People love freebies. And for businesses, giving away free stuff is not new or unusual. Rather, it can be a very useful marketing tool. Offering a freebie is a great way to promote a product or service. This will generate leads and, in turn, profits.
However, even when taking this into account, many small businesses are reluctant to adopt this strategy, because of the obvious cost implications. So, is giving away freebies worth it in the long run? Let’s examine the advantages more closely.
Customers will spread the word
Everyone likes getting something for free. Many people who love free stuff also spend a lot of time on social media. If you’re giving away, for example, a free webinar, people who jump at the chance for some free information and advice are likely to tell others about it. Within half an hour or less, the news can spread far and wide. Of course, the ultimate desire here is that you gather many more takers for the free webinar, a percentage of whom will then sign up for the paid course.
People tend to reciprocate
After getting something for free, people often feel the need to give back in some way. This phenomenon is otherwise known as “the norm of reciprocity”. With this in mind, giving away a freebie will lead to a certain number of people to purchase more of the product. For example, homemade candy shops sometimes offer free samples on the street to passersby. Many of those who try the candy is likely to purchase a full packet, even if they weren’t previously shopping for candy. In terms of demand generation, recording how many people sign up for your freebies is important. Learning about demand generation will tell help you understand why posting free content will, in turn, persuade people to sign up for your free samples.
Risk-free trial for customers
Potential customers will be more likely to try a new product or service. However, if it is free and does not require any commitment. This is why many businesses offer free month trials, or trial sessions before asking customers to sign up. By offering something free in this way, you’ll gather customers. They were not even looking for a product or service until they knew there was something free on offer. Of course, once they’ve trialed your product or service, and like it, they will know they’re safe to part with money. On that note, it’s very important that your freebie is up to standard. If customers are not impressed, this could damage your reputation.
Almost without exception, businesses are set up with the chief goal to make money. Therefore, particularly at the beginning, it can be difficult to conceptualize giving something away for free. However, the topics discussed here will hopefully help you to understand the benefits of offering freebies to your customers. Providing these products or services have a clear aim to persuade the customer to sign up or purchase a full-price product. It’s important to put together a careful demand and lead generation strategy to decide on the best course of action for your freebie promotion.