Stimulate sales with a "Gift with Purchase" PromotionIn the ultra-competitive environment that companies find themselves in today, how can they stay ahead of the competition? With price and service wars heating up, that mission may seem impossible. Companies can only slash their prices so much, without significantly affecting their bottom line. And while providing superior customer service in a highly competitive market can also seem hard as nails.
So what is a company to do? One of the most practical options is to offer a free gift for certain purchases. At first this may seem like a completely illogical action. After all, won't giving away free gifts cut into the profit margin from the sale? From a strictly fiscal viewpoint, handing out freebies might seem like an odd way for a company to boost its profits. But after taking a closer look, you might be surprised at how many benefits corporate gifts can provide. Here are some of the biggest ones:
1. Marketing of a new product.
You probably want the public at large to learn about a new product that your company has launched. There is a cornucopia of ways to advertise the product to the general public, such as through the Internet, TV, radio, magazines, newspapers, and so on. The only problem is that this is basically a hit-or-miss method. Even if a potential customer sees or reads about the new product, there's no guarantee that he or she will purchase it.
On the other hand, giving away a new product as a gift will grab the attention of the gift's receiver. Sure, you could include some literature to accompany the free gift. And there's a good chance that the customer will read it. But to receive a free sample of a new product is even better. It makes the new product seem more concrete. And since it's gratis, that will add additional value to it.
2. Brand awareness.
Your customers may simply be unaware of the different brands that your company sells. Providing a gift with purchases has the ability to change that situation. The gift likely contains the name of a brand or your company, and perhaps a logo. This is a fantastic method for introducing a particular brand to the customer, since he or she will likely take notice of the corporate gift. While the customer may have missed the product while sifting through products online or offline, it's difficult to miss a product's brand after being given the product gratis!
3. Shows customer appreciation.
The bottom line is that companies are built on customers. OK, that's a case of stating the obvious. But too often companies take their customers for granted, and then wonder why they don't return. One way to thank your customers is by providing them with a free gift after making a purchase of a minimum amount. While this isn't the only way for a company to show gratitude to its customers, it's definitely one of the most effective ways.
4. Establish brand loyalty.
One of the most effective ways to do that is by providing customers with a gift at purchase. OK, that's not to say that customers will automatically engage in brand loyalty, simply because they received a free gift. Sure, there's a chance that they didn't like the brand before their received the gift, and they didn't like the brand after receiving the gift. But they might like it!
Remember that business is a numbers game. It's possible that customers weren't aware of a certain brand before they received a gift representing that brand. Receiving the gift could make them interested in the brand, and could serve as the roots for future brand loyalty. While a customer likely won't be loyal to a brand simply because they received a free gift, the product itself could serve as a catalyst for long-term loyalty to a particular brand.
5. Makes an investment that pays for itself.
When doing the number crunching, you might first determine that giving away gifts with purchases isn't cost-effective. But the mere cost of the gifts isn't the only factor that you should consider. Sure, there are some customers who will appreciate the gift but won't become repeat customers. But it's highly likely that the corporate gifts will translate into increased revenue. So the initial cost of the gifts could blossom into revenue that's worth several times that amount!
6. Attracts new customers.
While companies strive to have repeat customers, the key is to make them customers first! One of the most effective ways to do that is through gifts with purchase. Who doesn't like to get something free, right? Such gifts are particularly effective during the holiday season, when everyone's already in a festive mood. But even if a holiday isn't near, the concept of getting something free will attract new customers to your business. And new customers can later become repeat customers, which is a good thing!
7. Maintains the brand image.
A gift with purchase will likely contain the name of your company, and perhaps a logo. That's not particularly impressive in and of itself, since most of your products likely have one or both of those components. But each time your customer uses the product, he or she will remember the gift, the brand, and your company. And in turn, the power of suggestion becomes a factor.
8. Use cooperative promotions.
One effective method when creating a gift with purchase is to launch a cooperative promotion that includes your company and another company or brand. This method provides several benefits, such as a reduction in expenses, doubling the sales potential, and so on. As a word of caution, provide enough lead time, as jointly creating and implementing the premiere promotion will require more time and effort than those involving a single company or brand.
9. Examples of gift with purchase programs
A free cosmetic bag is given when a customer purchases so many products of make-up. A beach bag is given with every purchase of sunscreen. A chamois is given with a selection of car care products. A free paint roller brush and pan are given with the purchase of paint. More times than not to make the promotion easy at the retail level, the gift is packaged with the product and the Free Gift is advertised on the package.
If you want to stimulate your sales then try a “gift with purchase” promotion!