Stop slashing margins. Learn how gift-with-purchase campaigns boost AOV, loyalty, and engagement while protecting profit with Abra + Tapcart.
So now we’re just giving things away? What’s next? Paying customers to take our products?
Bzzzzt. Wrong.
Done right, running gift-with-purchase campaigns can actually improve your bottom line.
Instead of subtracting from your margin the way discounts do, gifts add perceived value. A tote bag that costs you $3 to produce can feel like a $15 bonus to the customer. That’s a lot more margin-friendly than knocking $15 off the order total.
Studies back it up: gifts reduce returns, boost purchase intent, and create loyalty (Harris Interactive) that a plain “20% off” banner can’t touch.
One of the most famous studies comes from behavioral economist Dan Ariely, author of Predictably Irrational. He tested whether people would pay 14¢ for a Lindt truffle or 1¢ for a Hershey’s Kiss. Most picked the truffle. But when he dropped the Kiss to free, nearly everyone switched, even though the price gap stayed the same.
That’s the irrational pull of “free.” It lights up the brain. And when it shows up live in-app it’s even more undeniable. Studies show branded mobile apps can actually increase customer engagement and spending, which means your “free” gift has an even bigger impact when it’s right there in the app experience.
Language matters, too. Research shows simply framing something as a gift instead of a bonus or extra increases purchase intent. (Intl Journal of Research in Marketing) It taps into what I’ll call the “treat yo’self effect.” Not exactly peer-review approved, but you get the point. Shoppers feel indulged rather than marketed to. On mobile, Tapcart keeps that gift front and center, so the indulgence doesn’t get lost in the shuffle.
And here’s a stat worth noting: in retail studies, customers who received a free gift were less likely to return their purchase compared to those who didn’t. (Wiley: Psychology and Marketing Free creates reciprocity. It sparks dopamine, good vibes, and a subtle sense of obligation to keep the item.
Gift-with-purchase campaigns shine when: