BOGO Promotions: Why Buy One Get One Deals Drive Sales &  Loyalty

Buy One Get One Free (BOGO) is one of the most powerful sales promotions in retail and e-commerce. Whether you sell fashion, cosmetics, food, or subscriptions – BOGO deals increase average order value, attract new customers, and drive loyalty.

According to research from Convince&Convert, over 93% of customers use at least one discount code or coupon each year. These discount promotions aren’t just about savings – they’re what motivate customers to complete a purchase.

If you're looking for a high-converting marketing strategy to boost revenue, clear inventory, and reward loyal customers, BOGO promotions are your go-to.

What does BOGO promotion mean?

BOGO simply means "buy one, get one." It is a sales promotion during which shoppers are offered a free or a discounted product (for instance, they only pay half the sum) when another product of the same or higher value is purchased. BOGO can certainly serve as an example of a bundle discount.

Why are BOGO promotions effective?

Buy-One-Get-One (BOGO) promotions are incredibly popular with consumers, and it’s not hard to understand why. A study published in the Journal of Business Research found that shoppers often prefer BOGO deals over equivalent price discounts. 

BOGOF offers tend to grab more attention and are chosen more frequently, particularly when the savings are substantial.

The psychology of "free" and the Zero Price Effect

Why do BOGO promotions convert so well? It all comes down to the psychology of “free.”

Behavioral economist Dan Ariely, in his book Predictably Irrational, describes a phenomenon called the “zero price effect” – the idea that people get irrationally excited when something is free, even if the actual savings are small.

In one of his well-known studies, participants were offered two chocolates:

• A Hershey’s Kiss for 1 cent.
• A premium Lindt Truffle for 15 cents.

Most people chose the truffle because it offered better value. But when the price of both items dropped by a penny – making the Hershey’s Kiss free and the truffle 14 cents—90% of participants chose the free item, even though the price difference didn’t change.

This reveals a powerful truth for marketers: free products feel more valuable than discounted ones. That’s why BOGO offers resonate so strongly – customers aren’t just getting a deal, they’re getting something extra, without added cost.

Pair this with a limited-time promotion, and you create a compelling reason to act now. A well-timed BOGO discount taps into both logic (saving money) and emotion (getting something free), making it one of the most effective tools in your ecommerce marketing strategy.

Learn more: The Fascinating Psychology Behind Discounts and Promotions

Real-world examples of BOGO deals & promotions

1. Burger King – free product with an eligible purchase

Burger King rewards first-time Click & Collect customers with a free Whopper when the order total exceeds £3. The offer applies automatically at checkout once the Whopper is added to the cart.

2. Publix – automated BOGO deals

Publix features twice-weekly promotions where select grocery items are eligible for “buy one, get one free.” During holidays, deals often include pantry staples like shelled black eyed peas, along with bundled pricing such as “2 for $X” offers.

3. Famous Footwear – buy one, get one 50% off

Footwear buyers can regularly take advantage of a "buy one, get one half off" promotion. The discount applies to the second pair of equal or lesser value and is often available both in-store and online.

4. Subway – free sandwich with a specific order

As part of a World Sandwich Day campaign, Subway gave customers a free 6-inch sandwich with the purchase of a sandwich and drink combo. The deal increased foot traffic and app usage through limited-time participation.

5. Linen Chest – Buy one, get one 50% off (including on-sale items)

Shoppers at Linen Chest could get a second item for 50% off, including items already on sale. No coupon codes were needed – discounts were applied automatically at checkout for qualifying orders.

6. Coca-Cola Embonor – versatile BOGO deals

Coca-Cola Embonor offered 6 for the price of 5 on drink packs, and during the holidays, customers could buy any beverage in a returnable container and receive a set of Christmas ornaments at half price. 

A great example of using giftable items to elevate bundled sales.

7. Domino’s Pizza – BOGO Tuesdays

Every Tuesday, Domino’s offers a second pizza free with the purchase of one at full price. The deal applies to both delivery and carryout, making it a cornerstone promotion for attracting loyal weekly customers.

8. Ulta Beauty – Buy Two, Get One Free on select brands

Ulta drives repeat purchases with cosmetics bundles, where customers can choose three products but only pay for two. These deals are rotated regularly across beauty categories and are available online and in store.

9. Starbucks – app-based drink deals for loyalty members

Starbucks frequently runs Happy Hour events where loyalty members can enjoy a second handcrafted beverage for free. These exclusive mobile offers create urgency and encourage app adoption.

Why are BOGO promotions worth it?

1. Streamlined inventory management

BOGO promotions are a highly effective way to clear out excess stock, seasonal inventory, or products approaching their sell by date. By offering a free or discounted item, businesses can quickly move inventory that might otherwise remain unsold.

Additionally, BOGO promotions encourage up-selling and cross-selling by enticing customers to add complementary products to their carts. For e-commerce stores, this can result in higher order values and better inventory turnover rates.

2. Convenient and flexible implementation

BOGO promotions can be implemented as automatic discounts at the cart level, where the system instantly applies the deal (e.g., a free or half-priced second item) when qualifying products are added. Alternatively, they can be triggered through promo codes entered at checkout. This flexibility allows businesses to tailor their marketing campaigns to match different customer behaviors and preferences.

3. Preserves brand perception and product value

Unlike traditional discounts, BOGO promotions do not diminish the perceived value of your products. For instance, offering a 50% discount on a single item might make customers associate your brand with lower prices or diminished quality.

With BOGO, the primary product retains its full price, while the discounted or free item feels like an added benefit. This approach helps maintain your brand’s value proposition and ensures that customers still perceive your products as premium and worth their full cost.

4. Enhanced profit margins through volume sales

While it might seem counterintuitive, BOGO promotions can actually help protect or even improve profit margins. The cost of the free or discounted item is often offset by the increased sales volume, especially when the promoted products have strong profit margins to begin with. Additionally, customers are more likely to purchase other full-priced items while taking advantage of the deal, further driving profitability.

5. Optimized logistics and shipping

BOGO naturally encourages larger orders by promoting product bundles, which simplifies order fulfillment. Bundling items together makes packing and shipping more efficient, reducing handling time and lowering shipping costs. For businesses that manage high order volumes, this logistical optimization can lead to significant savings and faster delivery times, enhancing the overall customer experience.

Best practices for running BOGO promotions

1. Set clear conditions

Clearly communicate the details of your next BOGO promotion, such as eligible items, exclusions, and any stock or time limits. This transparency not only makes the deal more attractive but also enhances customer trust and loyalty. To protect your margins, consider adding minimum order value or validation rules for cart content.

2. Tailor BOGO deals to your audience

Create BOGO offers that resonate with your target customers. For example, offer complementary products that align with customer preferences. A guitar store offering a free set of guitar picks with a guitar purchase is far more appealing than unrelated items like drumsticks. Tailored BOGO deals help attract new customers while fostering satisfaction and loyalty.

3. Evaluate profitability

While BOGO promotions are a popular promotion strategy to boost sales, ensure they are financially viable. Analyze the potential impact on your bottom line and balance the discount with your business goals to make the most of the campaign.

4. Create urgency

Time-limited offers drive action. Set clear deadlines for the promotion or limit the number of discounted items available. Linking your BOGO deals to a seasonal event or holiday is a great way to encourage quick decision-making and enhance loyalty through timely, relevant deals.

5. Experiment with different BOGO formats

Not all BOGO promotions need to be "buy one, get one free." Experiment with variations like "buy one, get one 50% off" or "buy two, get one free." Testing these formats can help you determine which type of deal works best for boosting sales and attracting new customers.

6. Promote the offer effectively

Even the most attractive BOGO deal won’t perform well if customers don’t know about it. Use multiple channels like social media, email marketing, and in-store signage to promote your offer. For e-commerce, notify customers about the deal throughout their shopping journey – on product pages, cart pages, and at checkout.

How to create a BOGO promotion in Voucherify? 

If you're looking for an easy way to set up Buy One Get One Free (BOGO) promotions or bundle discounts that drive conversions, Voucherify is your go-to solution.

Popular BOGO campaign structures in Voucherify

‍Pro tip: To protect your budget and ensure fair redemptions, Voucherify lets you apply granular validation rules to every buy-one-get-one campaign. You can cap redemptions per day, per customer, or by total order value, helping you stay in control of your promo performance and marketing spend.

Example: Buy 5, Get the Cheapest One for Free

1. Create a product bundle with a minimum quantity (e.g., 5 items from Watchflix Collection).
2. Include all the products that should be bundled together and specify the required quantity for each item.

3. Select the Product Discount type and set the discounted item's price to $0.
4. Assign the discounted product collection and cap the discount to 1 per order item and 1 across all matched order lines.

5. Finalize and save your setup. The promotion is now ready to be applied during checkout.
6. When a customer checks out with eligible items, Voucherify validates the cart. If all bundle rules are met, the discount is automatically applied.

Learn more: How to create a BOGO deal with Voucherify?

Build customer loyalty with BOGO promotions

Buy One Get One Free promotions aren’t just a sales driver – they’re a powerful tool for building long-term customer loyalty. By offering extra value at no extra cost, BOGO campaigns tap into buyer psychology and keep customers coming back for more.

• BOGO deals are customer favorites. Over 93% of U.S. shoppers have redeemed a BOGO offer at least once, making it one of the most popular discount types in retail and e-commerce. 
• BOGO fuels referrals and word-of-mouth. Research shows that 79% of shoppers who receive a free gift or deal are more likely to share the experience with friends, helping brands increase organic reach and trust.

When used thoughtfully, BOGO deals can do more than just bring in orders. They help customers feel noticed and appreciated – especially when offers are based on their past shopping habits or tied to rewards for loyal buyers.

With Voucherify, you can take it a step further. Combine BOGO deals with loyalty rewards, member perks, or points-based systems to build stronger relationships and give people a reason to stick with your brand. And the best part? You can manage all of it without needing technical help.

{{CTA}}

Build your next BOGO promotion with Voucherify

Let's chat

{{ENDCTA}}