What is a key benefit of using Free Gifts in Sales Promotion?

Using free gifts in sales promotion primarily creates customer loyalty. When customers receive a free gift with their purchase, it enhances their overall buying experience and adds perceived value. This approach can make customers feel appreciated and valued, which fosters a stronger emotional connection to the brand. Because customers feel they are receiving extra value, they are more likely to return for future purchases, thereby building loyalty over time.

Additionally, this strategy can encourage word-of-mouth referrals, as satisfied customers are likely to share their positive experiences with friends and family. Establishing a loyal customer base is crucial for businesses, as repeat customers tend to spend more and can significantly contribute to long-term success.

While enhancing brand visibility, providing product knowledge, and increasing employee satisfaction are important aspects of a business strategy, they do not directly contribute to the immediate and emotional response typically elicited by receiving free gifts, which is fundamentally about enhancing customer loyalty.