Table of Contents
Did you know that free gifts can increase your store’s AOV by up to 30% (according to edrone)? This powerful sales tactic creates a win-win scenario: customers feel rewarded while your revenue grows. The impact of free gifts on average order value is undeniable – they encourage shoppers to spend more to qualify for the bonus item, while also boosting customer satisfaction.
But how can you effectively implement this strategy? The free gifts for WooCommerce plugin provides a seamless solution, allowing you to automatically offer free gifts based on conditions like order value, product quantity, or specific promotions.
Let’s see how WooCommerce free gift allows you to unlock higher sales and happier customers!
What is Average Order Value (AOV) & Why It Matters?
Average Order Value (AOV) is a key e-commerce metric that measures the average amount spent each time a customer places an order. It’s calculated by dividing your total revenue by the number of orders.
For example, let’s say your online store had the following sales data in one month:
- Total Revenue: $10,000
- Total Number of Orders: 200
As a result, the AOV can be calculated like this:
AOV = 10,000/200 = $50
This means, on average, customers spend $50 per order this month.
Why AOV Matters?
A higher AOV means more revenue without needing additional customers. By increasing AOV, you can:
- Boost profitability
- Offset customer acquisition costs
- Improve marketing ROI
One of the most effective ways to increase AOV is by offering strategic free gifts. When customers know they’ll get a free product by spending slightly more, they’re motivated to add extra items to their cart. This simple tactic can lift AOV by 15-30% while enhancing customer satisfaction.
Want to experience the Impact of free gifts on average order value of your online store? Stay tuned to learn how free gifts can transform your store’s performance!
The Psychology Behind Free Gifts
Offering free gifts is one of the most effective marketing tactics because it leverages deep-rooted psychological principles that influence consumer behavior. Here’s a deeper look at why free gifts work so well:
1. Reciprocity (The “Give-and-Take” Effect)
When customers receive something for free, they feel a subconscious obligation to return the favor, often by making a purchase.
A study found that the impact of free gifts on average order value is over 22% when customers are encouraged to spend more to qualify for the bonus item. (according to edrone)
This principle is hardwired into human psychology—we naturally want to repay kindness, even in commercial transactions.
2. Perceived Value (The “Great Deal” Effect)
Free gifts make shoppers feel like they’re getting extra value, even if the actual cost to the business is minimal.
According to edrone, A beauty brand offering a free sample with purchase experienced 28% increase in conversions, as customers perceived higher value.
The Impact of free gifts on average order value reveals that people are more likely to buy when they believe they’re getting a bargain, even if they weren’t initially planning to spend that much.
3. Urgency & Scarcity (The “Fear of Missing Out” Effect)
When giveaways are time-limited (“Free gift today only!”) or quantity-limited (“First 50 customers”), shoppers act faster to avoid losing out.
An e-commerce store using countdown timers for free gifts saw a 35% boost in same-day purchases compared to open-ended offers. (According to edrone)
The Impact of free gifts on average order value shows that scarcity triggers impulsive buying behavior because people hate feeling like they missed an opportunity.
Case Studies: Stores That Increased AOV with Gifts
Here are 4 compelling case studies demonstrating the impact of free gifts on average order value (AOV):
1. Evelyn & Bobbie (Fashion/Apparel) – 22% AOV Lift
Strategy: Implemented “Buy X Get Y” promotions with complementary products (e.g., free bikini with bra purchase)
Tactics:
- Dynamic cart widgets suggesting gift bundles.
- $98 free shipping threshold to encourage larger orders.
- Limited-time rule-based discounts (up to 25% off).
Impact of free gifts on average order value: Generated $2M+ in sales from promotions alone.
2. Secret Sales (Luxury Marketplace) – 14% AOV Increase
Strategy: Partnered with Tyviso for third-party gift-with-purchase offers
Tactics:
- Basket-page widgets featuring free gifts from brands like SimplyCook.
- Post-purchase email redemption system.
- Commission-based model protecting margins.
Impact of free gifts on average order value: 66% higher conversion rate and 11% revenue boost during peak season.
3. Arbor Made (Home Goods) – 10% AOV Growth
Strategy: “Bundle and Save” with sustainable candle sets.
Tactics:
- Tiered gift bundles (Starter to Deluxe options).
- Build-your-own-bundle customization.
- Clear multi-step UX for bundle selection.
Impact of free gifts on average order value: 20% conversion rate increase alongside AOV lift.
4. Licorice.com (Gourmet Food) – 17% AOV Jump
Strategy: On-site personalization with surprise gifts.
Tactics:
- AI-driven gift recommendations.
- Mystery freebies at the checkout threshold.
- Real-time AOV tracking.
Impact of free gifts on average order value: Overnight sales explosion after implementation.
Best Practices for Implementing Gift-Based Strategies
Gift-based promotions can boost sales, increase AOV (Average Order Value), and improve customer satisfaction—but only if executed strategically. Below are proven tactics with real WooCommerce examples to help you maximize the Impact of free gifts on average order value:
1. Minimum Spend strategy
Minimum spend strategy encourages customers to spend more to unlock a free gift.
To set a rule with this strategy, you can use the WooCommerce free gifts plugin and offer a giveaway with purchase as follows:
If customers spend $50+, get one wine for free!
To automate this rule, you need to follow the steps below:
- Install and activate the free gifts for WooCommerce plugin.
- Open the main page and click on the Add Rule button.
- In the rule form, fill in the following fields:
- Method: Choose Subtotal from the list.
- Quantities & Settings:
- Subtotal Amount: 50 (The customers must order more than $50 to be eligible for the free gift)
- Get: 1 (Customers will receive one free gift when their orders meet the conditions)
- Mark Auto Add gift to Cart if you want the plugin to automatically add free gift to the customer’s cart (Optional).
- Product Get: Add Wine to the Include Category/Tag/Taxonomy field to offer gifts from the selected product category to the customers.
By pressing Save Changes button, the rule will be applied to all orders above $50.
You can also activate a pop-up in the cart page to inform customers that they received a gift for their purchases in the Settings > Display page (If you have not enabled Auto add gift to cart), as shown below:
As a result, when the subtotal amount of customer carts is above $50, the plugin automatically adds one product from the wine category to the customer cart.
2. Offer Complementary Products as free gift
One of the best strategies to see the impact of free gifts on average order value is to make customers perceive a higher value with their purchase.
For Example, if a customer buys a camera, you can offer a free lens cleaning kit for free. This “Product Bundles for WooCommerce” is a smart gift pairings that have a physiological effect on customers.
Read More: How to setup WooCommerce product upsell? (with/without plugin)
You can highlight the retail value of the free gift to impress the customers on the settings page as shown below:
3. Limited-Time Offers to increase the impact of free gifts on average order value
Creating FOMO (Fear of Missing Out) can speed up purchases and boost AOV in a short while.
“Only orders today get a free gift!”
To create this rule in the WooCommerce free gift plugin, you need to:
- Choose the Simple method.
- Set the Get field of Quantities and Settings to 1, which means customers will receive one free gift in their cart if conditions are met.
- Add the Wine category to the Include Category field of the Get product section.
- Add the following two conditions:
- Date > Specific Date > Set today in the Calendar.
Apply the rule by pressing Save Settings, and let customers choose one of the products from the wine category as free gift if they order on the specified date.
Free Gift For WooCommerce Plugin
The easy way to increase average order value in your WooCommerce store
Analyze Data to Track the Impact of Free Gifts on Average Order Value (Real-Time Optimization)
The free gifts for WooCommerce plugin provides robust reporting features to help you measure the effectiveness of your gift campaigns.
Along with the Reports dashboard overview provided in the Reports tab, there are several tracking options, including:
- Rules Tracking: Shows performance metrics for each of your gift rules.
- Orders Analysis: Tracks all orders that include a free gift.
- Customers Tracking: Reveals which customer segments are most responsive to gifts.
- Products (Gifts) Performance: Shows which free gifts are most frequently accepted.
By tracking these key metrics, you can make data-driven decisions about your free gift marketing strategies and optimize your gift campaign to have more impact on average order value.
Free Gifts vs. Discount Codes – Which Performs Better?
When deciding between offering free gifts or discount codes, businesses must consider their goals, customer behavior, and profit margins. Both strategies have unique advantages, but their effectiveness depends on how they align with your brand and audience. Below is a detailed comparison to help you choose the right approach.
How the free gifts impact online store performance?
Gifts create a sense of exclusivity and added value. Customers feel they’re getting something extra without directly lowering the product’s price.
Free gifts strategically increase average order value (AOV) by motivating customers to add more items or reach higher cart totals to unlock the promotional offer. This psychological incentive often leads shoppers to spend beyond their initial intent, naturally impacting the average order value and revenue per transaction.
How discount codes impact online store performance
Discounts appeal to price-sensitive shoppers who want immediate savings. They are highly effective for conversion boosts, especially during sales seasons or for first-time buyers. However, overusing discounts can train customers to wait for promotions, reducing long-term profitability.
Key Factors to Consider When Choosing Between the Two
When designing promotional campaigns, marketers often face the dilemma of choosing between free gifts and discount codes. Both strategies can effectively drive sales, but they work through different psychological mechanisms and produce distinct business outcomes.
The following factors can help you select the approach that best aligns with your marketing objectives and brand positioning.
Business Goals: Aligning Promotions with Objectives
The choice between free gifts and discount codes should primarily depend on your company’s strategic priorities.
Free gifts excel at fostering long-term customer relationships and introducing consumers to complementary products. They work particularly well for brands focusing on customer retention and product sampling.
Conversely, discount codes serve as powerful tools for immediate revenue generation, making them ideal for seasonal promotions, inventory reduction, or competitive market penetration.
The result of studies revealed that the impact of free gifts on average order value is greater than discount codes.
Customer Perception: Managing Brand Image Through Promotions
How customers perceive your brand during and after promotions significantly impacts long-term success.
Free gifts typically enhance brand prestige by creating an aura of generosity and exclusivity, especially when the gift appears valuable or carefully curated. Luxury brands frequently use this approach to maintain their premium positioning while still offering value.
Discount codes, while effective at driving conversions, can potentially dilute brand equity if overused, as they train customers to associate your brand with price reductions rather than inherent value.
This perception shift can be particularly damaging for brands competing on quality rather than price.
Profit Margins: Calculating the Financial Impact
The financial implications of each promotional strategy require careful consideration.
Free gifts involve not just the cost of the additional product, but also packaging, storage, and logistical expenses that can significantly impact profitability. These costs must be weighed against the potential impact of free gifts on the average order value and customer lifetime value.
Discount codes directly reduce per-unit revenue but may compensate through increased sales volume and customer acquisition.
The break-even point differs for each approach, requiring businesses to model scenarios based on their specific cost structures and margin requirements before committing to a strategy.
Final Thoughts: Is It Worth It?
Free gifts can be a powerful strategy for boosting your Average Order Value (AOV), but their effectiveness depends on careful implementation. When executed well, the impact of free gifts on average order value is undeniable and can encourage customers to spend more to qualify for the bonus item.
The Free Gift For WooCommerce plugin can help boost your sales by automatically offering free products when customers reach a certain purchase amount, increasing average order value (AOV) and customer satisfaction. It’s an effective way to encourage larger orders while rewarding shoppers with complimentary items.
FAQs about the Impact of Free Gifts on Average Order Value
1. How do free gifts increase Average Order Value (AOV)?
Free gifts create a psychological incentive for customers to spend more to qualify for the bonus item. For example, if you offer a free product with a $50+ purchase, shoppers may add extra items to reach that threshold. Studies show this tactic can boost AOV by 15-30% by encouraging larger cart sizes without discounting prices.
2. What’s better for increasing sales: free gifts or discount codes?
While discounts drive immediate conversions, free gifts often outperform them in long-term value. Discounts can erode profit margins and train customers to wait for sales, whereas free gifts enhance perceived value and can introduce customers to new products. Data shows free gifts have a 22%+ higher impact on AOV compared to flat discounts.
3. Which Free Gift Strategy is Best for Increasing AOV?
The most effective strategies include minimum spend (e.g., “Spend $50+ and get a free gift”) and complementary products as gifts (e.g., “Buy 1 coffee package, get a free mug”). These encourage customers to add more items to their cart.
With the free gifts for WooCommerce plugin, you can easily set up all necessary gift rules based on order value, products, or time limits to boost AOV.
