Gift with Purchase (GWP) is a marketing promotion where a retailer offers a free gift to customers who purchase a specific product or spend a certain amount of money. This tried and true technique has proven to demonstrate that buyers have a difficult time turning down the opportunity to receive something for free. It also serves as a catalyst to encourage buyers to share the promotion with friends, thereby increasing brand awareness.
Estée Lauder has an ongoing GWP promotion that is exclusively online, offering a free 7-piece gift worth up to $165 with any $45 purchase. Also, customers are able to customize the gift that they would like to receive by spending more. This is an effective way to capture the interest of audiences who initially had no intention of engaging with them, resulting in more sales with lower CAC. Additionally, by spending more to qualify for better gifts, the Average Order Value (AOV) is increased as well.
Overall, when done right, GWP promotions can also lead to increases in sales, lowered CAC, and increased AOV as shoppers bring other shoppers for free to get the free gift.