Learn Gift With Purchase in 10 Minutes: 8 Practical GWP Ideas

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Gift with purchase promotions, also known as GWP, have become a powerful marketing tool for businesses looking to boost sales and foster customer loyalty. By offering customers a complimentary item when they make a qualifying purchase, companies can create a more engaging and rewarding shopping experience. This article will delve into the concept of free gift with purchase, explore its significance in modern retail, and provide insights on how to effectively implement GWP strategies to drive business success.

1. Understanding Gift with Purchase (GWP) promotions

1.1 Definition of Gift with Purchase

Gift with Purchase, or GWP, is a promotional marketing strategy where customers receive a free gift when they make a purchase that meets certain criteria, such as a minimum spend amount or the purchase of specific products. The free gift is typically a sample, a full-sized product, or branded merchandise that complements the customer’s purchase.

For example, a cosmetics brand might offer a free makeup pouch with a minimum purchase of $50, or a tech company could provide a complimentary pair of earbuds with the purchase of a smartphone. The free gift adds perceived value to the customer’s shopping experience and can incentivize them to make a purchase or spend more than they initially intended.

1.2 Importance of GWP in Modern Retail 

In today’s competitive retail landscape, businesses are constantly seeking ways to differentiate themselves and attract customers. Gift with purchase promotions have proven to be an effective strategy for several reasons:

• Enhancing customer experience: Receiving a free gift can create a positive and memorable shopping experience for customers, making them feel valued and appreciated by the brand.
• Increasing sales: GWP promotions can encourage customers to spend more to qualify for the free gift. Industry reports suggest that Gift with purchase campaigns can lead to an average 15-20% increase in sales during the promotional period.
• Customer Retention: Offering free gifts can help build a positive relationship with customers, increasing the likelihood of repeat purchases. A recent survey found that 90% of customers who received a gift with their purchase were more likely to shop with the brand again.
• Competitive Differentiation: In crowded markets, unique and appealing GWP offers can help businesses stand out from their competitors. By providing a memorable and valuable free gift, companies can attract customers who may have otherwise chosen a different brand.

By leveraging the power of Gift with purchase promotions, businesses can create a win-win situation where customers feel rewarded, and the company benefits from increased sales and customer loyalty.

2. How Gift with purchase promotions work

Gift with purchase promotions can be structured in various ways to suit different business goals and target audiences. Some common mechanics include:

• Minimum purchase requirements: Customers must spend a certain amount to qualify for the free gift. For instance, “Spend $100 and receive a free tote bag.”
• Product-specific promotions: The free gift is tied to the purchase of a particular product or product line. An example would be, “Buy any skincare product and receive a free mini facial serum.”
• Time-limited offers: GWP promotions are often available for a limited time, creating a sense of urgency for customers to make a purchase. “Free gift with purchase, this weekend only!”

3. Creative Gift with Purchase Ideas and Successful Campaigns

3.1 Branded Merchandise

Branded merchandise refers to products that feature a company’s logo, slogan, or other branding elements. These items can range from practical everyday objects like t-shirts, mugs, and tote bags to more unique and memorable items like branded Bluetooth speakers or custom-designed accessories.

Branded merchandise works well for companies with strong brand recognition and loyal customer bases. By offering branded items as complimentary gifts, these companies can leverage their brand equity to create a stronger emotional connection with customers and increase brand visibility through the use of the gifted products.

Pros:

• Reinforces brand identity and increases brand exposure
• Creates a tangible, lasting reminder of the brand
• Can be cost-effective when produced in large quantities
• Appeals to customers who appreciate practical, functional gifts

Cons:

• May not be as exciting or unique as other gift options
• Requires a strong, established brand to be effective
• Can be seen as generic or impersonal if not well-designed or thoughtfully chosen

Case Study: Coca-Cola’s Share a Coke Campaign

Coca-Cola’s “Share a Coke” campaign is a prime example of successful branded merchandise. The company replaced its iconic logo on Coke bottles with popular names and phrases, encouraging customers to find and share bottles with names that held personal meaning.

3.2 Sample-Sized Products

Sample-sized products are miniature versions of a company’s full-sized offerings, designed to give customers a taste of the product without requiring a full purchase. These samples can be particularly effective for companies introducing new products or looking to encourage customers to try items they may not have considered before.

Sample-sized products work well for a wide range of industries, including beauty and skincare, food and beverage, and household goods. They are particularly useful for products that customers may be hesitant to commit to without trying first, such as new flavors, scents, or formulas.

Pros:

• Allows customers to try products with minimal risk or commitment
• Can encourage future full-size purchases if customers enjoy the sample
• Provides a tangible, memorable experience for customers
• Can be cost-effective, as sample sizes are less expensive to produce than full-size products

Cons:

• May not provide enough product for customers to fully experience its benefits
• Can be seen as less valuable or exciting than other gift options
• Requires careful logistical planning to ensure samples are fresh and properly packaged

Case Study: Sephora’s Beauty Insider Birthday Gift

Sephora, a leading beauty retailer, offers a complimentary birthday gift to its Beauty Insider loyalty program members. These gifts often include sample-sized products from popular brands, giving customers the opportunity to try new items they may not have purchased otherwise.

3.3 Gamification Elements 

Gamification involves incorporating game-like elements, such as puzzles, challenges, or rewards, into a GWP promotion. By adding an interactive, engaging element to the gifting process, companies can create a more memorable and enjoyable experience for customers.

Gamification works well for companies targeting younger, tech-savvy audiences who value interactive experiences. It can also be effective for brands looking to stand out in crowded markets or to create a stronger emotional connection with customers.

Pros:

• Creates a fun, engaging experience that stands out from traditional gift promotions
• Encourages customer interaction and participation
• Can generate social media buzz and word-of-mouth marketing
• Provides valuable customer data and insights through game interactions

Cons:

• Can be more complex and costly to implement than other gift options
• May not appeal to all customer demographics
• Requires careful planning to ensure the game elements are intuitive and enjoyable

Case Study: McDonald’s Monopoly Game

McDonald’s Monopoly is a classic example of a successful gamification-based GWP promotion. Customers collect game pieces with their purchases, which can be redeemed for prizes ranging from free menu items to luxury vacations and cash rewards.

3.4 Experiential Gifts

Experiential gifts focus on providing customers with a unique, memorable experience rather than a physical product. These gifts can include things like exclusive access to events, travel vouchers, or personalized services.

Experiential gifts work well for luxury brands or companies selling high-end products, as they align with the premium, aspirational nature of these offerings. They can also be effective for brands looking to differentiate themselves in markets saturated with physical gift options.

Pros:

• Creates a strong emotional connection and lasting memory for customers
• Aligns well with the growing trend of valuing experiences over material possessions
• Can generate social media buzz and word-of-mouth marketing
• Allows for personalization and customization to individual customer preferences

Cons:

• Can be more expensive and logistically challenging to implement than physical gift options
• May not have as broad an appeal as more practical, functional gifts
• Requires careful vetting and quality control to ensure experiences meet customer expectations

Case Study: Neiman Marcus’s Fantasy Gifts

Each year, luxury retailer Neiman Marcus offers a collection of “Fantasy Gifts” as part of its Christmas Book catalog. These gifts are ultra-exclusive, one-of-a-kind experiences that cater to the brand’s affluent clientele.

Past Fantasy Gifts have included things like a custom-designed Infiniti Q60 car, a walk-on role in a Broadway show, and a private quarterback camp with Joe Montana. While these extravagant gifts are out of reach for most customers, they generate significant buzz and reinforce Neiman Marcus’s image as a purveyor of luxury and exclusivity.

3.5 Complementary Accessories

Complementary accessories are items that supplement or enhance the use of a company’s primary product offerings. For example, a luggage company might offer a complimentary travel pillow or packing cubes when purchasing a suitcase.

This type of GWP works well for companies selling products that have natural companion items or accessories. By providing these complementary gifts, companies can enhance the perceived value of their primary offerings and encourage customers to use their products more frequently or effectively.

Pros:

• Enhances the usability and value of the primary product
• Encourages customers to engage more deeply with the brand and its offerings
• Can drive sales of the complementary items if customers enjoy the gifted versions
• Provides a practical, functional benefit that customers will appreciate

Cons:

• May be less exciting or attention-grabbing than more unique or experiential gift options
• Requires careful selection to ensure the accessories are genuinely useful and relevant to customers
• Can be costly if the companion items are high-value or if the promotion generates a large volume of qualifying purchases

Case Study: Apple’s Complimentary AirPods Promotion

In a recent promotion, Apple offered a complimentary set of AirPods wireless earbuds with the purchase of select iPhone and iPad models for college students. This GWP not only provided a strong incentive for students to choose Apple products over competitors but also encouraged deeper engagement with the Apple ecosystem.

3.6 Partnered Products 

Partnered products involve collaborating with another brand to create a unique, co-branded gift item. These partnerships can take many forms, such as a beauty brand partnering with a fashion designer to create a limited-edition makeup bag or a food company collaborating with a celebrity chef on a custom recipe book.

Partnered products work well for brands looking to tap into new customer segments or to create a more premium, exclusive perception of their offerings. By aligning with a respected partner brand, companies can benefit from the partner’s brand equity and reach while also providing customers with a unique, highly desirable gift item.

Pros:

• Allows brands to tap into new customer segments and benefit from partner brand equity
• Creates a sense of exclusivity and scarcity that can drive demand and buzz
• Provides an opportunity for creative, outside-the-box gift ideas
• Can generate media attention and social media buzz through the unique partnership

Cons:

• Requires significant coordination and alignment between partner brands
• Can be more expensive and logistically challenging than solo-branded gift options
• Risks diluting or confusing brand messaging if the partnership is not well-aligned
• May have limited appeal if customers are unfamiliar with or do not value the partner brand

Case Study: Wild and SimplyCook Collaboration

Wild, a sustainable deodorant brand, partnered with SimplyCook, a recipe box company, to implement a creative GWP strategy. Customers who purchased Wild deodorant products received a complimentary gift from SimplyCook, enhancing the perceived value of their purchase.

3.7 Digital Products 

In today’s increasingly digital world, companies can also offer complimentary gifts in the form of digital products or services. These can include things like e-books, online courses, software trials, or subscription services.

Digital products work well for companies with a strong online presence or whose primary offerings are digital in nature. They can also be effective for brands looking to provide a high-value gift at a lower cost, as digital products typically have lower production and distribution costs than physical items.

Pros:

• Can be delivered instantly and without shipping costs
• Allows for easy customization and personalization based on customer preferences
• Provides a high perceived value at a potentially lower cost than physical gifts
• Can encourage customers to engage more deeply with the brand’s digital ecosystem

Cons:

• May be less tangible and memorable than physical gift items
• Requires customers to have compatible devices or software to access and use the gift
• Can be easily overlooked or forgotten if not prominently featured or delivered
• May have limited appeal for customers who prefer physical items or have digital fatigue

Case Study: Mattel’s WWE 2K Digital Content GWP

Mattel, the multinational toy manufacturing company, partnered with Snipp, a leading promotions management platform, to create an innovative GWP program for their WWE 2K video game franchise. The collaboration aimed to drive sales of John Cena toy products while enhancing engagement with the WWE 2K game.

Customers who purchased qualifying John Cena action figures or accessories at Walmart stores could upload their receipts to a dedicated microsite to receive exclusive in-game content for the WWE 2K game. This digital bonus content included special character skins, power-ups, and other game enhancements that added value to the physical toy purchase.

3.8 Personalized Gifts

Personalized gifts are items that are customized with the recipient’s name, initials, or other personal details. This can include things like monogrammed luggage tags, engraved jewelry, or customized product bundles based on the customer’s stated preferences.

Personalized gifts work well for companies looking to create a stronger emotional connection with their customers and to provide a highly memorable, one-of-a-kind gifting experience. They can also be effective for brands in industries where personal expression and individuality are highly valued, such as fashion, beauty, and lifestyle products.

Pros:

• Creates a strong emotional connection and sense of uniqueness for the recipient
• Encourages customers to engage more deeply with the brand and to share their personalized items on social media
• Can drive future purchases of customizable products if customers enjoy the personalization options
• Allows brands to gather valuable data on customer preferences and behaviors

Cons:

• Requires more logistical coordination and potentially longer lead times to produce and deliver personalized items
• Can be more expensive than standardized gift options due to the customization process
• May not be feasible or desirable for customers who prefer to receive their gifts immediately or who value privacy
• Personalization options may be limited by the nature of the product or the customization process

Case Study: Coca-Cola’s “Share a Coke” Campaign

As mentioned in the Branded Merchandise section, Coca-Cola’s “Share a Coke” campaign is a highly successful example of personalization in action. By replacing its iconic logo with popular names and phrases, Coca-Cola created a highly personalized, engaging experience for customers.

The campaign not only encouraged customers to seek out bottles with their own names but also to purchase personalized bottles as gifts for others. This created a strong emotional connection between the brand and its customers, as the personalized bottles felt like a special, one-of-a-kind item created just for them.

4 How to create effective GWP Marketing Strategy and Best Practices

4.1 Setting Clear Objectives for GWP Campaigns 

When setting objectives for your GWP campaign, it’s essential to focus on criteria that align with your overall business goals and marketing strategy. The most common objectives include:

Increasing Sales Revenue and Average Order Value:

If your primary goal is to drive sales growth and encourage customers to spend more, set a minimum purchase threshold for qualifying for a gift that’s slightly higher than your typical average order value. This motivates customers to add extra items to their cart to reach the reward.

Acquiring New Customers:

To attract first-time buyers, consider slightly lowering your minimum purchase requirement for new customers to reduce barriers to entry. You could also offer a special “welcome” gift for first purchases to sweeten the deal and encourage trial.

Also, you will need to promote your GWP offer through channels that effectively reach new audiences, like social media ads, influencer partnerships, or paid search placements.

Improving Customer Retention and Loyalty:

Research from BIA – a company that specializes in providing data-centered analysis and consulting services – indicates that loyal customers spend 67% more than new customers.

If strengthening relationships with existing customers is your focus, tailor your GWP rewards to their demonstrated interests and preferences. Analyze past purchase data to identify popular product categories or specific items that loyal customers tend to buy repeatedly.

Promoting New Product Launches:

When introducing new items, your gift with purchase strategy can play a key role in generating trial and gauging customer reactions. To encourage people to take a chance on a new product, consider offering it as a free gift with the purchase of a relevant best-seller or product in the same category.

This allows customers to experience your new offering risk-free while still driving revenue from the associated purchase. Soliciting feedback on the gifted item via a post-purchase survey can provide invaluable insights to help refine your product development and marketing efforts.

Alternatively, you could offer a free gift or bonus reward to customers who purchase the new item at launch. This could be a complementary accessory, a discount on a future purchase, or even a special unboxing experience to create a memorable first interaction with your latest offering.

Remember, the key to a compelling GWP offer is a clear value exchange – the gift should feel genuinely desirable and worth the effort required to earn it. 

4.2 Determining Eligibility Criteria for Gifts 

To maximize participation without deterring potential customers, it’s essential to establish appropriate eligibility criteria for your gift with purchase. Two key factors to consider are minimum purchase thresholds and product-specific promotions.

Minimum Purchase Thresholds

Setting a minimum spending requirement for customers to qualify for the free gift is a common practice in gift with purchase promotions. The key is to find the sweet spot – high enough to encourage increased spending but not so high that it discourages participation.

Digital marketing expert Aaron Zakowski suggests setting your threshold at 30% higher than your average order value (AOV). For instance, if your AOV is $50, a $65 minimum purchase requirement can motivate customers to add more items to their cart to qualify for the gift. 

Product-Specific Promotions

Another effective approach is to tie the free gift to the purchase of specific products or categories. This strategy can help drive sales for targeted items, promote new launches, or move excess inventory. Here are a few tips for choosing products for your GWP campaign:

1. Align with campaign goals: Select products that support your primary objective, whether it’s clearing inventory, promoting new items, or boosting sales of high-margin products.
2. Consider product popularity: Choose products that have a wide appeal and are likely to attract a large number of customers to participate in the promotion.
3. Ensure gift relevance: The free gift should be relevant and complementary to the products tied to the promotion. For example, if you’re promoting a skincare line, a free makeup bag or travel-sized moisturizer could be a great fit.
4. Bundle complementary products: Consider creating product bundles that include the free gift and encourage customers to purchase multiple items to qualify for the offer.
5. Leverage data insights: Use customer purchase data and product performance metrics to identify products that are most likely to drive engagement and sales when paired with a GWP offer.

By carefully selecting the products eligible for your gift with purchase promotion and setting appropriate minimum purchase thresholds, you can create a targeted, effective campaign that drives your desired business outcomes.

4.3 Winning Marketing Strategies for Your Offer

To ensure your GWP campaign reaches the widest possible audience, promoting the offer through various channels is crucial. Let’s explore some effective marketing strategies and dive into the essential questions to ask when crafting your promotion campaigns.

Social Media Campaigns

Social media is a powerful tool for promoting your gift with purchase offers and engaging with your target audience. When building a social media campaign, consider the following questions:

Who is my target audience? Understanding your audience’s demographics, interests, and behaviors will help you tailor your content and choose the right platforms.
A recent study by Statista indicated that as of September 2023, 29 percent of Facebook users in the United States were aged 30 to 39 years, while a further 29 percent of users were aged 50 to 64 years, suggesting these age groups would be particularly receptive to products and services like financial planning tools, home improvement items, family-oriented entertainment subscriptions, health and wellness products, and professional development courses.
The image below showcases the full breakdown of age rank by Social Media:

What are my business goals? Align your social media objectives with your overall gift with purchase campaign goals, whether it’s driving sales, increasing brand awareness, or fostering customer loyalty.

What type of content can I create? When creating content for social media, consider the unique strengths of each platform. Instagram and Pinterest are ideal for eye-catching visuals like professional product photos or lifestyle shots featuring your GWP. Video-centric platforms like YouTube or TikTok are perfect for engaging clips such as unboxing videos, product demos, or short ads, but keep in mind that video production often requires more time and effort compared to static images.
A recent research from Sproutsocial with over 729,000 public social profiles participating indicated that Short-form Videos and Images are the most captivating type of social media content:

How competitive is my industry on these platforms? To gauge the competitiveness of your industry on a specific social media platform, start by searching for keywords related to your products or niche. Take note of how many competitors appear and analyze their content strategies, engagement levels, and follower counts. If you find a high volume of similar businesses actively promoting their offerings and interacting with a large audience, that’s a strong indication that the platform is quite competitive for your industry.

What is my budget for social media marketing? Determine how much you can allocate to social media advertising and content creation to maximize your campaign’s reach and impact.

How do I measure success on these platforms? Establish key performance indicators (KPIs) to track your campaign’s performance, such as engagement rates, click-through rates, or conversion rates.

Different social media platforms cater to varying business goals and audiences. For instance, Instagram and TikTok are great for visually showcasing products and building brand awareness, particularly among younger audiences. LinkedIn, on the other hand, is more suited for B2B marketing and professional networking.

Email Marketing

Email marketing is another crucial channel for promoting your GWP campaign and targeting your message to the right audience. As reported by The Radicati Group, the number of email users worldwide is expected to grow from approximately 4.5 billion in 2024 to over 4.8 billion by 2027, underlining the continued relevance and potential of email as a marketing channel for reaching a wide audience with your gift with purchase offer.

When developing your email marketing strategy, a recent report from Klaviyo showcases that automated flows, such as abandoned cart emails or post-purchase follow-ups, generate up to 30 times more revenue per recipient than generic email blasts, as they are highly targeted and timely. This highlights the importance of leveraging automation.

Basically, the red bars show average Revenue Per Recipent (RPR), and the purple bars show top 10% RPR for that flow. Essentially, it highlights how the best email senders (the top 10% performers) significantly out-earn the average sender for each flow type.

Influencer Partnerships

Partnering with influencers can help you reach new audiences, build trust, and drive engagement for your GWP campaign. A Pew Research Center survey found that 54% of 18-29-year-olds say influencers impact their purchasing decisions a lot or a little. This drops to 42% for users aged 30-49 and 29% for those 50 and older, indicating that influencer partnerships may be particularly effective for targeting younger demographics.

To effectively leverage influencer partnerships:

• Identify influencers whose content aligns with your brand values and target audience preferences.
• Collaborate with influencers to create authentic, engaging content that showcases your GWP offer and resonates with their followers.
• Set clear goals and KPIs for your influencer partnerships, such as reach, engagement, or conversions, to measure the success of your campaigns.
• Foster long-term relationships with influencers who generate strong results to build ongoing brand advocacy and drive sustained impact for your GWP promotions.

By strategically leveraging social media, email marketing, and influencer partnerships, you can maximize the visibility and impact of your GWP campaign, reaching your target audience with compelling content and driving meaningful business results. The key is understanding your audience, setting clear objectives, and choosing the channels that best align with your goals and resources. By staying data-driven and adaptive in your approach, you can continually refine your promotion strategies to achieve optimal outcomes for your GWP initiatives.

5. Common Pitfalls to Avoid in GWP Promotions

While gift with purchase promotions can be highly effective, there are several common mistakes businesses should watch out for. Let’s explore these pitfalls and how to avoid them to ensure your campaign’s success.

1. Low-Value or Irrelevant Gifts 

One major misstep is choosing gifts that customers perceive as cheap, low-quality, or unrelated to your brand. This can dampen interest in your promotion if people feel the gift isn’t worth the required purchase.

To avoid this, carefully select gifts that:

• Align with your brand values
• Resonate with your target audience
• Provide genuine value
• Match the effort needed to qualify

Thorough market research can help identify gifts your customers will appreciate. Make sure the gift’s value feels commensurate with the minimum purchase or other eligibility criteria.

2. Complicated Eligibility Criteria 

Another frequent mistake is setting overly complex or restrictive rules for qualifying. If it’s too confusing or the minimum purchase is too high, shoppers may not bother participating.

The solution? Keep it simple! Clearly state the requirements, like minimum purchase amounts, and prominently display this info across your marketing. If you offer tiered rewards or multiple gift options, consider using visuals like infographics to help customers quickly grasp the different thresholds and gifts. The goal is an intuitive, seamless process for earning the gift.

3. Ineffective Campaign Promotion 

Even an amazing gift with a purchase offer will underperform if it is not properly promoted. Skimping on a solid multi-channel marketing plan limits your reach and results in low participation.

To get your promotion in front of as many eyes as possible:

• Leverage multiple channels like social media, email, influencer partnerships, and your own website
• Tailor your messaging and visuals to each platform
• Allocate some budget to paid ads to expand your reach
• Regularly monitor and tweak campaigns based on performance data

4. Not Tracking Success Metrics or Gathering Feedback 

Failing to measure your promotion’s results is a missed opportunity to learn and improve for next time. Without knowing your key metrics and customer sentiment, you can’t intelligently refine your approach.

Overcome this by:

• Tracking participation rates, average order values, new customer acquisitions, and revenue generated to gauge overall success and spot areas to improve
• Actively collecting customer feedback via surveys, social listening, and other channels for insights on how your offer is being received and what people want for the future.

By proactively dodging these common pitfalls, you can set your GWP campaign up to delight customers and deliver the results you’re aiming for. Stay customer-focused, data-informed, and nimble, and you’ll be able to progressively optimize your GWP strategies for maximum impact.

6. FAQs and Questions to Consider

To deepen your understanding of GWP strategies and address common questions, let’s explore some helpful supplementary content.

7. Final Words

Gift with purchase promotions can be remarkably effective for driving sales, fostering loyalty, and attracting new customers when executed thoughtfully. The key is to select the right gifts, set clear eligibility criteria, and promote the offer through targeted, multi-channel campaigns.

However, it’s crucial to navigate potential pitfalls, such as choosing low-value gifts or failing to measure success. By proactively addressing these risks and continuously refining your approach based on data-driven insights, you can optimize your GWP efforts and achieve the desired outcomes.

To maximize GWP success, maintain a customer-centric focus, stay attuned to your audience’s preferences, and adapt as needed. Choose gifts that are relevant and aligned with your brand, set attainable eligibility criteria, develop comprehensive promotional strategies, monitor performance metrics, and seek customer feedback to refine your approach.