By: Edan Joy Gelt, CMD MBA

INCREASE MALL SALES WITH GIFT WITH PURCHASE PARTNERSHIPS

A HOW TO GUIDE

In 2001, Edan Gelt, CMD, MBA created an innovative way to increase mall sales. As Marketing Director at Shopco’s Chicago Ridge Mall, she implemented a trade partnership gift-with-purchase program that increased mall-wide sales

and became a staple in the shopping center industry.

The model she created in 2001, has since been used in shopping centers across the country and has received

acknowledgement through the ICSC with multiple MAXI AWARDS for concept creation and implementation.

INTRODUCTION

WHAT IS PARTNERSHIP MARKETING?

Partnership Marketing is the process of pairing complimentary businesses to maximize the marketing budget, provide added value to potential

customers/clients & increase NOI.

PARTNERSHIP SAMPLES

1 Mall Retailer

2 Mall Restaurant

3 Mall Entertainment Venue

IDENTIFY YOUR GOALS

• Increase Gift Card Sales

• Increase Average Expenditure

• Increase Category/Service Sales

CREATE A VALUE PROPOSITIONDetermine what value you can offer. At Chicago Ridge Mall in 2001, I was looking to cover a 60’ barricade. Not having the budget to do much with it, I repositioned it as an asset. I was thus offering a 60’ barricade that would gain exposure

to 12 million each year.

I also spent a decent amount on seasonal advertising (direct mail, mall signage, e-news, table tents, radio buys, etc) and

could offer inclusion in already budgeted for advertising.

ALIGNING GOALS/WITH VALUE PROPOSITION:

My average shopper expenditure at the time was $80 but I wanted to increase it to $100 (the ICSC average). Although gift with purchase

programs worked, the cost to acquire a gift the shoppers would value would be too costly – at least $10. $10 x 1,000 is a $10k spend!

If I want my shoppers to spend $20 more, $100 total, the value of the gift must be AT LEAST 10% of the total expenditure – in this sample,

$10.

For example, you won’t spend $20 more to get a $1 item but you might for a $10 item.

CALCULATE YOUR TRADE VALUEI am willing to offer a 60’ wall and inclusion on a mailer going to 50k homes, 20 signs, 200 table

tents and the value is $45k.

I am looking for a minimum of 1,000 items valued at $10 ore more.

TYING IT ALL TOGETHERBased on the average spend – I needed to secure a

partner that would offer a perceived value of $10 or more. Spend $100 and get a FREE X.

Reach out to your retailers, restaurants and local entertainment destinations to see who would be willing to trade $10K in merchandise, food or tickets to have use (in my example) of a 60’ mural, inclusion in 50k mailers, 200

table tents, 20 mall signs etc.

IDENTIFY POTENTIAL PARTNERSBased on the value proposition, determine who would

make strong partners. Look at your target market and decide what type of partner you are looking for.

Families with children? Gear young and choose kid’s based entertainment venues.

Target is upper class, no children? Look for higher end options – theaters, food, etc.

COMPILE A LIST OF COMPLIMENTARY PARTNERS

First identify any restaurants or entertainment attractions within your shopping center geared towards your target. If there isn’t interest, identify attractions or restaurants outside your center. Create a list that includes the name of the venue and find out who is the decision maker (get a name and email).

CREATE A WIN-WIN PROPOSAL• Clearly spell out what you are offering – a line item

of the assets you are offering and its value

• NOTE HOW IT WILL BENEFIT YOUR PARTNER – ie…exposure to 13million, brand awareness, ancillary purchases etc.

• Then include what you are asking for: 1,000 appetizers, 1,000 tickets to the zoo, 1,000 $10 gift cards to x retailers.

LISTEN & PERSISTENCE If you are unable to get a partner, re-look at your

proposal. Are you offering something of value to your partner? Does your target market line-up with the partner you are approaching? Are you asking too

much? Are you talking to the wrong person?

If you get continual “no’s”, ask questions. Find out what the problem is and adjust.

NEED HELP?Edan Gelt, CMD, MBA creates valuable partnerships. For marketing strategy or partnership consulting, visit

https://www.linkedin.com/in/edan-joy-gelt/

Areas of expertise include shopping centers, retailers, entertainment attractions, Med-Spas, small business,

mixed-use and residential real-estate.