Explaining Gift with Purchase in Marketing: What You Need to Know

When it comes to driving sales and building loyalty, few strategies are as effective as a GWP (Gift With Purchase) campaign. It’s a simple yet powerful idea: reward customers with a free item when they buy a specific product or spend above a set amount.

But GWP is more than just “free stuff.” It’s a proven marketing tool that influences buying behavior, elevates brand perception, and strengthens emotional connection with consumers. Let’s dive into how GWP works, why it remains relevant, and how brands can use it strategically.

Packing gift with purchase is crucial in having an effective marketing campaign

What Does GWP Mean in Marketing?

GWP stands for Gift With Purchase — a promotional offer in which customers receive a complimentary item upon making a qualifying purchase.

This strategy can:

• Encourage impulse buying

• Increase the average basket size

• Help clear inventory

• Introduce new or seasonal items to customers

In short, GWP is both a reward and a marketing communication tool. It tells consumers: “We value your purchase, and here’s something extra just for you.”

Why GWP Works: The Psychology Behind the Promotion

A GWP campaign works because it taps into three powerful consumer triggers:

1. Reciprocity – When customers receive something for free, they feel a sense of goodwill toward your brand.

2. Perceived Value – Even a small free item can increase the perceived worth of the main product.

3. Scarcity and Urgency – “Limited-time gift” or “while stocks last” prompts immediate action.

According to marketing studies, 65% of shoppers say they are more likely to purchase when offered a free gift. It’s the perfect balance of reward and incentive, driving conversion without heavy discounts.

Types of GWP Campaigns by Industry

Each industry approaches GWP differently, depending on the target audience, product value, and seasonality.

1. Beauty and Skincare

• Popular Gifts: Mini cosmetic pouches, travel-sized products, vanity mirrors.

• Example: A skincare brand offers a free bamboo facial brush when customers buy a full skincare set.

For example, Sunsilk’s on-pack promotion offered a free mini massager by Ogawa bound together with two large bottles of Sunsilk Co-Creations.  The massager is a pricey item when bought separately, so many customers would see this as a valuable bonus.

Sunsilk hand massager for their GWP Marketing Campaign

Sephora Poitiers in France promoted their products with a branded mini plastic bathtub as a cosmetics display and storage. This durable gift can be kept in anyone’s bathroom as a unique reminder of the brand, right where the products are often used.

The Sephora bathtub is a memorable and durable gift with purchase

2. Tech and Electronics

• Popular Gifts: Branded USB drives, phone stands, or compact speakers.

• Example: “Buy any Bluetooth headphone, get a recycled mini speaker free.”

The ODM can make detailed sketches that visualize how your GWP would look like

3. Retail and Lifestyle

• Popular Gifts: Eco-friendly travel pouches, reusable drinkware, or foldable umbrellas.

• Example: A department store runs a “Spend $100 and receive a free custom ceramic tray” promotion.

A case study: Kilkenny Design Center promoted their new ovenware range by offering a jug and bowl set – designed by the artisan Nicholas Mosse – for spending above 140 euro.

GWP marketing provides a chance to test new products on the market while promoting sales of current products

4. Fashion and Accessories

• Popular Gifts: Limited-edition tote bags or keychains.

• Example: A luxury brand offers a free collectible pouch during a spring launch event.

In this case study, Sanrio and Thermos paired up to offer Hello Kitty flasks to customers who had earned enough stamps from their purchases of healthcare and skincare products.

Sanrio and Thermos collaboration creates popular GWPs in iconic pastel colors

5. Beverage and F&B

• Popular Gifts: Branded glassware, coasters, bottle openers, or tote bags.

• Example: ODM helped develop a custom foldable POS display (ODM-5016) for beverage brands running seasonal GWP activations.

Tips for Running Your Gift With Purchase Marketing Campaign

Here are the steps in setting up a gift with purchase campaign:

1. Set Clear Goals

What do you want to achieve with your gift with purchase promotions? The common goals are:

• Boost sales of products that have a lot of competition
• Increase brand awareness of new brands or a rebranded product
• Promote a new product that is joining your mainstay range
• Reward customer loyalty with thank-you gifts

Your campaign strategy depends on the goals. The clearer the goal is, the easier and smoother it is to plan your campaign.

2. Know Your Customers

How do your customers use your products? What are their pain points that can be addressed with a useful gift?  Or, what do they most like about your product, and how do you make it even more attractive?

Loyal customers want to flaunt the products they love. Thoroughly research their behaviours and preferences to pinpoint the gifts that speak to them.

3. Choose The Right Gift

This is imperative. If you don’t have excess inventory to clear out or a new product to introduce as gifts, then taking some time to brainstorm the gifts with purchase will give you options in cases where the gift production does not go as planned.

Make a list of gifts that are:

• Relevant e.g. a product sample, a useful accessory
• Valuable e.g. exclusive merchandise
• Engaging customers to participate in the bigger promotional campaign

4. Set Minimum Purchase Requirements

The best way is to determine the specific products that qualify for the gifts. This is particularly effective in boosting sales of products that are normally slow-moving or less competitively priced.

You can also set a minimum purchase amount to encourage customers to spend more to get the free gift. However, this may not entice price-conscious savvy customers who realize buying the gift at the market price may cost them the same amount of money. Always know your customers.

Another solution is to give your gifts attractive visuals and copy that stands out on the shelves, qualifying them as collectables.

5. Highlight The Promotion

Time to spread the word about your gift with purchase. Create a promotional calendar with well-timed updates on your website, social media, email newsletters, and in-store displays. Make the best use of on-brand visuals and copy – wow your customers with a pleasing experience.

An important part of a seamless customer experience is unique product designs. With decades of experience, the ODM group can help you customize your promotional products to make them worth a collectable in their own right.

The strong design assistance from the ODM group and our marketing arm Mindsparkz would make sure your gifts with purchase have eye-catching and functional designs that stand out on the shelves.

6. Create a Sense of Urgency

Depending on your goal, consider placing a time limit on the gift offer. Limited offers create excitement around the products, invoking a sense that the customers are not just buying a regular product; they are also participating in an event.

7. Provide Clarity in Terms and Conditions

Many gifts with purchase are attached to the products, so their availability is straightforward. In cases they are not, remember to include transparent terms and conditions in all your promotional materials. This includes training your staff, especially for in-store promotions, so they can effectively answer customers’ questions and potential complaints.

Transparency and clarity are particularly important to build customer loyalty. A loyal following is cultivated with clear messaging, a unique brand voice, and keeping your promises to the customers.

8. Monitor Inventory

Make sure the gifts and the products match each other in stock to avoid overselling or running out of stock during the campaign.

9. Measure Results

Evaluation is essential at two stages:

• When your campaign is ongoing: follow up on customers’ feedback and promptly address any issue.
• When your campaign ends: assess performance.

Assess the impact on sales, customer engagement, and brand visibility. Use the insights gained to refine future marketing strategies.

By incorporating these tips into your gift with purchase campaign, you can maximize its effectiveness and create a positive experience for your customers.

Common Mistakes to Avoid in GWP Marketing

Even the best campaigns can fail if not executed carefully. Avoid these pitfalls:

1. Low-value or irrelevant gifts – Customers may ignore them if the gift doesn’t feel useful.

2. Poor timing – Launching after peak shopping periods reduces effectiveness.

3. Unclear terms – Customers get frustrated if redemption rules are complicated.

4. Ignoring packaging – Presentation heavily influences perceived value.

A thoughtful design and clear communication make your campaign memorable.

Final Takeaway

A GWP in marketing is more than just a freebie — it’s a brand experience. It captures attention, delights customers, and keeps your brand top-of-mind long after purchase.

When executed well, it strengthens loyalty, differentiates your brand, and adds measurable value to your marketing spend.

Planning your next GWP campaign? Contact ODM Group to design and manufacture promotional items that make every purchase feel rewarding.

Get Inspired By These GWP Ideas: