New Study Finds Free Gift with Purchase Drives Increase in Customer Retention & Sales

  • Nov 15, 2012

New Study Supports Our Findings: Gift With Purchase Best Way To Increase Loyalty & Retention

Utilizing a free gift with purchase can increase loyalty and sales, according to a new survey.

Austin, Texas: In my many blog posts, I write about the importance of utilizing gift with purchase in your promotional activity — rather than price discounts or a free sandwich after 10 concept.

An new study from Harris Interactive and commissioned by IDR Marketing Partners reveals about two in five Americans are very-to-extremely likely to purchase more often from a shopping Web site after receiving a free gift and another 40 percent of Americans are somewhat likely to.
The survey also goes on to show that:

  • Consumers Come Back for More: Almost 90 percent of free gift receivers indicate that they are at least somewhat likely to buy more frequently from an online retailer after receiving a free gift.
  • Shoppers React Favorably to Something Extra: Sixty-five percent of free gift receivers say they are at least somewhat likely to share their experience with others online, about half offline.
  • Online Retailers Urged to Include Free Gift: Online retailers see value in including a free gift with customer orders, though less than half do.
  • Women More Likely to Share: Of the four out of five Americans that are at least somewhat likely to share their experience with others offline about a shopping site after receiving a free gift with purchase, women are found to be significantly more likely to share their positive experience than men.

A free gift with purchase should not be another item that you sell – but something that can be complementary or even non-related.

We did thousands of convenience store and car wash promotions where the consumer received free watches,free music downloads, free watches, etc. — but not free gasoline or an extra car wash — and had sales increases that averaged over 18% – with a high retention rate 6-12 months after the promotion ended.

A gift can also be complementary–such as a booklight when buying $50 in books, or a music download card when buying a new MP3 player.

The key is that the gift has a high perceived value – higher than a coupon or free gasoline or an extra sub sandwich. In addition, the free gift has trophy value and will be remembered long after the money savings have been spent or the gasoline, soft drink, sandwich, free car wash etc has been consumed/discarded.

Make your next loyalty or incentive program more effective by choosing the right gift with purchase.

Your customers will be glad you did.

And you will be pleased with the bottom line profits, as well.

  • Category: Blog, Retailer Incentives
  • Tags: free gift with order, gift with purchase, gift with purchase promotions