A closer look at just why we love freebies so much, and how your business can take advantage of this.
“Free” is a powerful asset that can open many doors for your business, and can increase your customer base existentially. It’s no news to anyone that we are more likely to do something if there’s a reward at the end. Much like Pavlov’s dogs we train our minds to expect gratification for our actions, and this counts for even the most selfless of acts.
For businesses, the power of free must be acknowledged. While it may seem like bad business sense to give away something without a monetary return, the value of customer sentiment and the elusive word-of-mouth recommendation could be infinitely more valuable to your company than a one-time customer payment of $10.
Broadly speaking, your customers are aware of the cost of free. They’re willing to make a sacrifice to receive their little ‘something for nothing’. Common freebies include free shipping once a shopping cart reaches a certain amount, a move that encourages shoppers to spend more to get their products delivered without extra charge. Although this way customers part with more of their cash, they’re likely to feel like they got something for free, as the cost of delivery is spent instead on something more tangible.
So how can your business harness the ‘power of free’?
Today’s online customers inundated with options for the ‘best’ deal; many retailers take advantage of the power of free by offering a reward of some kind. For example, when we buy three-for-two products we know we’re buying more than we originally intended, but it seems a valuable investment as the products will last longer. When devising your deal strategy be sure to consider this: the customer needs to view themselves as the ‘winner’ in the relationship. The happier they are with their perceived value of the transaction, the more likely they are to make a repeat purchase.
Sporadic giveaways can also be great for companies who are looking to boost their email capture efforts or simply spread the word about their brand. These are simple to do, and all you need to get going is your social media accounts or your website and a killer prize. Encourage entrants to ‘like’ or ‘follow’ your brand page and share an image of the prize (complete with your branding); you’ll see a boost in your connections on social media and one follower will be over the moon to have received something just for a simple ‘like’ and ‘share’.
Similarly, you can ask your website visitors to enter their details into a capture form for the chance to win a freebie. Through this method you will have the added avenue of contact with your website visitors; you can remind them of your brand’s existence with ongoing updates about what’s going on with your business and other freebie opportunities. Be careful with customer emails, though, as today’s webizens are more than happy to hit the ‘unsubscribe’ or ‘mark as spam’ buttons if you overdo it!
It’s worth remembering that those who receive something for nothing often feel like they have to do something nice in return: those customers who receive your freebies are more likely to give your business a positive review, either by word of mouth or online. This feedback is invaluable as it can lead to more organic traffic flowing to your social media platforms or website.
If you’re planning a giveaway, make sure your website can take the strain of the added traffic. Check out our dedicated server range and make sure your website is powered by a robust back end.