BOGO means Buy One Get One Free or Buy One and Get One at a Discount. It is a popular choice for retailers because they know consumers like getting deals, and they love the word free. When consumers see BOGO, their perception is that they are getting a great deal. Perception is very important in marketing.
Studies have shown that when consumers see 50% off or free they are more willing to buy.
“Zero/free is a source of irrational excitement; it’s called the ‘zero price effect,’” writes consumer psychologist Paul Marsden for Brand Genetics.
Consumers will often trade up and pay more just to be able to get a free gift or bonus, such as free shipping. And they’ll wait in line for absurdly long times or go to extraordinarily long lengths to get something for free… Free is the most valuable word in marketing.
How it works
Oftentimes, retailers may have a surplus of inventory. The inventory may not be selling well or fast enough, but that doesn’t make it less valuable. A BOGO campaign allows you to move this inventory and generate cash quickly.
Here’s an example: Let’s say you pay $3 for a product that you sell for $10. If you offer a 50% discount, you’d be making $2 from selling just one at the discounted price. However, running a BOGO discount means you can sell one item at full price minus your cost for two items. The result is a profit of $4. With more consumers buying that product as a result of your promo, your profits would soar.
BOGO can boost marketing campaigns more efficiently.
BOGO is a proven sales tactic with many variations. It creates a sense of urgency, pushing customers to make a purchase. On the other hand, a flash offer prevents customers from getting used to buying on the discount terms. The Buy One, Get One Free strategy is a great discount technique to use to appeal to your target audience. Using multi-media platforms to shout out your offer can help you target a specific audience and reach a larger base of consumers.
BOGO is a win-win for both consumers and retailers.
According to a recent report from AMG, 67% of consumers admit that they like BOGO the most out of all discount promotions and 95% of respondents report that they have taken benefits of BOGO promotions at least once. While consumers think that they’ve got a good deal from a website, sellers receive both profit and consumers’ satisfaction which has long-term benefit to your business.
How a BOGO Sale Can Help Your Business:
- BOGO provides a quick solution for moving surplus stock and seasonal merchandise
- By receiving cash for slow-moving stock and seasonal merchandise, cash can be strategically re-invested elsewhere
- BOGO promotions have been proven to convert better than other discounts
- Increases engagement and conversion rates
- Attracts new consumers,
- Activates dormant consumers
How to start a BOGO Sale:
BOGO can be implemented in your e-commerce platform with a BOGO plug-in. While some plug-ins are top notch and function exactly as described, others may be buggy, out of date, file-heavy, or they lack security. Therefore, it is important to have a webmaster install the BOGO plug-in to make sure it is compatible with your existing website. Devadigm can help! Schedule a call to discuss how a BOGO sale can help your business and other ways that Devadigm can help you generate additional sales.
When executed properly, BOGO can help you reach higher sales, bigger orders, and better conversion rates. A well-executed Buy One, Get One deal is a plus for your business and for your shoppers.
