How can gift marketing plays core part in marketing plan?
The exchange of gifts has been part of our culture for thousand years, and it evolved from the trade of presents for the pursuit of peace to our modern-day gift exchange for festivals, holidays, birthdays. It has no doubt that no matter how the culture alters, the smile of the receiver never changes. This has reflected that gift marketing is of high importance.
According to Bob Garfield, we are now in the ‘Relationship Era’. It is believed that gift giving is one of the best ways to strengthen a relationship. With the help of gift marketing, the relationship between retailers and consumers can also be maintained. Through giving gifts to consumers especially to frequent shoppers, it is effective in motivating consumers to spend money. Gifts which are provided to customers can be in the form of vouchers or coupons, hoping to build a relationship in between the two parties so that they have incentive to come again. These customers are willing spend the amount of money which they normally spent so as to use the coupon. In long term, a friendly relationship in built and this helps boosting the sales of the company.
There are several reasons to explain why gift marketing should be placed heavy emphasis in a marketing plan. Taking coupons as example, coupons can help expanding and increase the market area. No one hates coupons, everyone wants to fulfil their desire at a lowest price. There is no denying that consumers will travel far to redeem a valuable coupon. On top of that, old customers can also be re-activated. Sometimes some old customers may be lured away due to the existence of new retailers. Every human being has curiosity and would like to try something new. With the help of coupons, they may be once again attracted and start to make purchases at your company once again. In the meantime, every buyer has freedom to choose where to purchase, meanwhile, there are numerous companies which provide similar services. In order to attract new customers, coupons can be used so that they can break their shopping pattern and take advantage of the coupon offer.
Yet, some consumers may be tired of receiving coupons and deals. In order to stay competitive, it is suggested that retailers can provide gifts on any sizeable purchase, and also, according to their spending habits. This can be done through a frequent shopper program, which is used to track to behaviour of a customer as well as to keep a connection between the two parties. These gifts can enhance their sense of belonging.
Gift giving can also change customer from ‘saving’ to ‘spending’. Gift marketing includes gifts and gift cards. Gift marketing allows customer to purchase, as it serves as an irresistible tool by the retailer to the customer, and the mindset will be changed to spending in stead of saving. For example, some customers may be attracted to the gifts but not the products. Retailers can state that gifts are not available for sell separately, the only way to get the gift is to spend money to a certain amount. This can effectively motivate new customers to spend more so as to get the gift, successfully achieve the aim of the retailer – hoping their customers to spend more.
By giving shoppers a gift, consumers can gain a special feeling to the retailer as gifts regarding their shopping habits may be given. Also, the shift of customer spending pattern from saving to spending can be reached.