Gift with Purchase (GWP) Guide | Opia (2024)

Table of Contents:

• Key Takeaways
• Gift with Purchase (GWP) Meaning in Marketing
• How Do Gift with Purchase Promotions Work?
• Benefits of Gift with Purchase Promotions
• Key Considerations for a Successful GWP Campaign
• Expert Tips for Successful GWP Promotions
• Examples of Successful GWP Promotions
• The Science of Sales Promotion
• How Opia Can Help Your Campaigns
• Get in Touch
• FAQs about Gift with Purchase Promotions

Key Takeaways

1. Drives Immediate Sales and Market Share: GWP promotions effectively boost sales and increase market share by offering digital or physical rewards that attract customers and encourage purchases.
2. Enhances Perceived Product Value: By offering an additional gift, brands can increase the perceived value of their products without reducing the price, maintaining their market position.
3. Fosters Customer Loyalty: These promotions not only attract new customers but also foster loyalty among existing ones by providing a valuable incentive that encourages repeat purchases.
4. Provides Valuable Customer Insights: The process of redeeming gifts allows brands to collect important data on customer behaviour and preferences, which can be used to inform future marketing strategies and tailor promotions more effectively.
5. Offers Strategic Flexibility: GWP promotions can be customised to fit various marketing goals, seasons, or events, providing brands with the flexibility to design campaigns that align with their specific objectives and market conditions.

Gift with Purchase (GWP) Meaning in Marketing

A Gift with Purchase (GWP) promotion is a marketing strategy where customers receive an additional product or service for free when they make a purchase. This strategy leverages the perceived value of the free gift to make the primary product more attractive, encouraging customers to choose it over competing options. GWP promotions can be particularly effective in both consumer and business markets, enhancing the overall value proposition without directly reducing the price of the main product.

How Do Gift with Purchase Promotions Work?

We recommend that Gift with Purchase (GWP) promotions operate through a straightforward claim and redemption process, ensuring the promotion, and claim process are easy to enter with a fast fulfilment process. All of Opia’s promotions are built on our White Label Sales Promotion platform, allowing promotions to be launched simply and easily.. Gift with purchase (GWP) promotions enhance the overall purchasing experience and motivate consumers to make purchases they might otherwise delay. Here’s how they typically work:

1. Offer

The business, brand, or retailer creates a promotion where an additional item is offered for free when customers purchase a qualifying product. This offer is communicated clearly through various marketing channels such as in-store displays, online banners, social media, and email newsletters.

2. Purchase

Customers buy a product that qualifies for the gift with a purchase offer. The qualifying criteria can be based on purchasing a specific product, reaching a certain spending threshold, or buying from a particular product category.

3. Redemption

We recommend running a Post-Purchase Fulfilment: This means that the customer completes a claim, on a redemption website we build, which we validate, and the reward is delivered to the customer shortly after the purchase through an efficient fulfilment process

4. Receive

Customers receive their free gift within a specified SLA period, which is detailed in the Promotion terms and conditions. Efficient delivery and clear communication about the gift status are crucial to ensuring a positive customer experience. Our claim tracker and regular communication ensures customers are informed of their claim status.

By emphasising the added value and enhancing the overall purchasing experience, GWP promotions motivate consumers to make purchases they might otherwise delay, driving immediate sales and increasing customer satisfaction.

Benefits of Gift with Purchase Promotions

1. Increased Sales and Customer Engagement

Gifts with purchase promotions are a powerful tool for driving sales and engaging customers. By offering a free product or service, these promotions make the primary product more attractive, leading to higher sales volumes. Customers are more likely to purchase a product if they receive an additional gift, enhancing the overall value of the deal.

2. Enhancing Perceived Value

GWP promotions increase the perceived value of the primary product without reducing its price. This strategy helps maintain the product’s price integrity and avoids price erosion. The additional gift makes the purchase more appealing and can eliminate price as a barrier in the buying decision process.

3. Fostering Brand Loyalty

GWP promotions significantly enhance brand reputation and customer loyalty. Customers appreciate the added value of a free gift, improving their overall perception of the brand. The process of receiving a gift creates a positive interaction with the brand, fostering loyalty and encouraging repeat purchases.

4. Building Valuable Customer Insights

GWP promotions offer a unique opportunity to gather valuable customer data. By requiring customers to register or provide details to receive their gift, brands can collect information about purchasing habits, preferences, and demographic details. These insights inform future marketing strategies and promotional campaigns.

5. Strategic Flexibility and Creativity

GWP promotions allow brands to design unique and creative campaigns tailored to their specific needs and target market. Whether it’s a seasonal promotion, a product launch, or a strategy to clear end-of-line stock, GWP offers can be customised to align with broader marketing objectives. Conducting market research on the target segments helps to ensure the right gift is selected at the right time, and optimising promotional performance.

6. Efficient Delivery and Customer Experience

In addition to selecting the perfect gift, the timing of its receipt is critical. Ensure that customers’ free gifts are delivered quickly and efficiently, using clear delivery notifications to keep them informed. This enhances the customer experience and increases the perceived value of the promotion.

Key Considerations for a Successful GWP Campaign

1. Set Clear Goals and KPIs

As with any sales and marketing activity, it is essential to establish clear goals and key performance indicators (KPIs) from the outset. These could include boosting sales on a specific product line, clearing end-of-line stock, attracting new customers, or increasing market share. Defining these objectives will help measure the campaign’s success and guide its implementation.

2. Plan Budgets and Manage Risks

Identifying the promotional cost can be challenging, as it depends on customer behaviour and redemption levels. To mitigate risk, consider working with providers who offer risk management solutions, such as fixed fees per unit sold, ensuring profitability regardless of redemption rates.

3. Align with Overall Marketing Strategy

When planning a GWP promotion, integrate it into your overall marketing strategy. Identify key periods where a GWP offer could drive sales, such as during holidays or specific events. Ensure that the promotion complements other marketing efforts and enhances the overall customer journey.

4. Use Creative Concepts and Appropriate Promotional Channels

For a GWP promotion to be successful, it needs to engage your audience with a compelling campaign. Get inventive with your marketing triggers and tie your promotion to relevant themes or events. Use appropriate channels to promote the campaign, including social media, email marketing, and in-store promotions, to maximise reach and impact.

5. Leverage Technology for Campaign Setup

Ensure a high-quality customer experience by using specialist software to manage campaign redemption activities, customer support, and reward fulfilment. A seamless digital process will enhance customer satisfaction and streamline the administrative aspects of the promotion.

Expert Tips for Successful GWP Promotions

Clear and Simple Redemption Process

Ensure the redemption process is straightforward for customers. Provide clear, step-by-step instructions and consider using visual aids like infographics or videos. A hassle-free process enhances customer satisfaction and encourages repeat purchases.

Importance of Tracking

Accurate tracking is essential. Use advanced technology to monitor gift redemptions and customer interactions in real time. This ensures efficient inventory management and distribution and provides valuable data on customer behaviour and redemption rates to inform future promotions.

Building Excitement and Engagement

Create excitement by actively engaging with customers through social media, email newsletters, and in-store displays. Highlight the value and exclusivity of the gift. Regular updates on gift availability and promotion status keep customers interested and engaged.

Select Relevant and Valuable Gifts

Choose gifts that are relevant to your target audience and complement your main product. Conduct market research to understand customer preferences and select gifts that align with their needs, increasing the perceived value of the promotion.

Create Limited-Time Offers

Create a sense of urgency by making your GWP promotion a limited-time offer. Limited availability encourages customers to act quickly, boosting sales and engagement. Highlight the scarcity and exclusivity of the gift to drive immediate purchases and increase the effectiveness of the promotion.

Examples of Successful GWP Promotions

Here are some examples of how we have helped leading brands achieve their sales and marketing goals through expertly crafted GWP promotions.

Free Samsung Galaxy Watch Active with S Series Phones

In the United Kingdom, Samsung aimed to maintain its market presence and drive sales of its flagship S Series phones during the post-Christmas period by offering a free Galaxy Watch Active with each purchase. This approach not only increased sales but also showcased the benefits of the Samsung Watch Active and the Samsung Health app. By leveraging a ‘get active over winter’ message, Samsung avoided costly discounts and enhanced the perceived value of their smartphones.

Opia managed the entire promotion, from creating a market-disruptive concept to handling claim management and customer support. The campaign’s success exceeded expectations, driving high engagement and sales, and reinforcing the brand’s market position.

Read the full case study here.

$100 Streaming Service Credit with LG TV Purchases

In the USA, LG Electronics sought to replicate the success of their previous promotion, which included a Disney+ subscription as a gift with LG TV purchases. With Disney+ unavailable, LG needed an alternative that would deliver similar or better results and keep retailers motivated to promote their products.

Opia designed a new promotion offering a $100 credit towards streaming or gaming services with Prime Video, Hulu, Showtime, Sling, or Xbox for each LG TV purchase. This approach not only increased sales but also created a unique selling point for LG TVs in a competitive market. The promotion generated excitement among consumers and retailers, boosting foot traffic and sales performance.

Read the full case study here.

The Science of Sales Promotion

Promotions have evolved from being unpredictable ventures to scientifically driven strategies. Opia leverages years of data insights to advise you on the best promotional tactics based on your category and objectives. This scientific approach allows for predictable and confident planning of your product cycles, ensuring maximum ROI.

See our Science of Sales Promotion report here.

How Opia Can Help Your Campaigns

At Opia, we understand that every brand has unique commercial goals. Our bespoke approach ensures that each promotional idea is tailored to your specific needs, driving action from your target market. By working closely with our clients, we design innovative promotional solutions that offer the best value for you and your customers.

Discover more about how we can increase your sales revenue with our different types of disruptive promotion campaigns. Visit our gift with purchase page for more information.

Get in Touch

Ready to delight your customers and reduce your promotional costs? Get in touch today to discuss how we can start building your customised campaign. At Opia, we take pride in offering end-to-end sales promotion solutions, ensuring a seamless and hassle-free experience for our clients.

Contact us to find out how we can help you achieve your commercial objectives and drive long-term success for your brand.

FAQs about Gift with Purchase Promotions

Q: What does gift with purchase mean?
A: A gift with purchase is a sales promotion strategy where customers receive an additional product or service for free when they make a purchase.

Q: What does GWP stand for in marketing?
A: GWP stands for “Gift with Purchase” in marketing.

Q: What is the gift with purchase trend?
A: The gift with purchase trend involves offering free products or services with a purchase to increase the perceived value and attractiveness of the primary product.

Q: How can gift with purchase promotions benefit brands?
A: GWP promotions drive sales, enhance perceived product value, foster customer loyalty, provide valuable customer insights, and offer strategic flexibility.

Q: How can brands ensure a successful gift with purchase campaign?
A: Brands should set clear goals, plan budgets, align the promotion with their marketing strategy, use creative concepts, and leverage technology for management.

Q: Are gift with purchase promotions better than traditional discounts?
A: GWP promotions increase the perceived value of the primary product without reducing its price, maintaining price integrity and avoiding price erosion.

Q: What are some common pitfalls to avoid in gift with purchase promotions?
A: Common pitfalls include unclear redemption processes, insufficient promotion, and not aligning the promotion with overall marketing strategies. Ensuring clarity, simplicity, and strategic alignment are key to avoiding these issues.