The old pop song tells that “The best things in life are free”. While this remains a contentious debate for another day, there’s no doubt that time-served ‘freebie promotions’ still have plenty of pulling power.
In a year in which many of the most considerable economies on the planet appear to be heading for a recession, and as inflation continues to rise in line with the cost of living, the desire to save money has perhaps not been felt as forcefully as this in quite some time.
Businesses would do very well to be mindful of the fact. And it would be no surprise to see a continuation — or an increased proliferation — of freebie promotions, “try before you buy” offers, and other such deals to try and entice new customers to their products and services.
This is a technique is anyway as old as time. Freebie promotions are the perfect hook to attract customers to give a business a try. This is with the presumption being that they are suitably impressed and are subsequently happy to pay full price for the item in question.
Thinking Outside the Box
All businesses rely on a steady stream of revenue in order to remain viable in the long term.
As such, giving products or services away can feel incredibly counterintuitive. However, firms that truly believe in the quality of what they offer should consider the big picture benefits of the humble freebie promotion.
Freebie promotions show that you have full confidence in what you are doing. Additionally, by using such an offer as bait, you may just hook in a new customer base who will drive plenty of repeat business — and even refer friends your way.
We live in a cynical world, but you should never underestimate the goodwill attached to freebie offers and other deals where no money exchanges hands initially. These help to build brand loyalty and increase visibility. This is ultimately is the goal of any promotional or marketing campaign.
Most business leaders are familiar with the term ‘loss leader’, and that’s essentially what these kinds of offers are. You could be giving products away for free, or not charging for a service for a specific timeframe. You take a financial hit for doing so, but if it enables you to secure new business or bring on board fresh clients, eventually that loss wipes out. In turn, a profitable income stream begins.
If nothing else, money-off campaigns and giveaways can help you to boost your lead generation. For many businesses, this is absolutely vital to their long-term survival.
Freebie Promotions: Following in the Footsteps of Giants
You might think that freebie promotions are limited to new startups and SMEs looking to increase visibility in their chosen sector.
However, some of the biggest companies in the world deploy this kind of strategy too. You only need to take a look at Amazon and their willingness to give away free trials of their Prime service — the fruits of which include access to expedited shipping, exclusive shopping deals, and limited membership of their box set and movie streaming service.
Does Amazon really need to increase its customer base? You might suggest not, but this loss-leading approach ensures they have a guaranteed annual revenue from paid subscribers. As of April 2021, more than 200 million people had a paid-for Prime account.
Netflix is another major company that offers 30-day free trials to users. Like Amazon, they are intent on adding extra numbers to their already sizable customer base by ‘giving away’ access to their library of content with no money changing hands.
The sports betting industry is no stranger to the use of freebie promotions to drive up traffic. These include individual firms offering deposit bonuses, risk-free bets, and boosted odds to attract new customers. DraftKings, for example, became a key figure in sports betting in Colorado thanks to the welcome package and ongoing benefits they offer — as much as $1,000 in free bet funds are available to their new customers.
Freebies and incentivized deals are particularly important in sectors where local competition is rife. Take any city, for example, and you are likely to find at least a handful of gyms that you can join. Some are “pay as you go” but many are via a monthly subscription, and these brands have to find a way to differentiate themselves from their rivals.
It’s why some gyms will waive joining fees altogether, offer 12 months’ membership for the price of 11, throw in free access to a swimming pool or spa facilities, and any other inducement they can think up to win the battle for your hard-earned money.
The business landscape may have changed in recent years, but the techniques that companies use to attract new customers have been around for decades… and shows no sign of becoming outdated.
