It doesn't matter what you call them-giveaways, promotional products, marketing gifts, marketing incentives or freebies; they have become an intricate part of marketing tactics around the globe, and their success is unrivaled. According to a recent PPAI (Promotional Products Association International) study, marketing gifts have surpassed the $14 billion mark. Do they really work?
In short, yes, absolutely, marketing incentive programs do work, and they tend to work better when there's a professional marketing company running your program. A program run correctly can attract new customers while keeping existing customers investing in new products, all while bringing in referral business as well. However, incentive gifts have been known to get a little excessive, and here are just a few examples.
Automobile: Your first thought is probably, who in their right mind would give away free cars as marketing gifts? Does the name Oprah Winfrey ring any bells? Back in 2004, she began a partnership with Pontiac to pull off an on-air stunt. Every studio audience member received a marketing incentive that they will never forget. Each person was given a Pontiac G6 automobile. 276 audience members received a car, with a total cost to Pontiac and Oprah of $8 million. This led to a lot of publicity for both of them, yet it wasn't all positive. Even though these were marketing gifts, owners were still expected to pay sales tax for their gift, which ran into amounts that many could not afford. Giving away marketing gifts, even costly ones is a fine idea, but it's important to be upfront with customers if your "free" gift isn't really free.
Fuel: If you are into extravagant marketing incentives, check out these two California car dealerships. A couple of dealerships that are located in front of each other competed with the marketing gifts they offer. At the beginning, it was rather innocent where both offer marketing incentives such as an oil change, a tank of gas, detailing and undercoating all for free. At present, one of them has closed down, and the remaining one is stuck still paying for the marketing gifts they offered. The deal was to give "free gas for life" for new car buyers, with approved credit. More than 100 customers bought a car during the promotional period. One wonders if the dealer ever considered gas price hike when they implemented the program.
Diamond Ring: As far as marketing gifts go, this isn't necessarily an outrageous idea on the surface, but I think it qualifies as a bit "off the mark." A car dealership in Utah was offering marketing incentives in the form of a diamond ring to any customer who purchased a vehicle in excess of $30,000 and put a down payment of at least 33 percent. Okay, a diamond ring is great, who doesn't like diamonds? The problem is that these marketing gifts were in the form of a diamond solitaire ring, which is generally reserved for individuals looking to propose marriage. Marketing incentives should be items that will be appreciated and treasured, but this seems to take it a bit too far.
If you have the budget to utilize any of the aforementioned marketing gifts, be sure you spend wisely. For most businesses though, finding the right mix of marketing incentives involves items that customers will appreciate, yet won't make them feel like you are just trying to "buy" their business or admiration. A professional incentives company can devise the perfect marketing gifts program for your needs.
In short, yes, absolutely, marketing incentive programs do work, and they tend to work better when there's a professional marketing company running your program. A program run correctly can attract new customers while keeping existing customers investing in new products, all while bringing in referral business as well. However, incentive gifts have been known to get a little excessive, and here are just a few examples.
Automobile: Your first thought is probably, who in their right mind would give away free cars as marketing gifts? Does the name Oprah Winfrey ring any bells? Back in 2004, she began a partnership with Pontiac to pull off an on-air stunt. Every studio audience member received a marketing incentive that they will never forget. Each person was given a Pontiac G6 automobile. 276 audience members received a car, with a total cost to Pontiac and Oprah of $8 million. This led to a lot of publicity for both of them, yet it wasn't all positive. Even though these were marketing gifts, owners were still expected to pay sales tax for their gift, which ran into amounts that many could not afford. Giving away marketing gifts, even costly ones is a fine idea, but it's important to be upfront with customers if your "free" gift isn't really free.
Fuel: If you are into extravagant marketing incentives, check out these two California car dealerships. A couple of dealerships that are located in front of each other competed with the marketing gifts they offer. At the beginning, it was rather innocent where both offer marketing incentives such as an oil change, a tank of gas, detailing and undercoating all for free. At present, one of them has closed down, and the remaining one is stuck still paying for the marketing gifts they offered. The deal was to give "free gas for life" for new car buyers, with approved credit. More than 100 customers bought a car during the promotional period. One wonders if the dealer ever considered gas price hike when they implemented the program.
Diamond Ring: As far as marketing gifts go, this isn't necessarily an outrageous idea on the surface, but I think it qualifies as a bit "off the mark." A car dealership in Utah was offering marketing incentives in the form of a diamond ring to any customer who purchased a vehicle in excess of $30,000 and put a down payment of at least 33 percent. Okay, a diamond ring is great, who doesn't like diamonds? The problem is that these marketing gifts were in the form of a diamond solitaire ring, which is generally reserved for individuals looking to propose marriage. Marketing incentives should be items that will be appreciated and treasured, but this seems to take it a bit too far.
If you have the budget to utilize any of the aforementioned marketing gifts, be sure you spend wisely. For most businesses though, finding the right mix of marketing incentives involves items that customers will appreciate, yet won't make them feel like you are just trying to "buy" their business or admiration. A professional incentives company can devise the perfect marketing gifts program for your needs.
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