Imagine a shopper browsing your store. They spot a product they love, and suddenly they see an offer: “Get a free gift with your purchase today!” Instantly, the product feels more valuable, and the decision to buy becomes easier. This is the power of gift with purchase (GWP) marketing, a strategy used by some of the world’s most successful brands to increase sales, average order value, and customer loyalty.

Small and medium businesses can leverage this tactic to compete with larger brands and create memorable shopping experiences.

What is Gift With Purchase Marketing?

Gift with purchase marketing is a promotional strategy where businesses offer a free product, sample, or bonus item when a customer makes a purchase. Unlike discounts, GWP adds perceived value without reducing your product’s price, making it a win-win for both the brand and the customer.

Benefits include:

• Increased conversions: The bonus creates urgency and encourages immediate purchase.
• Higher average order value: Shoppers often buy more to qualify for the gift.
• Customer loyalty and brand affinity: Free gifts enhance the shopping experience and encourage repeat purchases.

Why Gift With Purchase Marketing Works

The psychology behind GWP is straightforward: humans love getting something for free. It creates a sense of reciprocity, making customers feel compelled to reciprocate by completing a purchase. It also improves:

• Perceived value: Even a small gift can make a product feel significantly more valuable.
• Urgency and exclusivity: Limited-time or exclusive gifts increase FOMO (fear of missing out).
• Brand discovery: If the gift is a sample, customers are introduced to other products, potentially expanding future purchases.

Types of Gift With Purchase Strategies

Here are effective ways small and medium e-commerce businesses can implement GWP marketing:

1. Free Sample With Every Purchase

Samples allow shoppers to try new products without commitment. Implement this by offering a small product or sample alongside any purchase. This can introduce customers to other items in your line and often leads to repeat sales.

Example: Cosmetic brands like Clarins offer free samples with every online purchase, allowing customers to handpick skincare or makeup minis at checkout, leading to repeat purchases and stronger brand loyalty. 

2. Threshold-Based Gifts

This encourages higher spending by tying gifts to minimum purchase amounts. Do this by setting a spending threshold to get the gift, e.g., “Spend $50 and get a free tote bag.” Shoppers often add more items to reach the qualifying amount, boosting your average order value.

Example: Clinique rewards shoppers with free deluxe gift sets when they hit a spending threshold, turning every purchase into a mini beauty discovery.

3. Exclusive or Limited-Edition Gifts

Limited-time items create urgency and exclusivity. Try this by offering products that are only available as gifts. This drives immediate action and positions your brand as exciting and exclusive.

Example: High-end perfume brands offer miniature versions of their signature scent as GWP during launches, increasing immediate sales and brand visibility.

4. Bonus Product for Repeat Customers

This rewards loyalty to encourage long-term engagement. You can do this by offering a free product for customers who make multiple purchases, e.g., “Buy 3 skincare products, get a facial mask free.” This fosters loyalty and repeat visits.

Example: Beauty and skincare subscription boxes frequently use this method to retain subscribers.

Measuring the Success of Your GWP Campaigns

Track these key metrics to ensure your campaign is effective:

• Conversion rate: How many visitors completed a purchase due to the GWP offer?
• Average order value (AOV): Are customers spending more to qualify for gifts?
• Repeat purchase rate: Do gifts encourage loyalty and return visits?

Studies show that brands using GWP marketing can increase average order value by up to 30%.

Gift with purchase marketing is a powerful, cost-effective strategy that drives sales, boosts average order value, and builds customer loyalty. By offering value beyond the product itself, brands create a memorable shopping experience that keeps customers coming back. Revvy can help automate your GWP campaigns and track results in real-time, making every promotion more profitable.