It might seem counterintuitive, but giving away freebies can ultimately earn businesses more money. The smart use of freebies allows brands to provide value upfront and foster positive experiences, consequently increasing brand loyalty and customer retention.
Freebies can also serve as effective marketing tools, as they have been proven to help attract new customers and differentiate the brand from competitors. By building trust and credibility with their customers, enterprises can enjoy repeat purchases and referrals and improve their sales.
To maximize the impact of freebies and promotional giveaways, though, it’s a must to understand just how they work. How exactly does giving away personalized lanyards and other branded items help an enterprise strengthen its connection with customers and gain the loyalty of new buyers? To know the answer, let’s take a closer look at the psychology of freebies.
Freebies Trigger a Sense of Excitement and Pleasure
There’s an undeniable thrill that accompanies the surprise or unexpected delight with receiving a free item. It’s akin to finding a hidden treasure or receiving a spontaneous gift from a friend. It’s a smart idea for businesses to tap into this sense of excitement and pleasure, which they can do by offering freebies that evoke curiosity and anticipation. For instance, they can provide a mystery gift with every purchase or give them out as a limited-time offer. The element of surprise that comes with these freebies adds an extra layer of excitement to the customer experience.
By incorporating surprise elements into their freebie offerings, businesses can create memorable interactions that leave a lasting impression on their customers. Using this strategy, a clothing brand might include a surprise gift in randomly selected online orders. A coffee shop, on the other hand, might offer a special promotion where customers have the chance to win free drinks or discounts through a scratch-and-win card distributed with their purchase.
Freebies Reinforce the Brand’s Perceived Value
The concept of receiving something for free inherently conveys a sense of value to consumers. This is not just about monetary savings. Rather, it’s about feeling appreciated and valued by the brand. Businesses can leverage this perception of value by offering freebies that go above and beyond customer expectations.
Instead of giving away generic promotional items, businesses can focus on providing high-quality freebies that align with their brand image and values. By offering valuable freebies, enterprises of all sizes can enhance their brand reputation and foster stronger relationships with their customers. For example, a skincare brand might offer deluxe-sized samples of their top-selling products, which is an item that can showcase the quality and effectiveness of its formulations. In providing customers with a taste of their premium offerings, the brand reinforces its commitment to delivering value and excellence.
Freebies Give Customers the Opportunity to Sample Products
More than just making customers feel good about their relationship with a brand, freebies also offer practical benefits. It is, after all, a way to give consumers the opportunity to try out products or services without any commitment. This sampling experience allows potential buyers to gauge the quality and suitability of the offering before making a purchase decision. To capitalize on this opportunity, enterprises can launch programs that offer free samples or trials of their products in strategic ways.
Instead of relying solely on traditional advertising methods, businesses can use freebies as a way to engage directly with their target audience and showcase the unique features and benefits of their offerings. A software company can offer free trials of its latest app, which can then allow users to experience its functionality firsthand. By providing consumers with a taste of what they have to offer, businesses can increase consumer confidence in their products and services and drive future sales.
Freebies Reduce the Risk That Comes with New Purchases
That said, when consumers receive something for free, they feel less pressure to make a commitment to the product. For them, there’s no financial investment involved in using a promotional item, and they can use the sample or freebie to temper their expectations of the brand’s products.
Businesses can leverage this principle by offering freebies that address common concerns or objections that consumers may have concerning a product. Removing barriers to purchase can be a means for enterprises to increase consumer confidence and encourage them to take the plunge.
For example, a meal delivery service might offer a free trial period with no obligation to continue, giving customers the opportunity to experience the convenience and quality of their service risk-free. Offering freebies with clear terms and conditions in this manner gives businesses the chance to instill trust and transparency in their customers, ultimately leading to higher conversion rates and customer satisfaction.
Freebies Appeal to People’s Fascination with Novelty and Reward
Receiving something for free appeals to the human fascination with novelty and reward. Whether it’s a special bonus for loyal customers or an exclusive offer for new subscribers, freebies create a sense of anticipation and excitement that keeps customers coming back for more. It’s possible to leverage this sense of novelty and reward by offering unique or unexpected freebies that surprise and delight their audience. In creating memorable experiences, businesses can strengthen their brand affinity and foster deeper connections with their customers.
For beauty brands, such a business can offer personalized skincare consultations or makeover sessions as a freebie for VIP customers. This, in turn, offers the said customers a unique and valuable experience they can’t get anywhere else. By offering freebies that are tailored to their audience’s interests and preferences, businesses can create moments of joy and delight that leave a lasting impression.
Incorporating freebies into marketing and promotional campaigns can provide businesses with a powerful tool for engaging consumers, increasing brand loyalty, and driving sales. Understanding the underlying motivations behind why people love freebies and designing strategic free offerings that align with these motivations empowers businesses to create memorable experiences that resonate with their target audience and set their brand apart from the competition.
