Business advantages to giving away freebies

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Marketers have long-time considered freebies to be an attractive way to advertise. In marketing circles, this approach is considered a way to allow consumers to have the opportunity to "test drive" products (or services) they want to promote. The advantages of giving away freebies to consumers are many for the business.

Business advantages of giving away freebies

Savvy marketers can use this tried and true business strategy to their advantage. For the marketing company, there is a cost associated with freebies but, as for most lucrative ventures, often money has to be spent in order to get some sort of return. You've got to figure in any aspect of financial gain unless you invest, you don't have an opportunity to earn.

By budgeting in some money towards free samples and trial offers to market, companies have a prime chance to not only introduce their products to new market segments but also keep established customers satisfied. While it is mainly new customers companies offer freebies to, for those customers still sitting on the fence, offering a freebie is a great chance to re-attract a customer.

Image credit: Pixabay

Turn a customer's eye

Many people today are strapped for cash, or unwilling to spend as much money as they'd normally spend and, as a result, welcome any kind of freebie. This is a perfect opportunity for companies to introduce consumers to try out their products.

Free samples and trials are beneficial to consumers. After all, customers (or potential ones) not only receive something for nothing, giveaways are a great way to try new products consumers may not have normally considered for purchase. Through free samples, people often discover truly worthwhile products or services.

There is no downside to a freebie for the consumer because no money has been spent, so even if the product turns out not to be appealing after all, it's basically nothing ventured, nothing gained. The only potential issue associated with freebies is the privacy factor – companies will usually want contact information or other personal details in exchange for the product. That is a decision the consumer will ultimately have to weigh out.

Long-term benefits

The advantages of giving away freebies don't end with the gift of the product or free trial. Customers who receive free offers are likely to remember this gesture and associate it with generosity.

• Consumers are more likely to buy once they have a good idea of what they are spending their hard-earned money on. 
• Free trials and samples are a great way to introduce new customers to a product.
• Businesses gain the opportunity to gain a new loyal customer 
• The effort of free is likely to be appreciated.

If the item meets the needs of consumers, or they develop a taste or preference for the product or service, they'll be likely to buy again even after the free time frame is over and even possibly become a loyal repeat customer. Not to mention the potential of sharing their experiences on social media – that type of advertising and brand recognition is valuable! Word of mouth is golden in the 21st century for (at least) three reasons:

• It's free advertising (one form of ROI on the money spent on the giveaways)
• People tend to trust personal recommendations (some statistics place it as 92 percent)
• On social media there is potential for a viral-type of exposure.

While there is somewhat level of risk of not getting a return on this investment, if the product or service is quality and married with a marketing campaign done with flair, chances are it will be a winning proposition. Giving freebies to consumers is a tried and true practice which has proved successful time and time again.