How Oatside uses the GWP tactic to increase profit margins
June 23 2023
GWP is a sales promotion technique that offers customers a second product free or at a discounted price. Oatside, an oat milk brand, used this tactic to offer free shipping and a free big pocket bag worth $20 with every purchase.
Gift with Purchase (GWP) is a sales promotion technique in which a customer is offered a second product free or at a discounted price upon meeting a specific condition set by the store. This time tested technique is proven to show that buyers find it hard to turn down the opportunity to get something for free and also act as a catalyst to get buyers to share the promotion with friends, and hence raise brand awareness.
Oatside, an oat milk brand uses this tactic on their digital storefront, here's how: In June 2023, Oatside ran a GWP promotion that offers 'FREE shipping’ and a 'FREE big pocket bag’ worth $20 with every purchase of 2 cases of Oatside pocket packs. The word 'FREE’ not only never fail to grab people's attention but also gets people to share the ‘opportunity to get something for free’ with friends and colleagues. Hence, helping promote the product.
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.
Overall, when done right, GWP promotions can also lead to increases in sales and lower CAC as shoppers bring other shoppers for ‘FREE’ to get the ‘FREE’ gift.