Gift with purchase strategy: Boost your beauty brand's revenue

Let’s be honest, competition for customer attention is fierce.

Whether you’re a new beauty business entering the market or one with an established presence, customer loyalty and retention are always top of mind.

Thus, enter GWP. What is GWP? It stands for gift with purchase, a strategy where brands offer a free gift with purchase. These strategies aren’t just a holiday gimmick; they’re a proven way to:

• Increase revenue
• Drive repeat purchases
• Build long-term loyalty

But, let’s look at the numbers: 

• Beauty brands using GWP promotions have reported an average 15-20% increase in sales during the time of promotion. 
• 90% of consumers shared that a free gift with their purchase makes them more likely to buy from the same brand more frequently – hello, retention.
• 92% of customers who received a gift were also more likely to refer the brand to others – hello, referrals. 

This guide breaks down why GWPs work, when to deploy them, and how to execute them in a way that strengthens your brand story rather than cheapens it.

Why gift-with-purchase works for beauty brands

GWP strategies tap into fundamental customer psychology. 

Here’s how:

• Perceived value: A “free” gift makes the purchase feel like a better deal, even if the buyer pays slightly more in order to receive it.
• Reciprocity: Customers who receive something extra are more likely to return the favor by purchasing again or recommending your brand to others.
• Brand sampling: Gifting minis or trial sizes lets shoppers experience more of your line, increasing upsell potential later.
• Emotional connection: A thoughtful gift can turn a routine transaction into memorable moments.

Dan Ariely, the author of Predictably Irrational, puts it beautifully: 

“I believe the answer is this. Most transactions have an upside and a downside, but when something is FREE! we forget the downside. FREE! gives us such an emotional charge that we perceive what is being offered as immensely more valuable than it really is.”

Brand example: Kosas

Cosmetics brand, Kosas, frequently runs deals and giveaways during holiday seasons or at random times throughout the year. Recently, they ran a GWP campaign where if a customer spends $125, they receive a free beauty gift with purchase, the Mini Double Cleansing System. Encouraging customers to spend $125 or more. 

Timing your GWP campaign for maximum impact

The opportunities for gift-with-purchases are quite endless and depend on you and your beauty brand. But let’s get one thing straight, GWP campaigns aren’t just for Christmas. 

Beauty brands are using GWP strategies for:

• Holiday events: Black Friday/Cyber Monday, Valentine’s Day, or Back-to-School time
• Limited launches: Giving away samples of new product launches with purchases 
• Loyalty milestones: Customer anniversaries or hitting a certain number of orders 
• Slow sales periods: During slower periods, use GWP campaigns to spark urgency 

Or some brands, like Sephora, always have GWP campaigns on the go. They tier them so that if a customer spends $15, they get one gift, but if they spend over $30, the quality of the gift improves. They do this across multiple purchase ranges and brands… I’d be lying if I said I haven’t added more to my cart just to hit the free gift I want… 

Tips and gift with purchase ideas for choosing the right giveaway

• Stay on-brand: The gift should match your aesthetic and product line. A skincare brand gifting branded scrunchies? Great. A random pair of sunglasses? Not so much.
• Keep quality high: Low-quality freebies can cheapen your brand (similar to corporate swag), think luxe minis and not plastic trinkets.
• Offer exclusivity: Make gifts limited-edition or tied to a seasonal campaign to create urgency.
• Control costs: Use private-label partners like Blanka to create affordable, branded minis without large MOQs.

Gift-with-purchase implementation strategies

A great GWP idea is only as strong as the way you execute it. 

To make sure your offer doesn’t get lost in the noise, or worse, cut into profits without delivering results, you’ll need a clear plan. The tips below will help you roll out your GWP in a way that maximizes impact, boosts AOV, and builds lasting customer loyalty.

1. Set a clear threshold: For example, “Spend $75, get a free travel-size serum.”
2. Use social proof: Share unboxings, influencer hauls, and customer UGC to amplify FOMO.
3. Bundle strategically: Pair bestsellers with new launches to introduce customers to more products.
4. Promote everywhere: Email, SMS, website banners, and social media platforms like Instagram Reels should all highlight the offer.
5. Measure results: Track AOV, repeat purchase rates, and referral traffic to measure success and refine future campaigns.

Avoid these common GWP mistakes

But like with everything, there’s room for error. And GWP campaigns are not excused from these.

Some common GWP mistakes we’ve seen to avoid are: 

• Generic gifts: If it doesn’t reflect your brand values, skip it. Don’t gift customers with something they’ll immediately throw away. 
• Overcomplicated rules: For example, “Spend $50—but not on X category” frustrates customers and confuses them. If they think they’re getting the free gift and, after payment, realize they didn’t, you can hurt loyalty rather than build it. 
• Underestimating fulfillment: Ensure your partners and supply chain can handle the surge in demand before launching the campaign. 

How to make GWP part of your brand DNA

Gift-with-purchase works year-round as part of a customer loyalty and relationship-building strategy. 

It’s up to you as a beauty brand to come up with unique, creative ways to leverage this tactic. 

For example, you could:

• Include handwritten thank-you cards and a restricted sample in VIP customer orders.
• Reward referrals with exclusive GWPs.
• Use seasonal themes (e.g., “Summer Glow Kits”) to make recurring campaigns fresh.
  

Blanka’s private-label beauty products make it easy to create on-brand gifts without high inventory risk. This helps to relieve you of some of the potential challenges we mentioned above and instead helps you scale promotions without compromising quality.

Gift with purchase strategies to boost revenue

Gift with purchase isn’t just another tactic. Done right, it’s a powerful strategy to boost AOV, drive revenue, build emotional connection, and turn one-time shoppers into loyal advocates.

When your gifts reflect your brand’s quality and values, they do more than sweeten the deal; they tell your story, showcase your range, and keep customers coming back.

By planning strategically, tracking results, and using reliable partners like Blanka, you can scale GWP campaigns that excite customers while protecting your profit margins. In 2025 and beyond, GWP campaigns are smart investments in building long-term beauty brand loyalty.