Giving free gifts to customers is a marketing practice that has begun to be commonly used to boost sales figures, including while on promotion. However, not a few are still misunderstanding this one program, and consider the costs incurred are not commensurate with the results that can be achieved.
Is that true? So that there are no more misunderstandings, let’s discuss things together about free gifts!
Free Gift Meaning is…
Free gift means free gift. Perhaps, because of this understanding, there are still many business owners who feel that this one marketing activity is not the right way to increase sales.
It’s only natural, right? Free gifts will of course be counted as expenses. So, it is not strange if there is an assumption that giving free gifts to customers is just a ‘money-burning’ program. In fact, if we focus more on the benefits provided, actually the money burned by implementing this system can also provide much greater business benefits, you know; especially if the gift is given for free with special terms and conditions.
Depending on the implementation of the program launched, business owners can maximize the promotion gift given to customers not as mere expenses, but as incentives that can encourage customers to make more purchases. If these goals are achieved, of course, the prizes given can be counted as short-term investments, instead of other expenses outside of production and distribution costs.
In other words, free gifts are not much different from other types of marketing activities like coffee shop merchandise. As long as it can provide reasonable profit projections, this promo program can’t hurt to try.
Some businesses, for example, only provide this privilege to customers who have made transactions with fantastic value. So, even though the terms and conditions specified at first glance look easy, it is not impossible when you want to fulfill these conditions, a customer must increase the value of the transaction significantly.