Once the digital era reached its peak, many businesses found themselves developing their activities in a much more competitive environment. Due to this, companies found freebie strategies as a solution to gain a competitive advantage and attract more clients. After all, who doesn’t love free stuff?
What is Freebie Strategy?
A freebie strategy is a marketing tool that may increase a business’ sales and raise their awareness among their targeted audience. Through this strategy, the company offers a low-cost product or it even gives it away for free.
The best and most common examples of freebie marketing are in the case of complementary goods. For example, when you purchase a mobile phone you can get some accessories for free. The mobile company could advertise their free products promotion to persuade potential clients into buying the main product, too (in this case, the mobile phone).
A freebie marketing strategy is similar to a free sample offering, but this last case does not necessary involve complementary products. The freebie strategy has been used for many years in the business domain. It is believed to have started with Gillette. They created a market for their blades by selling the razors at a very low price.
The only issue is that, nowadays, people are used to receiving free things from companies. Some say that this might either turn out to be a winning strategy for businesses, or it might bring more cases of bankruptcy. For the moment, marketers are trying to balance the numerous aspects of a “free gift”: is freebie a marketing strategy, a business tool or another modern form of art? They are working on making this tool something in between, to find a balance in the way they are addressing their target market.
How to Create a Strong Freebie Strategy?
- Make the freebie strategy a part of your overall marketing plan. You should not just go out there and offer people something for free. It should have a certain consistency and should be smoothly incorporated into the whole marketing strategy.
- Know your objectives. Why do you want to offer these free stuff? Are there good chances that it will help your business, and it will make it grow? Think of all these things and more, then create an intelligent freebie strategy.
- Discover your target audience. If you do not know who you are targeting, you will not find the best way to address those prospects. Find your potential clients and discover what they are into. You can do a lot of useful research online, especially on social media networks.
- Create an interesting and desirable freebie. Don’t offer the customers something they won’t like and will eventually throw away. Instead, give them something they will use and gain benefits from this. Something like a discount coupon might raise their attention. Target is a great example of this, being known in the industry for their strategy of linking a guest survey with a sweepstake that allows customers to win a gift card.
- Attach the freebie to another complementary product. For example, you can offer your clients a free portion of French fries. However, this is not a complete meal. Therefore, the clients will also order something else to go with the fries such as a burger or, at least, a beverage.
- Go for the influencers. You can first target clients with the potential to influence others. After finding these particular clients, you can politely ask them to try your freebies and share their experience with other potential customers.
- Ask for feedback. After offering your target market a freebie and receiving their contact details, you can send them a simple and small questionnaire asking for their feedback as well as for their willingness to receive further offers from your company.
Main Benefits of the Freebie Strategy
1. Gain more visibility
Offering free or low-cost products will increase the company’s exposure. Think that you will put your branding signals and logo all over your freebies. Therefore, people might get interested in what else you have to offer.
2. Increase your client database
By giving away stuff, you can add more potential prospects to your initial database. You might ask people to complete a small form before you offer them your free product. This way, they will give you their contact details, and you will be able to send them regular newsletters. This, of course, if they will agree to it. Make sure you always include an unsubscribe button at the end of your newsletters.
3. Increased sales
Your freebies could have a domino effect: your visibility and awareness will increase, people might get interested in your offers and will raise traffic on your website or social media pages. Then, some of those potential customers will become buyers, and your overall sales will increase.
All in all, an effective freebie strategy can truly impact your business in a positive way. You must follow the guidelines provided above and choose the best-suited freebie for your target audience. However, there is no standard recipe of how to increase sales by offering freebies. It all must be customized to your business model.
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