Your Guide for Free-Gifts to Increase Your Sales
When you were a youngster, how happy were you to find a reward in your cereal box?
You could have even picked your cereal based on the reward that was advertised on the outside of the box. For years, businesses have been giving away items in exchange for a transaction. Some presents were useful, such as ashtrays from Marlboro, while others looked less so, such as toasters from banks for opening a checking account. Gifts-with-purchases is still popular today as a way for businesses to provide value and increase their competitive edge.
What is a free gift with purchase?
A free gift with purchase is a sales strategy that entices and converts customers. Other promotions, such as offering a discount or providing free delivery, usually detract from the product's worth. However, the gift-with-purchase is utilized to increase the value of the receipt.
Customers are enticed to buy since they can get more for the same price. Gifts are often special and restricted. They are available as a promotion, which means that the gift is only available for a limited time or "while supplies last." This is done to emphasize the promotion's exclusivity and urgency, which other discounts may not be able to do.
How beneficial it is
Here are some benefits of offering free gifts with purchase:
1. Upsell
In most situations, a gift-with-purchase is only available if the client purchases a certain amount of products or money. “With a $50 purchase, you will receive a free surprise gift,” for example. "When you purchase a foundation palette, you'll receive a complimentary mascara," for example.
To obtain the reward, the consumer must achieve a particular amount. If a client wants the gift with purchase, they must spend a certain amount to reach that level. This causes them to purchase more units on their receipt in order to meet the gift-with-purchase requirement.
For instance, let's say you're giving a gift with a $50 transaction. If a customer spends $40 on items, they may decide to buy another item for $10 in order to obtain the free gift. This is a simple technique to increase the number of units on a receipt, especially for low-ticket or slow-moving products.
You can know more about how to boost your eCommerce sales by reading this detailed article and how to upsell/cross-sell by checking this one.
2. Brand value
The goal of a gift-with-purchase is to provide your consumer extra value. Other promotions, such as discounts (you can read more about discounts strategies and our tool for stack discounts on our blog), reduce the perceived value of your brand, whereas a gift increases it. You're not losing a lot money on your profit margins as you could with a huge discount or free shipping. By including a gift, you're not lowering the value of your brand. This is especially true if you have a high-end brand, such as most cosmetic firms.
3. Repurchases
The majority of gift-with-purchases are scaled-down or customized replica of another item. They're either samples or add-on items. For example, a cosmetic firm may give a travel-sized bottle of face cleanser as a gift. A free pair of socks with a pair of shoes is another example. This encourages your customers to try — and adore — a different one of your items. After trying out the present, they're more likely to return to buy full-size or extra goods from you. This stimulates recurrent purchases and, as a result, increases customer loyalty.
4. Customer retention
Customers enjoy receiving free goods in addition to making recurring purchases. A useful gift-with-purchase demonstrates that you value their company. Because you want people to have the finest possible experience with your goods, you give them the gift.
You can read more about customer retention and how to build a strong customer retention strategy in this article.
5. Increase your conversions
Customers believe the purchase has greater value, therefore they are more likely to convert. They feel like they're getting more "bang for their buck" when they know they'll get an extra item for the same price. This can provide significant purchasing power in a time when we're all striving to make smart economic judgments.
This added value might sometimes lead to a snap decision in the heat of the moment. Gifts-with-buy is usually special and limited, making the transaction more urgent.
So, how to offer free gifts?
1. Utility
In some manner, the gift should match the acquired item. With the purchase of a leash, you might, for example, include a little dog toy. You may also offer them a travel case if they purchase a pair of high-end sunglasses. This adds additional, meaningful value to the purchase, allowing you to construct a lifestyle around it.
What kind of purchase offer will truly entice your target market? The objective isn't only to hand out free stuff. As a marketing and conversion strategy, you should employ the gift-with-purchase. This implies that you should consider the types of supplementary goods that your target market will really want and utilize.
2. Don't give anything away
There is a distinction to be made between a giveaway and a gift-with-purchase offer. The objective is to add value to the client rather than simply provide them with more units. When you give a "gift" as a promotion without providing any actual value to the transaction, consumers can tell. You, for example, offer high-end eyewear. This would be a “giveaway” because a cleaning cloth costs cents. This does not excite the customer or offer significant value to the product. In reality, it may detract from the product's true worth.
A robust travel case, on the other hand, maybe a gift-with-purchase. This offers genuine value, increasing the likelihood of a purchase. Consider the order total. The quality of the gift-with-purchase should be comparable to what the customer "deserves" for spending that much money.
3. Clear, simple steps
Make sure the promotion information is clear when promoting the gift. You want your consumer to know exactly how much they need to spend or what they need to buy to be eligible for the reward.
Make a thorough note of all exceptions or exclusions. You should also indicate the manner through which the gift will be delivered. Is it going to be handed to them at the cash register? Is it going to be shipped separately?
4. Know your stock inventory
Make sure you have enough inventory of the gift-with-purchase. You don't want to run out of the freebie too soon, or your consumers will get dissatisfied with the offer. If you're offering a gift-with-purchase with a certain product, make sure you have plenty of the primary item on hand as well.
You don't require a lot of stock. It's fine to go. The fact that there is a limited supply helps to create a sense of urgency. Customers who were looking forward to the offer but didn't receive a gift-with-purchase when they paid an hour after the sale began may be disappointed.
5. Social media
Free gifts are almost as popular as social media among today's consumers. Take advantage of this! Use social media to promote your gift-with-purchase offer, or consider hosting a similar giveaway on your social media accounts.
We also suggest including a social component. Give the buyer your social media handles when you give them the gift. Make a call to action that will help you show off this visitor. You might ask them to take a photo and use your brand's hashtag on social media. This will demonstrate to their peers and social networks that your brand is enjoyable and beneficial. You may even give them a bonus or a present if they share their freebie and make a purchase on social media.