# Buy one get one free (BOGO)

## **What does buy one get one free (BOGO) mean?**

**Buy one get one free (BOGO) is a promotion strategy used by retailers to encourage customers to purchase a particular product by offering a second item of the same kind at no additional cost.**

In essence, when you buy one item, you receive another identical item for free or with a discount percentage. Brands such as Subway, Starbucks, Pizza Hut, and McDonald’s often offer a variety of BOGO deals to their customers.

## **How does the buy one get one free (BOGO) offer work?**

When a retailer presents a BOGO deal, customers typically purchase one item at its regular price and receive a second identical item for free. The discount is automatically applied at the checkout, with customers only paying for the higher-priced item, if applicable.

## **Innovative approaches to BOGO deals**

While conventional BOGO offers may erode profit margins or cheapen brand image, there are creative methods to implement BOGO deals while safeguarding profitability and brand integrity:

### Omnichannel BOGO

Incorporate BOGO deals into your omnichannel strategy. Customers can purchase one item online and receive designated items for free during their next in-store visit (or vice versa). This approach enhances customer value and drives traffic to both physical and digital storefronts.

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### Gated and personalized BOGO

Gated offers, accessible only to specific groups, are highly favored by customers as they foster a sense of exclusivity. By leveraging insights into your target audience, you can tailor BOGO deals to items of significance to them. Additionally, offering these deals exclusively to a particular tier of your loyalty program demonstrates appreciation to members in that tier and motivates others to move to higher tiers.

### Bundling solutions

To mitigate the impact on profit margins, implement BOGO deals within larger product bundles. Employing a flexible [**Promotion Engine**](https://www.talon.one/promotion-engine) allows you to establish rules and avoid generic, steep discounts.

**Check out our report, "** [**A guide to promotion marketing**](https://www.talon.one/download/a-guide-to-promotion-marketing) **" to learn a wide range of new tactics and techniques to optimize your promotion strategies.**

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HBR report: Getting strategic about incentives\
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