BOGO strategies: how to implement them in your eCommerce

What is a BOGO strategy?

BOGO is an abbreviation for buy one, get one free. Therefore, this is a marketing strategy that boosts eCommerce sales by offering a free product along with the one bought by the user (or at least of a similar value). 

BOGO strategies serve as a way to hook new users and as a channel to increase the value of the average ticket in your eCommerce. To do so, there are 3 different ways you can carry out a promoted product action:

1. Give away a product that’s exactly the same as the one purchased by the user (the classic 2x1).
2. Offer a product that has a similar value to the one purchased, chosen by the user or from a specific collection, usually paying for the item with the higher value.
3. Include a product that’s related to the main purchase, of a lesser value, chosen by the user from a specific collection.

This type of pricing strategy can be used at different stages of your relationship with the user, allowing eCommerce businesses to use them for everything from introductory offers to recovering users so that they complete their abandoned cart purchases using email marketing.

What are the benefits of using BOGO strategies in your eCommerce?

There are three main ways that your eCommerce can benefit from using a BOGO strategy:

• It attracts new users to your website as well as repeat purchases.
• It helps you release the accumulated stock in your product warehouse.
• It increases the value of your average ticket, reducing the shipping costs for the same user’s next purchase.

How to create a BOGO strategy for eCommerce: step by step

To implement a BOGO strategy, you can use the ‘gift’ product in different ways. No matter what, you must base this on considering the best pricing strategy that allows you to apply the most appropriate combination of products at the most profitable price for your business. 

The first thing you need to do is choose what key products will be in your BOGO strategy. Which items from your catalogue will come into play?

Next, you need to choose the hook. 2x1? Same value? Or maybe using the strategy of offering a gift for arriving at a certain ticket size?

Finally, you’ll have to define the market price of the products that are involved in this action. As a symbiosis with point 2, you’ll need to create combinations based on the discounts that you can offer and the expected ROI. For this, you can use a pricing strategy simulator and carry out real tests based on scientifically obtained data that will allow you to know which is the best option for your business.

Once you’ve completed the calculation, you only have to implement your strategy and let your potential buyers know about it. Now it’s marketing’s turn!