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Dive into the Deep End of the Pool this Summer!

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Elite Rewards

Content Marketing Manager

 

 

By: Jeff Magner, VP of Growth & Client Strategy

As we head into the Summer season, retailers and merchandisers are identifying inventory and margins needed to achieve sales success. 

This time of year is riddled with new home buying, home renovations, and the yearly sprucing up of patios and pools in time to enjoy the beautiful weather outside with friends and family. 

Spring time gets the juices going and folks are thinking about enjoying a wide variety of activities. Whether at home or out enjoying nature, now’s the time everyone’s planning for fun, determining what new toys and upgrades they want to get to enjoy the great outdoors this Summer.  

Consumers have become savvy with easy access to online research and product comparisons allowing them to quickly learn about new products, identify the best deal(s) (brick and mortar or online), and choose the best time to make a purchase.

Fortunately, having educated consumers provides an opportunity for you to educate, stimulate and incentivize customers to take action when seeing a good deal they won’t want to pass up. 

However, it also means they’re most likely comparing you with a wide variety of competitors. 

Today, retailers who choose to be aggressive in targeting their ideal customers with special offers have seen the biggest success swaying undecided consumers to select them over their competitors. 

One of the most effective and successful special offer options during the Summer season is promoting an ‘Outdoor Themed’ Gift With Purchase (GWP) program. When implemented appropriately retailers benefit from increased sales utilizing an option that is low risk, high return and requires no upfront monetary investment. 

GWP (Gift with Purchase)

You may already be familiar with GWP, but just in case here is a simple explanation. 

A Gift with Purchase (GWP) promotion is a marketing strategy where customers receive an additional product or service for free when they make a purchase. The strategy leverages the perceived value of the free gift to make the primary product more attractive, encouraging customers to choose it over competing options. 

As we mentioned before, today’s competitive landscape is even more challenging and if you’re a Director of Sales, CMO or Marketing Director for a retailer, it’s probably something you already know. 

The Best Way to Implement a Summer GWP Program

To achieve the best results this Summer, bring all of your stakeholders together (merchandisers, management, sales and marketing, GWP strategic partner) creating a committed team eager to implement, execute and benefit from introducing a GWP program. Collectively determine the best strategy to move inventory and increase sales.

Now isn’t the time for sticking your toe in the water, now is the time for you and your team to dive into the deep end and make a real commitment. Organizationally bring marketing leaders (CMO & Marketing Director) and in-house sales teams together to educate, motivate and excite customers to maximize every sales opportunity during the promotion. 

The Basics

Start by identifying and prioritizing the merchandiser(s) and product line(s) that require or desire you to move more inventory. 

Once the merchandiser(s) and product line(s) have been identified you can begin determining the appropriate “GWP” partner to complement the Summer offer. Understanding the consumer’s behavior and mind set heading into the Summer season provides an opportunity to select items that complement the selected product line. We’ll delve a little deeper into GWP Outdoor “Themed offerings” and the best approach a little later. 

Go Early, Go Big 

The good news is implementing a GWP program can be accomplished within two weeks if necessary or may take a little longer depending on the merchandiser and GWP strategic partner selected. 

Since we’re just heading into Spring there’s a great opportunity for you to maximize “Outdoor Themed” offerings coinciding with home buying, home renovation season and a yearly sprucing up of homes outdoors by consumers this time of year. The key is providing a variety of GWP product offerings at different price points making them attractive to potential customers. 

Examples include fire pits, hammocks, patio heaters, camping stoves, basically select an attractive list of offerings that complement your sales item.

Work with your merchandiser (s), internal sales and marketing teams to identify items that are appealing, timely and strategically priced to create margin but at the same time leaving consumers with the feeling they’ve received a great value and added bonus at the same time. 

Ideally you want to start your GWP promotion before Memorial Day allowing you to capture the early seasonal momentum. 

How Long to Run the Promotion

GWP promotions tend to be typically longer and depend on the market and region of your store. Working together with your GWP partner you’ll be able to establish the most appropriate timeframe for your promotion. 

The following provides the basic approach to implementing an “Outdoor Themed” GWP program:

Launch Phase:

  • Select product(s) to include in the promotion
  • Start with an emphatic, big initial launch to get momentum
  • Create excitement and draw initial customer attention

Duration Recommendations:

  • Start around May, before Memorial Day Weekend and run it through July. 
  • Suggested timeframe is approximately three months
  • Can potentially run longer or shorter if structured correctly, depending on the region or market you are running it. 

Timing Considerations:

  • Continue while people are still buying new homes or upgrading outdoor spaces
  • Stop before “back to school” promotions begin
  • Get out before it’s “too late” in the season (Post Labor Day)
  • Get in before you’re “the last one to the party”

The promotion shouldn’t get “old” if done right, as people always need outdoor products. The goal is to be the destination for these items throughout the key selling season.

How much does the retailer have to invest into a program like this? 

The best part is that there’s no upfront investment or financial commitment. Retailers don’t have to commit to a specific amount, as GWP programs are based on immediate sales and immediate delivery of sales on written business. 

Bottomline, you don’t pay your GWP partner unless you have a successful sale, and by that time, you’re happy to pay.

What type of resources are required by the retailer to implement this type of program? 

Retailers have the flexibility to integrate the program into their existing marketing processes and manage everything independently. 

However, GWP partners also offer full support, providing all necessary resources from start to finish, including:

  • Signage
  • Point-of-purchase (POP) materials
  • Customer handouts
  • Advertising directives
  • Community store communication materials
  • Prize packages for salespeople for motivation

How long does it take to get a return on my investment? 

The best ROI comes from setting up a program where every single transaction is a win, allowing retailers to scale profitably as volume increases.

Immediate ROI Strategy:

  • Set up each transaction to be profitable
  • Ensure positive return on every single sale
  • Example: If a $2,000 sale includes a $200 gift (10% cost), build margins to make that profitable

Key ROI Principles:

  • Focus on gross margin dollars, not just percentage
  • Aim for incremental sales that generate additional profit
  • Create a structure where retailers win whether they sell 10 or 10,000 items

Timing Considerations:

  • ROI can be immediate with properly structured transactions
  • Goal is to generate positive gross margin dollars from each sale
  • “You can’t take traffic to the bank” – only gross margin dollars matter

Specific ROI Drivers:

  • Build in margin protection
  • Create incentives that drive additional sales
  • Ensure each transaction contributes positively to the bottom line.

Are the items that are offered during promotions specific, or do they get to choose among multiple items as their GWP?

GWP partners typically encourage retailers to offer multiple products, allowing customers to choose their gift or participate in a tiered promotion. Most retailers opt for this approach because variety appeals to a wider audience—customers who already own one item may be interested in another. Additionally, offering a range of products at different price points helps increase overall ticket value and attracts customers with diverse needs.

If you’re reading this now, with no plan for how to move inventory this Summer, it’s time to consider diving into the deep end and implementing a low risk, high return “Outdoor Themed” GWP promotion. 

Consumers now have multiple options to make their purchase via brick and mortar or online.

Creating an “Outdoor Themed” GWP promotion that gets them excited, offers great value, and complements their main purchase will make Summer sales sizzle. 

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