simple redemption process: Customers easily claimed their gift by visiting a promotional URL, completing a claim form, and uploading proof of purchase.
  • Global reach: The campaign spanned 29 countries, boosting brand awareness in multiple markets.
  • Timely data tracking: Corel tracked all data allowing them to measure the campaign’s success and make informed decisions.

Navigating to Success with Gift With Purchase

  • Company: TomTom
  • Product: Rider 410
  • Territories: 9 Countries
  • Duration: 3 Months

TomTom sought to gain market share across selected EU countries for their new Rider 410 GPS navigator. An engaging Gift with Purchase campaign offered customers a free Car Mounting Kit with their purchase.

Success Factors:

  • Useful and practical gift: The Car Mounting Kit provided added utility for customers, enhancing their experience with the GPS navigator.
  • Streamlined claim process: Customers claimed their free gift by visiting the promotional page, completing a form, and uploading proof of purchase.
  • Targeted approach: The campaign focused on specific markets, enabling TomTom to reach its desired audience.
  • Strong branding: TomTom’s GWP campaign reinforced the brand’s reputation for high-quality products and customer support.

Capturing Success with Gift With Purchase

  • Company: Panasonic
  • Product: Lumix G
  • Territories: Spain, Netherlands, Czech Republic, Hungary, and Poland
  • Duration: 2 Months

Panasonic aimed to promote the Lumix G camera range across Europe without negatively affecting the product’s perception or price point. The company offered free Adobe software, widely used by photographers, as an additional incentive for a limited time.

Success Factors:

  • High-value, industry-relevant gift: Free Adobe software appealed to photographers, adding value to the Lumix G camera purchase.
  • Easy claim process: Customers visited the campaign’s landing page, filled out a claim form, and uploaded proof of purchase to receive their free software.
  • Time-limited campaign: The short duration created a sense of urgency, driving sales within a specific time frame.
  • Strategic partnership: Panasonic’s collaboration with Adobe showcased a willingness to work with leading industry partners, enhancing the overall perception of the Lumix G product line.

These case studies demonstrate the power of well-executed Gift with Purchase campaigns. By offering relevant, high-value gifts and ensuring a seamless redemption process, you can supercharge your brand and keep customers coming back for more.

Master the Art of GWP Promotions: The Bare Necessities

As we’ve explored the various aspects of Gift with Purchase campaigns, it’s important to keep some key principles in mind to ensure your campaign’s success. To make it easy for you, we’ve summarised some tips in this section.

  1. Pick the Perfect Present: Make sure your freebie matches your brand and appeals to your audience. Complementary products, branded swag, and new product samples are all winners.
  2. Tailor to Different Customer Types: Optimise your campaign for high spenders, new customers, and loyal repeat buyers.
  3. Balance Value & Cost: Your gift should be valuable and budget-friendly. Consider the potential sales boost and customer loyalty it could generate, and make sure it aligns with your goals.
  4. Crystal-Clear Rules: Avoid confusion! Be super clear about how customers can snag their gift. Minimum purchase? Specific products? Make sure they know the drill.
  5. Promote. Everywhere.: Email, social media, in-store signage – hit ’em from all angles to boost visibility and reach more potential customers.
  6. Data Collection Goldmine: Use your GWP campaign to gather customer info, like email addresses and product preferences. It’ll help you tailor future campaigns and keep ’em coming back for more.
  7. Legal and Regulatory Compliance: Stay on the right side of the law. Be aware of tax implications, consumer protection laws, and industry-specific regulations for a smooth campaign experience.
  8. Measure, Adjust, Repeat: Keep tabs on your campaign’s success. Analyse sales, feedback, and channel metrics, then tweak your approach for even better results next time.

With these essential tips in mind, you’ll be well-equipped to create a winning GWP campaign.

Wrap It Up

Gift with Purchase campaigns are a killer marketing tool that can increase sales, build loyalty, and help you learn more about your customers. Choose the right gift, promote it like a pro, and use your data wisely to keep your marketing game strong.

Ready to launch your GWP campaign? Let’s do this!