Discount, rewarding points, free gift etc are three among several methods to increase revenue. They might be s short-term strategy used when inventory is moving slower than expected, or even a long-term one for building customer loyalty scheme.
It is a fact that not all discount techniques are created and launched effectively. If other traditional methods seem to be less favourable to customersnowadays, Buy One, Get One (BOGO) is still a powerful promotion tool. According to behavioral economics researcher Dan Ariely, shoppers generally overvalue the benefits of “free” even when compared to higher-quality items at a discounted price.
To help you boost sales and profits, we point out two benefits of BOGO.
Moving Inventory While Profiting
Forget your anxiety about your less desirable inventory because BOGO can help you get rid of them quicker but still brings you profit. Instead of lowering the price of those items, just offer one item for free together with selling another at the initial price. The customers’ behavior would surprise you about the difference between the two methods which seem to have similar revenue. It can be explain by human psychology as to shoppers, no matter how large the discount, it does not stand a chance against “free.”
Better Response from Shopper
It is undeniable that BOGO is a win-win situation for both retailers and consumers. According to a recent report from AMG, 66% of shoppers admit that they like BOGO the most out of all discount promotions and 93% of respondents report that they have taken advantage of BOGO promotions at least once. While shoppers think that they’ve got a good deal from a site, sellers gain both profit and customers’ satisfaction which has long-term benefit to any business.
Easy to set up, simple to run, lots of benefit to gain, get Free Gifts app to create your BOGO today!
1. Buy One get One (BOGO Sales)
Buy one, get one free is a marketing technique which is used by retailers to boost their sale. This is used very effectively. For example many customers will not need a certain item but after seeing buy one, get one free deals they will decide to purchase it because they believe it is good value. This way customers end up purchasing products which they did not need or have the intention of buying in the first place
2. Buy X get Y free
There is a native “buy X get Y” sales rule in promotions. This free gift program is attractive enough for your customers to come and buy something from your store. An extends of this rule, Buy X get a free product from some category. Or buy a product from a category and get free a product from another category.
3. Buy X Items get Y free (X is number of products)
This Gift rule is set up based on shopping cart quantity. For example: if you buy 3 items, you can get a specific product as free gift. Your customers will receive a free gift as long as their purchase is more than 3 products. This rule is believed to be extremely convenient because its flexibility. Your clients will get a freebie when they buy more 3 items without considering whether what they buy are the same or not. They can buy 3 kinds of products and then get a free gift instead of buying 3 products A and then get 1 product A again which isn’t necessary for them anymore.
An extends of this rule: Buy 3 items get a free item in some category, or some brand or some type.
4. Spend more $1000, get a free gift
Aside from giving free gifts based on the quantity, you can reward gifts for customers based on the order.For example: If your customers purchase more than $1000, they can get a free gift. Customers want to get more freebie, they will have to buy more to reach the number of $1000. Even, when the customer’s need is only $900, they will try to find and buy more product to equal $1000 and get free gift. This enables your sales to increase and as a result, your revenue will significantly be improved.
An extend of this rule: Spend more $1000 get a free item in some category, or some brand or some type.