What is the #1 marketing tool used by many successful businesses that propel people to buy a product. And, are you using this remarkable tool to enhance your profits–2 out of 3 businesses are not. Below are 10 tips that will help boost your profit margin using premiums.
1. The 3 types of free gifts to consider in your campaign.
Free gifts can be categorized as taking on three forms. You have “ad specialties” which carries an advertising message and is given away with no strings attached. Then you have “premiums”, which are offered as an incentive for a specific action, usually the action to buy something. Some companies use “business gifts” which are given to their employees, customers, and influentials. Business gifts are intended to influence someone as opposed to a motive to buy something.
2. Be creative
With the economic climate being as it is, a free gift is just the thing to encourage the savvy consumer to do business with you. You want to choose an item that fits to what you want to accomplish. By making the promotional item fit what you want to accomplish, you actually build business. Try choosing an irresistible gift that makes it hard for a consumer to pass up.
3. Match the “free gift” with your business theme.
Whatever your objective, be sure to do your homework in connecting the premium to your business or Web site. The act of giving away free pens or calendars just won’t do unless there is a connection between the free gift and your company. Offering a free travel alarm clock premium is a sure bet to reel in a travel affinity. The bottom line being, how desirable is the premium in contrast to the actual merchandise being offered? Your premium becomes a powerful tool when it relates to your product or service.
4. Give products that can be used over and over again.
Regardless of the premium, the most important feature is that it must be practical, and something consumers can use and want. A major advantage of a premium is its practicality. If it passes the “useful test” it can be considered a valuable promotional item.
5. Free gifts should be given to a buying customer only.
Giving away a free gift to a non-paying customer can be viewed as non-productive marketing. After all, the underlying reason for giving a free gift is to get something in return, even if it’s no more than an email address for future contact. It’s your call to decide what the trade-off should be when using a premium.
6. Perceived value should be adequate with your merchandise.
The higher the perceived value of the premium, the more desirable the item will be to the potential recipient. Cosmetic companies give away thousands of promotional products each year. This is highly effective because you buy something that you need, and receive something free in return. As long as the free gift is perceived as saving the consumer something and it is something that they need or want, then you have a winner.
7. Consider your audience’s lifestyle.
Premiums that tap into the target audience’s lifestyle tends to add credibility. You must cater to the taste of your potential customer. If you operated an online auto parts store, you would consider giving away a tool set as opposed to some flower seeds as a free gift.
8. Your free gift should be imaginative and retail savvy.
Swiss army knives, CD’s, books, gym bags, a windbreaker, or a travel clock radio…these are some of the most strongly promoted premiums. It’s not always easy to come up with the perfect premium, because what’s hot today may be pass tomorrow. Promotional products can range in price from pennies apiece to literally thousands of dollars.
9. Research what’s hot and shop around.
You can find many premium distributors and ad specialty companies on the Internet. Another great place to locate promotional items at a bargain is to contact closeout and liquidation companies. These companies often purchase inventories from catalog and specialty ad companies. Promotional merchandise products from these companies can be purchased for pennies on the dollar.
10. Determine a workable distribution plan for your free gifts.
The distribution of your free gift is as important as the item itself. Research shows that a carefully executed distribution plan significantly increases the effectiveness of promotional products. Also, finding a product that is not to heavy, and something that can be easily mailed with the targeted merchandise will provide a smooth transition.
The purpose of a promotional product is to actually promote your company and its products and services. In the final analysis, it isn’t the product that has the power, it’s the impact of the gift on the recipient.
Whether it’s persuading customers to visit your Web site, come to your business, grand opening or party, or think of you when they need what you do (your expertise); premiums can help give power to your message. Premiums are needed to gain market penetration, and combined with required payment with order, response and profits are increased significantly. Adding a premium to your Web site or mailing just might up response. It’s a proven tool that has worked for many over the years.
Copyright 2000-2003, Richard Wills. All rights reserved.
Richard Wills is a marketing consultant and the author of
the popular new book, “The Closeout Report – How to Start Small and Make Big
Profits in the Liquidation Business”. Download a few chapters now:
http://www.thecloseoutreport.com
