Is gift-with-purchase underused?
Through a special arrangement, presented here for discussion is a summary of a current article from Retail Contrarian, the blog of the Dynamic Experiences Group.
A gift with purchase (GWP) is a great tool for driving customers back into a store, engaging those customers, and building higher sales. They’re also great for the customer because she gets more wonderful products for her money.
Here are some tips on how to better leverage a GWP to create more sales:
1. Always physically show the product you’re talking about. This immediately creates higher value in the gift item. Think of it this way: How often do you order dessert when your waitperson asks you if you’d like dessert? I rarely do. What if the person describes the different desserts for you? Tempting, right?
But what happens when the waitperson brings over the dessert tray and you get a look at each and every one of the delicious choices? The likelihood that you’ll order something skyrockets. (And I, for one, very much appreciate that few restaurants do that.) You’ll make more sales that include a GWP if you show the gift like it’s a tasty dessert.
2. Treat the product as the special gift it is. We all love to receive gifts, and part of that experience is in the way the gift is presented. Do you want a gift given to you with, "Oh yeah, here’s something" or "Here’s something special to show my appreciation"? It’s the same item, but the second presentation makes the gift special. And don’t call it a GWP. Use the product name.
3. Assume the customer wants to qualify for the GWP. I once had a store reporting to me that went through three times more GWP products than other stores their size. I didn’t know why until I visited. I discovered that the staff always assumed the customer wanted the GWP.
They did three things with every customer:
- They told the customer they would receive the GWP when spending a certain amount. Most stores say "if." It’s a subtle but powerful difference.
- As noted above, they always physically showed the product to each customer.
- They never asked to show another product to get the customer to the qualifying amount. They never said, "If you want…" They just automatically kept showing items to ensure their customer would receive the gift with purchase.
What tips do you have around maximizing GWP (gift with purchase) for stores? When do GWPs act more like purchase and experience enhancers and when are they just margin killers?