‘Gift with Purchase’ is a popular promotional technique. It is also referred to as a premium promotion, in that the customer receives something in addition to the main purchase.
There are many benefits to running a ‘gift with purchase’ campaign:
- Shoppers are faced with an extra incentive to purchase a particular product/service
- The retailers hosting the promotion usually experience increased sales
- Increased brand loyalty
- Creates repeat purchases
Running a premium promotion is an excellent way to distinguish your brand from your competitors. Customers who avail of the promotion should be encouraged to share their experience with friends via their online presence, naturally word of mouth will follow. The retailer is seen as offering an added value proposition and this can create loyal and repeat customers, whilst also gaining the trust of the customer. A successful gift with purchase campaign can create a clear competitive advantage for your business.
If executed correctly these types of promotions can make products jump from the shelves. Utilising POS displays and in-store advertising can really drive home the message to your customers that they are benefiting by receiving a free gift.
By defining a limited production run you can create a sense of urgency amongst your customers, enticing them to make impulsive purchase decisions.
Here are some steps to follow when planning and launching a ‘Gift with Purchase’ campaign:
Determine your Objectives
Having a clear defined path which distinguishes what you plan to achieve from your promotion is essential. Whether your aim is to sell old stock to clear up warehouse space or to build brand loyalty, you must be able to clearly focus on the steps involved in your campaigns success.
Choose your Free Gift Wisely
Another key to success is picking the right gift to offer your customers. You should focus on providing items that are relatable to your brand or complimentary to the main product purchased. An example is offering a free (branded) mug when you purchase three bags of coffee. Your offerings must also be manageable, i.e. an appropriate size so that storage and storage location is not an issue.
Your Offer must be Clear
You must present the customers with a clear and concise message. The promotion dates, qualifying products and details of how to claim need to be clearly communicated to the target audience.
It can help to create a ‘3 step process’ in order to demonstrate what exactly the customer needs to do before they qualify for the free product. Include terms & conditions and avoid confusion at all cost.
Promote your Campaign
Just because you have taken the time to plan and implement a gift with purchase promotion, there is no guaranteed success. Advertising your promotion is an essential part of running a successful campaign. Advertising should take place across all necessary channels as getting the word out is essential to increase the uptake of your campaign. In-store advertising through flyers and posters are an effective way to target customers who are already in store. Email send-outs, advertising through social media and engaging in share campaigns are a great way to build hype around your promotion.
Measure your Success
When your campaign is finished it is crucial to be able to measure its success. This can often be the hardest part of any campaign. Indications of how well your campaign was received will provide information that you can use to determine whether to continue or cancel the promotion. Should you increase or decrease production? Should you run the same promotion again?
Measuring success can be done by a comparison of sales before, during and after the promotion. If the promotion is being launched in-store you can compare footfall. Online advertising campaigns can be measured by ‘click-through’ rates and interactions.
Why engage with Sales-Promotions?
In addition to implementing the validation process and customer service aspects of your promotion, Sales-Promotions can source, securely store and distribute the chosen gift with purchase products. Thereby providing you with a complete end-to-end service partner.
Here at Sales-Promotions we offer a wide range of promotional platforms, campaign software and consultancy services which are designed to match your business needs. We specialise in creating engaging and cost-effective promotional campaigns which differentiate your brand, increase your revenue and strengthen your market position.