BOGO: An Extensive Guide to the power of BOGO in Retail

Apr 15th, 2024
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In the world of retail and e-commerce, businesses are continually innovating to capture the attention of consumers and drive sales. Amidst a plethora of sales promotion tactics, one strategy that has consistently proven its efficacy is BOGO – Buy One, Get One. This article delves into the essence of BOGO, its superiority over other promotional methods, real-world examples of successful BOGO campaigns, the manifold benefits it offers businesses, best practices for implementation, and a curated list of tools to facilitate the creation of BOGO offers.

I. What does BOGO mean?

What does BOGO mean?

BOGO, a truncation for Buy One, Get One, constitutes a promotional approach wherein customers receive an additional item at no extra charge when they purchase a specified item at its regular price. The allure of this strategy lies in its versatility, manifesting as Buy One, Get One Free (BOGOF), Buy One, Get One 50% Off (BOGO50), or even Buy One, Get Two Free (BOG2F). By offering added value or savings, BOGO capitalizes on consumers’ psychological inclination towards perceived benefits, thereby stimulating purchases.

II. Why are BOGO promotions worth it for retail business?

BOGO promotions offer myriad benefits for businesses:

1. Increased Sales:

At its core, the primary goal of any promotion is to boost sales. BOGO promotions serve as a potent catalyst for driving traffic and motivating sales. This increase in sales volume can lead to higher revenue generation. Plus, making BOGO promotions an attractive option for retailers looking to meet their sales targets.

2. Increased Average Order Value (AOV):

BOGO incentivizes customers to buy more than initially intended, resulting in a higher AOV. The prospect of obtaining an additional item at no extra cost prompts customers to add more items to their cart, thereby augmenting sales revenue.

3. Customer Acquisition and Retention:

By offering enticing Buy One Get One deals, businesses can attract new customers while nurturing existing ones. BOGO promotions are effective in fostering customer loyalty by offering perceived value and incentives for repeat purchases. Customers perceive these promotions as advantageous, which encourages them to return to the store or website for future purchases. Exciting sentiments with BOGO deals can lead to word-of-mouth marketing, attracting new customers and increasing brand awareness. By evoking positive emotions and rewarding loyalty, Buy One Get One promotions strengthen the emotional connection between customers and the brand, ultimately fostering long-term loyalty and advocacy.

4. Efficient Inventory Management

BOGO promotions serve as a strategic tool for managing inventory, particularly for products with limited shelf life or seasonal relevance. By bundling slow-moving items with the hot ones, or simply markdown out seasoned items with Buy One Get One free, retailers can move inventory more efficiently while maintaining profit margins. 

5. Strategic Marketing Opportunities:

BOGO promotions provide businesses with a platform to showcase their products and reach a broader audience. Furthermore, these promotions provide opportunities for businesses to collect valuable data on customer behavior. Furthermore, this promotion strategy allows business to implement tailored marketing efforts. By leveraging various marketing channels such as social media, and in-store signage, businesses can amplify the visibility of their BOGO offers and drive customer engagement.

6. Competitive Edge

In a competitive marketplace, BOGO promotions enable businesses to differentiate themselves from rivals and capture consumer attention. The sense of urgency and excitement generated by Buy One Get One offers contributes to increased foot traffic and online engagement.

III. Examples of BOGO promotions:

Examples of BOGO

  • Clothing Retailer:

    “All shirts today are BOGO Free!” 

This promotion encourages customers to mix and match tops, thereby driving sales volume and enhancing customer satisfaction.


  • Grocery Store:

    “Buy One Meat, Get One Veg Free!” 

This offer appeals to budget-conscious consumers, stimulates purchases and clears the stocks of fresh items quickly. After Covid pandemic, consumers have increased health-awareness. Therefore, it is reasonable to offer them a “cheap and healthy” deal while avoiding wasting fresh-stocks.

  • Beauty Brand:

    “Buy One, Get One 50% off on Lipsticks!” 

This promotion entices customers to experiment with new shades and stock up on their favorite products. So that results in increased brand loyalty and customer retention. This BOGO is perfectly suitable for the beauty market because it involves a high customization level. In detail, rewarding consumers with half price for the second product would increase the probability of buying a second product. In detail, this offer allows customers to select a needed item (another shade) instead of a fixed reward.

  • Personal Care:

    “Buy Shampoo get a Free Conditioner!”

As personal care’s consumers tend to buy conditioner together with shampoo, applying this BOGO promotion would encourage consumers to buy your products while giving new customers that have never used your brand’s conditioner product before, have a ‘free trial’. Hence, it is obvious that this Buy One Get One promotion is also an advertising tool and could bring sales for other product categories.

IV. What are the best practices for BOGO discounts?

Implementing Buy One Get One discounts necessitates meticulous planning and execution. Here are some best practices to optimize the effectiveness of BOGO promotions:

1. Comprehensive Audience Analysis

Tailor Buy One Get One promotions to align with the preferences and purchasing behavior of your target demographic.

2. Transparent Terms and Conditions

Clearly communicate the terms of the offer, including eligible items, restrictions, and any expiry dates, to mitigate customer confusion and ensure transparency.

3. Emphasize Value Proposition

Highlight the savings or added value that customers stand to gain from the Buy One Get One promotion, thereby accentuating its appeal and driving conversion rates.

4. Create a Sense of Urgency

Introduce time-sensitive elements such as limited-time offers or countdown timers to instill a sense of urgency and prompt immediate action from customers.

5. Cross-Sell and Up-Sell

Pair complementary products or offer upgrades to maximize the value proposition of the BOGO promotion and encourage higher spending.

6. Monitor and Analyze Performance

Implement robust tracking mechanisms to monitor the performance of the promotions, analyze key metrics, and glean actionable insights for refining future campaigns.

V. What are the best tools to create BOGO discounts?

Best tools to create BOGO

Several tools and platforms are available to facilitate the seamless creation and management of BOGO discounts:

1. E-commerce Platforms:

Established e-commerce platforms such as Shopify, WooCommerce, and Magento offer built-in features or plugins that streamline the setup of Buy One Get One promotions.

2. Coupon Apps and Loyalty Platform:

Dedicated digital tools such as ezLoyalty, Discount Ninja, and Bold Discounts empower businesses to craft customized BOGO offers, track their performance, and optimize their promotional strategies. Especially, ezLoyalty platform is more reliable and cost-saving for business that wants to enhance long-term growth because the platform provides a wide range of marketing features from creating loyalty programs, managing customer base, setting promotion activities automatedly, creating discount codes, analyzing customer behaviors, and more.

3. Email Marketing Platforms

 Robust email marketing platforms like Mailchimp, Constant Contact, and Klaviyo enable businesses to deploy targeted email campaigns promoting Buy One Get One deals to their subscriber base, thereby maximizing reach and engagement.

4. Social Media Advertising Tools

 Leading social media advertising platforms such as Facebook Ads and Instagram Ads provide sophisticated targeting options to create and distribute ads promoting BOGO promotions to specific audience segments. Therefore, enhancing the brand’s visibility and driving traffic to your business.

VI. Conclusion:

BOGO promotions represent a formidable tool in the marketer’s arsenal. They are capable of driving customer engagement, boosting sales, and enhancing brand visibility. By comprehending the underlying psychology of BOGO offers, and sticking with the guidelines, businesses can harness the full potential of BOGO promotions. If you want to implement BOGO technique and explore more dominant marketing tactics in the retail and eCommerce industry, contact us to get a consultation!

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