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The impact of a 'Free Gift with Purchase' promotion

The Impact on Revenue of a Promotions Campaign

Promotions have a positive affect on consumers and increase the probability that they will make a purchase.

The IRP Promotions Engine is an extremely powerful tool in enabling Revenue Growth and increase in conversion. Promotions have a positive affect on consumers and increase the probability that they will make a purchase. In this article we are going to look at a specific promotion – Free Gift with Purchase.

What do you get from a promotion that is well executed?

1. Customer Engagement
2. Positive attitude from consumers
3. Increase in sales
4. Increase in AOV
5. Increase in Conversion Rate

There are a lot of variables than can be measured when setting up this promotion, especially if there is a spending threshold that has to be met before the customer will actually receive their free gift. This gives them an incentive to spend that little bit more, therefore increasing revenue.

How do you know what threshold to set your promotion at?

If you visit your Google Analytics Account and view your KPIs report that should be set up: Customization / Custom Reports / Ecommerce KPIs. If your report is not there you can use the following link to create this report for future reference:

This report is extremely useful in finding the current Average Order Value of your top-performing countries, we don’t want to give away free gifts without making a bit of extra revenue in the process. Take your top-performing country by revenue and see what the AOV is. This will give an indication of where we place the threshold. If it is £28.00 you will want to increase this to £30 or even £35 to get the most return for the promotion you are running. Make sure this is inline with all other country-specific AOVs. If the USA has an AOV of £40, then you may want to set a country-specific campaign up with a promotion threshold of £45. The equation can show us how much extra return we can make throughout the period of the promotion:

Visitors X Conversion Rate X AOV = Sales

This promotion is working to increase all three of these factors, resulting in much more revenue and incentive for customers to purchase.


will come from the
attractiveness of the
offer being promoted
on Google / Bing PPC,
Affiliate Window, Social
Media and any other
channels that you may
be associated with.


will be increased by how
good the offer is and that
customers will not be
able to resist.


will be increased by
the customer being
incentivised to spend that
little bit extra in order to
receive the free gift.

Ultimately this is not only about the promotion, but it is building Brand Awareness, Customer Loyalty and Customer Lifetime Value. These are all extremely extensive contributors to the success and growth of your company.

The free gift in this case is a ‘Mystery Bag’. Research has proven that when there is an aspect of mystery in a promotion, it can entice customers even more than if they know exactly what they will be getting free. This is a fun promotion and allows the company to grow brand loyalty and consumer retention.

The Design Strategy of a Promotion Campaign

How your website looks when promoting a campaign is highly important in gaining customer interest and engagement. But when a campaign is pushed out to other channels, it is equally important setting up the correct visual to match across the board. The visual design becomes the advertisement of your campaign and brand, and delivering a consistent message throughout each channel will truly offer an integrated experience.

“Design” not only carries the meaning of a finished work being aesthetically pleasing, it must also function according to its intention with an end goal being met.

Knowing your audience is key. Delivering the right look and relevant message with the right copy will together create an impactful campaign. Think of campaigns as an invitation to your customer. And note also, during seasonal periods, users will be receiving many invitations! You want your customer to choose you. So when it comes to campaign visual artwork, it must firstly stand out from the crowd, look the part, have an enticing and relevant message, give the customer a positive attitude and influence them to act willingly — to accept the invitation (in this case, click through to website).


Increase revenue through brand loyalty and customer retention

An effective campaign design is one that is consistent throughout all channels. Whether the user saw the campaign from a marketing email, PPC, social media or directly on the website, the user must experience a united campaign so that if they happen to stumble across the same campaign elsewhere on another channel, there will be instant recognition and further enforcement of an active campaign, which will hopefully lure them back/to the website, and from there lead them to become a loyal customer.

How successful can campaigns like this really be?

This promotion was set up to run over a six-day period. The promotion was a FREE GIFT with all orders over £30. Data analysis comparing the six days of the offer vs. the six days previous was performed and the following stats were recorded:

Key statistics from the campaign

1873 FREE GIFTS where added to orders over £30.

Country-specific reporting showed an increase of up to 213% in revenue in a particular location over these six days.

The promotion was advertised over four emails as well as across ALL Marketing Channels including PPC, Social Media (Organic and Paid) and onsite advertising, including Desktop and Mobile Homepage and Basket Banners.

Creative artwork used for this campaign

Creative artwork used in the campaign

Why don’t you try it out?

The IRP has many great promotions available for you make use of. One example of a classic PROVEN promotion is the ‘Free Gift With Purchase’ promotion. This type of promotion can be fantastic for increasing Average Order Value as this is normally set up as a Free Gift when you order over X amount.

How to set this up

Decide on the Model within your IRP that will be your ‘Free Gift’. This can either be an active model or, if you would prefer to create a new model, do this within Products > Models and leave it as inactive.

Navigate to the Promotions > Promotions section of the IRP and follow the below steps:

  1. Click on ‘Add New Promotion’ and select ‘Free Gift with Purchase’.
  2. Select whether the gift is ‘active’ or ‘inactive’ on your website.
  3. Add in a Name / Title of the promotion; this will be the used on the Promotion Product Listing Page or on the Basket page to identify the promotion.
  4. Enter an Admin Name; this will be used to identify the promotion within your IRP Admin.
  5. Add in a start and end date for your promotion.
  6. Add in Description, Basket Messaging and SEO.
  7. Click on ‘Insert Promotion’.
  8. Click on the ‘Country Restrictions’ tab if you wish to restrict your promotion per country.
  9. Click on the ‘Basket Restrictions’ tab and enter a rule, e.g. ‘Basket Sub Total | At Least | £30’.
  10. Click on the ‘Free Gift Rules’ tab and enter the Model ID of your gift you have previously set up.

The IRP offers many promotion types and you can get lots of other ideas within IRP Commerce here: Promotions.

Anonymous - Great holistic view of a sucessful promotions campaign. Shows how important research, planning and design all are in generating revenue growth.
18 Apr 2017 11:33
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