Surveys have found that most consumers say that receiving a free gift when purchasing a product can increase their brand favorability and loyalty. Consumers are likely to purchase products more frequently after receiving a free gift. Cross-border e-commerce sellers like to use gift promotion strategies. Gift promotion is a very popular sales incentive method used to encourage consumers to buy. There are 6 benefits of gift promotion:
(1) Gift promotion maximizes product sales without reducing prices or damaging brand value, effectively avoiding the losses caused to the company by product discounts and price cuts.
(2) Gift promotion eliminates the price barrier in the consumer decision-making process. Gift promotion makes consumers feel that they have obtained more value, which in turn increases the possibility of transformation for sellers.
(3) Carefully planning and implementing the right gift promotion activities can not only make consumers have a strong interest in the seller’s business and brand, but also encourage them to actively share products. In fact, a portion of gift recipients said that they would share their experiences with others online to a certain extent. These positive comments are priceless to sellers.
(4) Gift promotions can enhance the brand’s competitive advantage, that is, gifts may be a small incentive for consumers to switch from another brand to this brand. Therefore, sellers or brands that can provide consumers with additional value have a more obvious competitive advantage than sellers or brands that cannot.
(5) Gift promotions provide sellers with an opportunity to clear inventory by giving away another product as a gift.
(6) Gift promotions can stimulate repeat purchases. If products of this brand are given as gifts, consumers have the opportunity to try products they would not normally buy, so that they can have a deeper understanding of the brand’s product range and quality, as well as this brand.
To further optimize the performance of gift promotions, sellers need to consider the following:
(1) Choose the right gift. The gift provided should reflect the consumer’s consumption and stimulate their interest. The gift should be a special (only belonging to this brand) product or service to complement the product purchased by the consumer. If the company is familiar with the target market, then the company has a good grasp of the consumer’s interest habits and the products that can attract their interest.
(2) Use appropriate promotional and marketing strategies to support giveaway promotions. Sellers should let as many people as possible know about the discount and highlight the limited-time nature of the discount to stimulate sales.