So maybe these aren’t accurate statistics but it’s a fairly good assumption to say that every customer loves freebies. The definition of a “freebie” is something given or received without charge and we’re telling you that your business should give more of them away. These types of giveaways are important in a business’ marketing and sales strategy, but it needs to be executed effectively and with the right objective.
You might be surprised as to the insights behind giving away free goods. Logically the expectation is that customers will walk in, take their free stuff and run, but in fact the opposite occurs. Take 7-Eleven’s Free Slurpee Day for example; Slurpee sales were boosted by 38% when they offered free small Slurpees to every customer for one day of the year. Surprisingly, attendees of the Free Slurpee Day were sampling the free size and then upgrading to a larger size. Offering a freebie simulates a “try before you buy” selling technique but without any rules or obligation. This alternative method makes customers feel relaxed about making their own choices to purchase more.
Great times to offer freebies are when you are releasing a new product, when you need an aid in up-selling/cross-selling or simply looking for a new way to market your business. Right now you are probably looking at your income and wondering how much you can afford to give away for this kind of campaigns. In reality giving away free items is a great PR stunt for large companies and they can reach far more consumers than any SMB can. So how do you run a freebie campaign without losing out?
Here’s some alternatives:
Effectively, you want either new customers coming in and becoming regulars or enticing current customers to come in and spend more with you by trying something different. Today’s consumers have a world of choice at their fingertips, so empower your customers to make the right decision by choosing you each time.