GWP marketing is an acronym for Gift With Purchase Marketing. It is a marketing strategy where businesses offer a free gift to customers who purchase a specific product or spend a certain amount of money.
This technique is not new; however, its effectiveness in boosting sales and enhancing customer loyalty has made it a popular choice among businesses of all sizes.
Why is GWP marketing important?
It’s simple – people love freebies. Receiving a gift triggers positive emotions and creates a sense of reciprocity in the customer, making them more likely to purchase from your business again.
Moreover, it adds perceived value to the customer’s purchase, making them feel that they are getting more for their money.
GWP marketing vs. traditional marketing
Traditional marketing methods like advertising, direct mail, or online marketing are still effective, but they can be costly and may not yield immediate results. On the other hand, GWP marketing is relatively cost-effective and can generate quick results.
Benefits of GWP marketing
Cost-effective: It is generally more cost-effective than other marketing methods as the cost of the gift can often be offset by the increased sales it generates.
Immediate impact: Offering a free gift can immediately attract attention and encourage customers to make a purchase.
Enhances brand image: A well-thought-out and useful gift can enhance your brand image and create a positive impression in the minds of your customers.
The mechanics of GWP marketing
How GWP marketing works
Select a gift: Choose a gift that is relevant to your target audience and complements the products or services you offer.
Set the criteria: Define the criteria for receiving the gift. It could be based on the purchase of a specific product, spending a certain amount of money, or buying a certain quantity of products.
Promote the offer: Make your customers aware of the offer through various marketing channels such as your website, social media, email marketing, or in-store promotions.
How GWP marketing boosts sales
1. Creating a sense of urgency
By offering a free gift for a limited time or while supplies last, it creates a sense of urgency among customers to make a purchase. This can lead to increased sales as customers are motivated to act quickly to take advantage of the offer.
2. Encouraging larger purchases
By setting the criteria for receiving the gift as spending a certain amount of money, it encourages customers to purchase more to qualify for the gift. This can lead to an increase in the average order value.
How GWP marketing enhances customer loyalty
1. Rewarding customer loyalty
Offering a free gift as a reward for loyalty, such as on a customer’s birthday or after a certain number of purchases, can make the customer feel valued and appreciated. This can lead to increased loyalty and repeat purchases.
2. Generating positive word of mouth
When customers receive a free gift, they are likely to share their positive experience with friends and family, either in person or on social media. This can generate positive word of mouth and attract new customers to your business.
Implementing GWP marketing in your business
1. Setting objectives
Before implementing a GWP marketing campaign, it is essential to set clear objectives. What do you want to achieve? Is it to increase sales, enhance customer loyalty, or attract new customers?
2. Selecting the right gifts
The success of a GWP marketing campaign largely depends on the selection of the gift. It should be something that your target audience would find valuable and useful. Additionally, it should be relevant to your products or services and reflect your brand image.
3. Promoting your offer
Once you have selected the gift and set the criteria for receiving it, the next step is to promote the offer. Utilise various marketing channels to ensure that your target audience is aware of the offer and understands how to qualify for the gift.
Measuring the success of GWP marketing
1. Tracking metrics
It is essential to track the success of your GWP marketing campaign by monitoring key metrics such as the number of gifts distributed, the increase in sales, the average order value, and the number of new customers acquired.
2. Analysing results
After the campaign has ended, analyse the results to determine its success. Did you achieve your objectives? What worked well, and what could be improved for future campaigns?
GWP marketing is a powerful tool for boosting sales and enhancing customer loyalty.
By offering a free gift with purchase, it creates a sense of urgency, encourages larger purchases, rewards customer loyalty, and generates positive word of mouth.
However, it is crucial to select the right gift, promote the offer effectively, and measure the results to ensure the success of the campaign.