Gift with Purchase (GWP) is a sales promotion technique where customers are offered a second product for free or at a discounted price upon meeting a specific condition set by the store. This time-tested tactic has proven to be effective as customers find it hard to resist the opportunity to receive something for free. Moreover, it acts as a catalyst to encourage customers to spread the word and share the promotion with their friends, thus raising brand awareness.
Razer has a GWP promotion offering a free Razer Skins worth $59.99 with every purchase of a Razer Blade 14 laptop. When an item of substantial value is offered for free, it gets people to talk about and share the ‘opportunity to get something for free’ with friends and family. Hence, promoting the product. This is an effective way to capture the interest of visitors who initially had no / low intention of converting into a customer, resulting in more sales with lower CAC.
Overall, when done correctly, GWP promotions can lead to increases in sales and conversion rates, as well as lower CAC, as shoppers spread the news and invite others at no cost to get the free gift.