The gift with purchase marketing strategy is one of the oldest and most successful marketing strategies around. While the products or services you sell might be the best in the market companies that offer that little extra increase the perceived value of competitors. Throwing a decoder ring or prize in a box of cereal or Cracker Jacks is an easy way to create extra excitement in purchasing your product. As old as the strategy is, it is still winning by offering something extra to consumers.
Developing The Gift With Purchase Strategy
Strategies don’t develop themselves and take some planning, thought, and research to understand consumers. You need to know how your product or service is perceived by your customers and how, when, and where to best reach them.
Gift With Purchase Concept Considerations
For a successful gift with purchase campaign ensure that:
- There is an appropriate budget allocated
- The gift is right for your target audience
- You use brand name gifts when appropriate
- The gift will promote more usage of your product
- Gift with purchase is going to achieve your promotion objectives
- Logistics are in place to get the gifts to your locations
Following this list will help you create an effective gift with purchase promotion and enjoy greater return on investment. Position your brand, products, or services better with thoughtful gift with purchase promotion design.
Gift With Purchase Strategy Planning
Before you go out and just choose a duffle bag to throw at customers consider some of the following important issues. They will help you ensure that the program has a razor sharp edge and will increase sales, generate a buzz, and get people excited!
Identify Objectives For The Program – Ensure that you know what the gift with purchase program is going to help you accomplish. Are you trying to reach a new demographic? Maintain market share? Revitalize sales from a slump? It is important to identify the primary objective for each gift with purchase promotion. This makes it easier to design, implement, and measure success.
Choose The Gift Wisely – A free purse with purchase of a jackhammer doesn’t really work, so consider what will match and encourage use of your product. The right gift with purchase gift will appeal to your target audience, increase the perceived value, and reinforce the use of whatever it is you sell. A great example of gift with purchase would be a set of riding gloves or kneepads with purchase of a motorcycle. Think about how the gift will be relevant for your demographic and provide unmistakably higher value.
Budget For Expenses – Every business decision needs to be budgeted for and gift with purchase is no different. Consider carefully consider how much of your revenue you can afford to dedicate to your gift with purchase program. While there is no one-size-fits-all solution all gift with purchase budgeting should be done in anticipation of increased sales, but not hang the future of the company on such an event. Budgeting should cover the cost of the gifts, logistics in supplying your locations, and the hiring of a gift with purchase Agency.
Hire A Gift With Purchase Agency – For larger companies or of smaller businesses that don’t have a lot of employees hiring a gift with purchase Agency makes a lot of sense. Sourcing the gift to give away with purchases, getting it to your locations, and even taking your brand on the road with experiential marketing is the job of an agency. Many of today’s consumers are best reached at live events and live interaction assisted by gift with purchase is a winning combination.
Detail The Details – Know who is responsible for each part of the program and when things are meant to happen. Get solid confirmation from everyone involved that they in fact have the program scheduled and know what they are responsible for. Generally gift with purchase are limited time offers that take advantage of seasons and holidays. Back to school is a great example of a gift with purchase opportunity. Planning to have everything in place at locations and all POS graphics will lead to greater success.
Get Staff & Partners Excited – Everyone involved in supplying, supporting, and carrying out the gift with purchase needs to be excited and ready to share that excitement with consumers. We all know that it isn’t just what you say, it is how you say it. Educating your staff on the requirements to get the gift with purchase and sharing their excitement will help spell success for your gift with purchase promotion.
Measuring Program Success – Make sure that you know how you will measure success for your program. If you know that year to year you sell a certain quantity of products you will compare how many more units you sold when using a gift with purchase program. Month to month comparisons are also useful so long as your market isn’t heavily influenced by weather, holidays, or other seasonal considerations.
Watch for the following elements to measure the success of your gift with purchase program:
- Sell through rate is faster
- Increased customer excitement
- Increased frequency of visits and purchases
- Employee and retailer excitement about offer
Watching for these makers of success will help you ensure better program development in the future and increased return on investment for all of your marketing efforts. Understanding your demographic and consumers is the key to better product development, placement, and ultimately more sales.
Types Of Gift With Purchase Programs
There are 4 main categories of gift with purchase programs, gift coupons, sweepstakes, continuity programs, and self-liquidators. Each of these have various investment costs so it is important for companies to choose one that fits their budget and objectives. These are some of the methods that companies take advantage of to keep costs down.
Gift Coupons – These coupons can be for money off of higher priced but valuable products and services. The coupons in these cases help consumers enjoy the finer things after purchasing your product at a discounted price. Popular coupons include things that everyone wants such as discounted airfare, hotel stays, or holiday gift certificates like a ham gift certificate or turkey gift certificate.
Sweepstakes – Giving a gift with every single purchase of a specific product is expensive and can cut into the bottom line. Companies on a tighter budget use sweepstakes to offer the potential of a select few winning greater value prizes. This encourages purchases for participation in the sweepstakes to get a chance to be one of the lucky winners. Many times these prizes are much more valuable than compared to the gifts that chosen for giving with each individual sale. This works because consumers likely already want or need your product and a chance to win is many times enough to close the sale.
Loyalty Gift Programs – Every business spends a lot on advertising to get customers in the door, and once they are there customer retention and loyalty is key. Giving a gift after a number of purchases encourages more frequent visits and customer loyalty. Increase your business and frequency of visits by offering a freebie or gift after a pre-designated number of purchases.
Stock Liquidation – If you have a product on the shelves with a warehouse full of more units and they aren’t selling a stock liquidation promotion will help. Instead of offering a gift with purchase you can offer a drastically reduced price on these products after the purchase of a mainline product. This helps you move them and recover some or all of the investment you paid to get the slow seller.
PromoGroup Gift With Purchase Promotions
Designing, sourcing, logistics, implimentation, and evaluation of a gift with purchase promotion is the job of a marketing agency. PromoGroup has been working with the largest names in business for decades to create compelling and successful gift with purchase programs, sweepstakes, and gift coupon programs to achieve a variety of goals. From increasing sales to improving productivity from employees PromoGroup has the solutions you need to increase your sales, brand awareness, and help grow your business!
Contact or call PromoGroup today for more information
about starting a Gift With Purchase promotion