Sunday, June 13, 2010

Marketing Monday: Gift With Purchase

Many articles on promotion include lots of things a seller can do to make a customer feel satisfied with their purchase: a quality product, great customer service, a thank you card ...
The cosmetic industry heavily uses a 'gift with purchase' to entice customers to shop, as well as to come back.

photo of Estée Lauder

The practice began with Estee Lauder. In the 1920s and 1930s, she offered beauty parlor customers a dollop of free cream on wax paper. The idea grew in the 1950s, because of a tight advertising budget. The Lauders "hoped sampling would create a more direct & personal connection with consumers."

Cosmetic Counter

"The giveaways & the later gift-with-purchase that Estée pioneered created an opportunity to exercise Lauder's sales approach, encourage spontaneous buying, & increase customer loyalty."
"Competitors began to copy the innovation. By the late 1960s, most major cosmetics firms regularly used the gift-with-purchase to drive traffic to their counters, and this practice remains an important tool today in marketing beauty products."

We can use this same giveaway or gift-with-purchase practice to build customer loyalty to our own shops. What some Etsy Trashion members are giving away:
  • Jodi of tubbytabby surprises her customers with a little something unexpected.
  • Tammy of junck also likes to surprise her customers with a photo or stickers.
  • Pam of remaker adds Matchbook Notebooks, stickers, Etsy buttons, & also % off coupons for a customer's next purchase.
  • Jackie of urbanartifaks includes recycled notebooks & jewelry pouches made from recycled t-shirts for her pendants.
  • Rhonda of oddartist collaborates with other Etsy sellers to swap small promotional items. These items will then be sent out to a more diverse group of buyers.
What do you give away?

source & photo credits: Harvard Business School