PPB November 2017

MARKET SHARE A Beautiful Friendship Even as other industries abandoned free premiums, health and beauty brands carried on the gift-with-purchase tradition. Best Soap manufacturer B.T. Babbitt struck customer gold when, in 1881, he offered lithograph posters free to consumers who purchased his soap. Adding value to a purchase that otherwise seemed an inexpensive necessity boosted its perceived value among customers—something companies in other industries took notice of and soon followed suit. Beer manufacturers gave away bottle openers and coasters; cereal makers included prizes in their boxes; and banks gave toasters to new customers. In the early 20th century, cosmetics were considered by many to be a luxury, and cosmetics companies shied away from the free gift practice, believing it would downgrade their products to the everyday status of other personal-care items. But it was Estee Lauder who saw that gifts with purchase could elevate the value of a brand and its products—specifically, her makeup, which she was eager to sell to postwar consumers. Economic highs and lows have turned non-beauty industries off the idea of offering free premiums, but marketing experts believe that as competition heats up, premiums will have new appeal. “Premiums are attractive because they change the value equation without changing the price of the product,” marketing professor Laurence Minsky told shopping and beauty news website Racked. “I think if the economy really tanks or gets competitive again, the bigger premiums will come back. It’s smarter to add value than merely discount [an item].” Beauty brands have built steadily upon Lauder’s strategy since the first powder compacts were given away in the 1960s. Now loyalty programs reward frequent buyers and beckon prospective customers online and in stores. The idea that a pricey, unnecessary item could be yours for free (even if you had to spend $50 to get it), is keeping the gift-with-purchase game alive. WATER COOLER FlipThe Switch Learn to turn off work mode when your office is in your home. Work-from-home warriors, congratulations— you’ve now got science in your corner when it comes to convincing the boss that telecommuters are just as productive as workers who show up to the office. A study from the University of Cardiff in Wales found that more than a third of the home- based workers surveyed reported putting in more hours than their office-based colleagues. Whether telecommuters work more to keep peers from believing they’re slacking off, or because they aren’t distracted by the watercooler culture of an office, was not determined by the study of 15,000 British workers. A separate study published in April by UK-based Chartered Institute of Personnel and Development revealed that home-based employees have a more difficult time transitioning from work than their office counterparts; almost one third of survey respondents reported feeling they could not switch off during their personal time. To create a more distinct separation between the work day and the rest of the day, follow these guidelines, shared by time management expert Rashelle Isip with news site Moneyish: 1 Switch up work locations once in a while, such as moving to a café or a coworking space in the afternoon. 2 Don’t check personal email during your established “office hours;” conversely, turn off notifications from your work email account once you’ve clocked out for the day. 3 Create a routine similar to what you’d have in the office—make a cup of coffee, review your daily agenda, and eat lunch or take periodic breaks away from your home office. 4 Close out the work day by reviewing the next day’s agenda, cleaning up your workspace and sending out emails that don’t require an immediate response. 66 | NOVEMBER 2017 | THINK