People always like to get more for less. The BOGO (Buy One Get One) offer allows this. Additionally, you can use it to offload excess inventory, helping you still have a profit margin. This is especially tempting, as people have a hard time saying no to freebies.
What is a BOGO sale?
BOGO, get one and get one, that’s what it means. This statement is self-explanatory but there is some pricing psychology behind this approach. If you sell a ticket for $100 and it’s a BOGO offer, the buyer immediately lowers the price in their head to $50 per ticket.
While this is like a one-on-two offering, BOGO has an additional social component. You see, it’s not just a good deal, the buyer immediately starts thinking about who I can get or share it with.
Two-for-one bidding is a great tactic for items you personally consume individually. For example, two soaps for the price of a loaf or two of bread is fine for me, it’s a good deal. But BOGO is an effective strategy when the extra ticket or item can be shared with someone else.
When to use BOGO promotion:
1. To move inventory when you have a lot of stock to shift.
2. Selling edible products that have an expiration date.
3. For unit-based and bulk products.
1. Reserve your BOGO promotion for the holidays. During the Christmas period, you can offer “Buy, Let’s Give to Others for You”.
2. Make sure your customers have easy access to your BOGO offer. Efficiency equals sales.
Buy One Get One: How to use BOGO offers?
Marketing initiatives that rely heavily on discounts can create two situations that are not ideal in the long run. First, you can make your customers overly addicted to discounts. You can inadvertently condition them to think that another discount or offer is just around the corner. That’s why they never buy anything at full price and always expect a promotion. Also delaying the purchase and your income along with it.
Additionally, because they get discounts so often, customers are more likely to ignore individual campaigns, which will reduce your overall marketing engagement. But most importantly, discounting too much can erode gross margins.
Consumers will trade and pay more to receive a free gift or bonus, such as free shipping. And they wait absurdly long queues or take extraordinarily long trips to get something for free… Free is the most valuable word in marketing.
So how can you use the “psychology of free” in your promotional activities and discount strategy? Try BOGO promotions. They’re great at sparking interest in new products, driving sales on idle inventory, and promoting sample versions of subscription items.
Shoemaker Reebok uses it to help sell the products it has in stock and whose user base is likely to need more than one product. In this example, Reebok is targeting activewear buyers who exercise more than one or two days a week.
How do you promote a BOGO?
February definitely calls for BOGO (Buy One Get One Free) deals, allowing your customers to offer a product to their loved ones at no extra cost. BOGO is one of the most common sales promotion techniques used by both restaurants and retail stores.
While promoting BOGO deals on your website and social media pages is crucial especially during the current crisis, promoting the deal in store will also help you achieve your goals! Your locations offer many great opportunities to advertise your promotions. Here are some of the ways to let your customers know about your BOGO deals:
• Outside the store: Posters in the windows, wrap-ups and brochures distributed by staff.
• On tables and products: Table mats, iPads, TVs can be great accessories for your occasion. You can also place scan codes on napkins or coffee cups.
• At the cashier: Employees can inform customers about the opportunity. You can also promote with flyers placed on staff uniforms, bags or stickers on customers’ receipts.
BOGO deals are win-win strategies: They make customers feel spoiled and grateful because they love to get a good deal. And in turn, they increase customer satisfaction and loyalty and can help businesses not only make additional sales, but also attract new customers!
Executed correctly, Buy One Get One deals can be incredibly effective tools for delighting your customers on Valentine’s Day! Feel free to contact Shopiroller to start your BOGO deal!
Buy One Get One: Examples of sales promotion
BOGO promotions can be very flexible. We will review five different types of BOGO promotions you can use to increase sales in your online store and share some BOGO examples for inspiration.
Buy One Get One Half Price: This tactic will work great if you have a bestseller in your store. The “Buy One, Get 50 Off” deal will tempt those who hesitate to try it. With BOGO Half Off deals, customers will get more of your legendary product, love it and come back soon.
Buy A Category A and Get a Category B One Free: Matching products from different categories is a great opportunity for seasonal products and target audiences.
Buy One and Get a Free Sample: By providing free samples, you allow your customers to test real products. Samples look like gifts, but you should also think of them as investments: they create potential future demand for your products. Include specific examples of your new product line to introduce to your customers.
Buy Three for the Price of Two: This is one of the most common variations of the BOGO promotion. It works for many types of products and seems like a very good deal. Remember to keep the terms simple: Include products with similar prices. This will simplify perception and avoid hesitation.
Buy Item X and Get % Off Item Y: This is an easy-to-implement tactic for industries involving complementary goods, sports, beauty or electronics. For example, you could sell a pair of sneakers and get 30% off shoe cleaners. This type of promotion helps you sell accessories and complementary products.
Buy One Get One: Best Practices for BOGO Promotions
To get the most out of your BOGO deals, keep the following practices in mind:
- Strategically time your BOGO promotions. For example, you can run Bogo’s during the holiday season or Black Friday.
- Inform your customers in advance of the terms of your BOGOF agreements.
- Choose products carefully, make sure they complement each other and appeal to your target audience.
- Do not run too many BOGO promotions at once, otherwise your customers may be confused.
- Monitor your sales data and adjust your opportunities accordingly. For example, there is no need to constantly submit BOGO offers for products that sell well on their own.
Buy One Get One: You’re Ready to Run Your First BOGO Promotion!
BOGO promotions are a great way to increase sales, get rid of excess stock, increase the number of items per order and attract new customers. Used correctly, BOGO opportunities can help you achieve your business goals and increase your bottom line.
Now you have everything you need to know about BOGO promotions, Shopiroller has all the marketing features you need to start selling online. Learn more!
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