Gift With Purchase (GWP)
Gift with Purchase (GWP) is a promotional strategy where customers receive a free gift when they buy a specific product or spend a certain amount.
Definition and Purpose:
Gift with Purchase (GWP) is a marketing tactic used to incentivize customers to make a purchase by offering a free gift alongside a product. This strategy is often used to encourage higher spending, boost sales, and increase the perceived value of a purchase.
Common Use Cases:
GWPs are commonly used in the beauty, fashion, and luxury goods industries, where customers are enticed to buy more to receive a desirable item. They can also be effective during special promotions, holidays, or product launches to drive sales and increase brand loyalty.
Benefits and Considerations:
Offering a GWP can enhance customer satisfaction and brand perception by providing added value. However, businesses need to carefully manage the cost of the free gift and ensure it aligns with their overall marketing strategy to avoid diminishing profit margins.