Common Pitfalls and How to Avoid Them

Free gift promotions are an effective tool for boosting sales and building loyalty, but they can also be tricky to plan and execute. Over time, we’ve spotted some common pitfalls that can undermine the success of GWP campaigns. By learning from these mistakes and taking proactive measures, you can ensure your free gift campaigns run smoothly and meet your goals.

Here are some of the most common mistakes marketers make when planning Gift with Purchase promotions:

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A 10-step guide for sales promotion planning, from goal-setting to post-campaign evaluation.

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Profit Margin: A freebie can eat into your profit margins. So, it’s crucial to weigh the cost of the gift against the anticipated return.

Perceived Value: The gift’s perceived value should match what customers need to spend to get it. If the gift seems cheap, it might look like a marketing trick and turn people off from buying. On the other hand, when the gift has a high value, it can make your brand look better and more high-quality (Low & Lichtenstein, 1993). Find the sweet spot that resonates with your customer base.

Stock Management: Running out of your gift stock can be a recipe for customer disappointment. So ensure you have enough stock to meet the expected demand.