Can a Gift with Purchase Boost Your Sales?

Gift with purchase program

When sales and marketing leaders are looking to boost sales, discounts and buy-one-get-one-free (BOGO) offers often come to mind. While these may be effective some of the time, they are expensive and cut into profit margins. A gift-with-purchase program is affordable and can boost your sales.

Offering a gift with purchase is a proven way to increase sales. Most people believe that they make buying decisions based on a rational comparison of product features and benefits. In fact, most buying decisions are based on emotion. When a consumer has positive feelings toward a supplier or a product, they are more likely to choose that supplier or brand. Creating a reward system or offering a gift triggers an emotional response in the buyer.

Gift-with-purchase programs were pioneered in the cosmetics industry in the 1950’s by Estee’ Lauder. This revolutionary marketing strategy was quickly adopted by others and remains a staple in the cosmetics industry. The gift-with-purchase strategy continues to be effective across many industries today.

Gift cards are popular in some gift-with-purchase offers however merchandise gifts often provide a higher-perceived value to the recipient and a lower cost to the sponsoring company. For example, a $25 gift card often costs $25 and may require additional fees. A customized bag with perceived value of $25 to the consumer may cost the company only $10-12 total.  

Benefits of Using a Merchandise Gift-with-Purchase Strategy:

  • Differentiates your product and your company from your competition
  • Easy to advertise and promote – creates excitement
  • Encourages immediate purchases (“while supplies last”)
  • A tangible gift with logo will mean additional advertising for your brand
  • Creates customer loyalty
  • Increases sales!

Gift-with-purchase campaigns can also help to increase the average order size. When the purchase amount is set just slightly higher than the average product price, consumers will purchase more to receive the gift with purchase.

Selecting your Gift with Purchase

The gift that you select for your promotion should be carefully selected so that you receive additional value beyond the sales during the promotional period:

  • Choose a gift that is a good brand match. If you are selling a luxury item, make sure the gift is of the highest quality and value.
  • The gift may also support your marketing messages. If you are offering a “full coverage” solution, an umbrella may reinforce that message.
  • Imprint, engrave, emboss or otherwise identify the gift with your company logo or brand. Every time that consumer uses the product, you’re receiving residual advertising.
  • Choose something simple and useful. Apparel or other items that are sized will be difficult to manage. Choose an item that will be universally popular and useful to your audience.
  • Make it attractive. Choosing a current design or merchandise gift that is trending will be irresistible to your customer audience.

Partnering with an experienced professional to help you design an effective gift-with-purchase program will ensure that you get the maximum value from your campaign. Contact us today to get started!

In economic terms, the multiplier effect refers to the proportional increase or decrease in final income that results from an injection or withdrawal of capital. In terms of Safety Reward Programs, the multiplier effect might refer to the ROI² (Return on Incentive Investment). A properly structured program significantly impacts overall employee engagement and safety culture, where employees are attuned to safety-related issues, inspired to display “Above & Beyond” safe behaviors, willing to be safety ambassadors, and encouraged to promote learning and support continuous improvement. Such best-in-class programs are designed to promote group objectives and reward individual behavior, engaging, motivating, and rewarding the people behind your success.

Fortunately, there are thousands of companies in high-risk industries that have excellent safety programming, training, and coaching in place. Many include safety in their list of core values and have invested heavily in EHS (Environment, Health, and Safety) technology, training, telematics, and personnel. However, too many miss the opportunity to incentivize and recognize individual safety contributions, behaviors, and performance.

Programs featuring tangible and experiential awards as the reward currency can have a multiplying effect that pays dividends. Benefits include a more highly engaged workforce, fewer accidents and incidents, reduced claims and losses, lower turnover and absenteeism, better communication, increased productivity, visibility to leading and lagging indicators, incremental coaching and training opportunities, and improved profitability.

So, what’s the rub? Are engagement programs focused on employee safety, health, and wellness expensive to implement? Do they only make sense for companies with thousands of safety-sensitive workers? The answer to both questions is no. Properly structured programs can be cost-effective and right-sized for companies with as few as 100 safety-sensitive workers up to those with 10,000 or more. The ROI² of these programs can be expressed as a ratio (in this case, 4:1), with quantitative results showing a savings of $4.00 for every $1.00 invested and qualitative results revealing higher employee morale, which serves as a catalyst for productivity. Safety Reward Programs help to mitigate risk, elevate employee engagement, and improve overall safety culture. They also present an excellent opportunity for companies to simply say thank you to their employees for being safe, committed, and engaged.

People have an inherent need to know that their efforts do not go unnoticed. Safety Reward Programs provide the stimulus and energy that encourage employees to perform at their best and achieve new heights.



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