Gift with Purchase promotions: a strategy for boosting sales

Turn every transaction into added value for both your customer and your brand

Since the retail market is crowded, shoppers are always comparing options and trying to get the best value for their money. And if they can get more than they paid for, even better.

That’s exactly the role gift with purchase promotions play. These aren’t just clever giveaways, but a proven sales strategy that taps into buyer emotions and encourages them to make bigger purchases. It ticks several marketing boxes, from promoting new products to clearing dead stock.

But what exactly is involved, and how can you use it to boost your sales? That’s what we’ll look at today.

What Is a Gift with Purchase promotion?

A gift with purchase (GWP) promotion is a sales and marketing strategy in which customers receive a complimentary item when they make a qualifying purchase or meet a specified spending threshold. It’s often used to attract attention to a specific product, increase conversion rates, or simply reward customer loyalty. It’s especially common in highly competitive industries like beauty, fashion, tech, and general household goods.

The concept is simple: buy something, get something extra. This makes it quite attractive to retailers as they see that they are getting more value for their money.

However, behind it is a powerful sales tool. Even if it’s small, a well-chosen gift can encourage shoppers to choose your product, spend more, or try something new. This makes it a powerful customer incentive.

An example is a skincare brand offering a free mini serum for any moisturizer purchase. The serum won’t just be a gift but a nudge, a motivator, and sometimes, the only reason to choose a specific product.

Why Gift with Purchase works so well

While it’s a simple sales strategy, a GWP promotion is a powerful psychological trigger.

It taps into buyer psychology

As humans, we like reciprocity, so it’s in our nature to return a favor. When customers receive a free gift, even without asking for it, they immediately feel more positively about a brand. This is an emotional response, and it’s quite effective in lowering resistance to purchase and encouraging customers to complete an order or choose a specific brand.

It enhances perceived value

Customers are always weighing price against value. A GWP promotion instantly gives you the upper hand without slashing your prices, like you would in a discount. This is especially useful in premium products where discounting can hurt your brand’s perception. You’ll maintain your prestige, but customers will choose your product as the free gift increases their perceived value.

It encourages loyalty and repeat purchases

When a customer receives something extra, useful or unexpected, they are more likely to remember the experience. They’ll associate your brand with positivity, so they are likely to buy your product again. If they hadn’t tried it, they got a chance to.

Smart ways to use Gift with Purchase as a sales strategy

A gift with purchase is more than just a sales strategy, as the customer incentive improves the brand perception and customer retention. However, it needs to be intentional. Here are a few ways you can use it in an impactful way.

Use spending thresholds to boost cart value

Besides attaching a gift to a product, you can use it to increase your higher order values by using a threshold. For example, you can have the customer incentive as “Spend $100 and receive a branded tote bag.” This will encourage shoppers to add more items to their carts, increasing your average transaction size.

Bundle gifts with key products or categories

When drafting the gift with purchase promotion, you need to choose the products strategically. Some good ideas are new releases, high-margin items, and slow movers. The added gift will make these products more appealing.

Create urgency with limited-time offers

When you add a time limit, you create urgency that makes customers act quickly. For example, you can use gift with purchase promotions for seasonal offers or product launches. You can also create one with a “free [gift] for every order above $70 – this weekend only.” This will generate immediate sales and also create excitement and engagement around your brand.

Make the gift exclusive and desirable

While all gifts will increase perceived value, it’s easy to overlook generic ones. But when the gift feels special, it becomes a more powerful customer incentive. It can be a limited edition, a small size of a premium product, or branded merchandise. This will tell your customer that they are getting something others aren’t, improving the success of your campaign.

Looking to create a campaign to boosts your sales?

Promosfera can help craft a tailored promotion that increases immediate and long-term sales, deepens engagement, and strengthens your brand in the process. Reach out and we’ll walk you through it all!