How Important is it For Businesses to Offer Something For Free?
Most business owners who have been battling for customers for some time will know how hard it is to win clients away from rival companies. The internet has generated a saturated market in almost every industry, and the abundance of choice means that customers have no reason to be loyal or to shop with a particular brand. Entrepreneurs need to realize that in order to win the customers over and keep them coming back for more, offering something for free at the start is a great way to do this.
Customers Need Something to Pique Their Interest
There has been a vast amount of research into consumer shopping and spending habits, and businesses need to use this to their advantage when planning how to attract new customers. For instance, it has been found that over 90 percent of shoppers will use coupons consistently throughout the year, and this highlights how the majority of people are in search of a bargain.
Another interesting piece of research found that businesses were able to sell up to 73 percent more when they offered a bonus pack to customers. On top of this, seven out of ten people reported using an emailed discount, and 75 percent of customers search through their inbox for offers. These figures show that free or discounted products or services are among the main things that customers value.
Offers can often be used by a business as a way to pique a potential customer’s interest and get them to find out more about the company. The average internet user may not be tempted to click on a link, but if they see that there is the opportunity to win a prize they may be slightly more intrigued.
Freebies Are Common in Major Industries
One of the main things for businesses to consider is the fact that customers know they can get freebies and discounts in various places. If they don’t see one at a particular business in a saturated market, they’d simply look elsewhere. This is underlined by the abundance of offers in major online industries.
The online casino market is one sector that is awash with offers, and this is because there are so many sites offering the same or a similar thing. Companies need to do as much as they can to stand out, and this includes offering free games to give players a taste of the site before they invest. Slots, in particular, are among the most popular free online casino games, so free spins are a common offer for new customers. Elsewhere in the gaming industry, there are plenty of free games for people to enjoy. Indeed, the freemium marketing model has flourished on mobile with games like Clash of Clans and League of Legends.
Some of the world’s biggest and best services give customers a free trial of their products before they have to spend any of their own money. Netflix and Spotify both provide a month for free, giving potential subscribers a full experience of their platforms before they spend any of their hard-earned cash. They use this opportunity to get viewers and listeners hooked by providing an excellent service.
How Can Small Businesses Afford to do This?
Replicating the big businesses and giving customers a lot of things for free simply isn’t feasible for most small businesses, and it wouldn’t make financial sense either. The concept of reeling customers in with an incentive or a free offering can still be done, but in a scaled-down way. For instance, independent coffee shops can run promotions where every sixth cup of coffee is free, and hairdressers could do something similar.
Online businesses can design competitions on social media which may or may not result in a free product or service from the company. A common technique is to make a catchy ad and reward those who like and share it by putting their names into a draw to win a prize. This way, the business only needs to budget for a few prizes, but can reach a high number of potential customers in the process.
The studies say it all – free offers and promotions win customers. The fact that some of the biggest companies in the world use this technique shows that it does work. Business owners need to consider how to run offers and promotions if they want to beat their rivals and bring in a high number of clients.