Companies don’t necessarily need to give something away to take advantage of freebie marketing strategies. Freebie marketing is defined as any promotion, low price product, or giveaway that encourages the sale of another, higher value product. Sometimes freebie marketing campaigns are referred to as loss leader programs. Many businesses use some form of freebie offering to encourage sales.
Almost everyone responds to the word “free.” When they see free shipping, a gift with purchase, a free e-book, or a buy-one-get-one-free deal, people take a second look. As a marketing tactic, offering freebies earns a spot as a core revenue generating activity.
Online brands may offer free games, trials, and tools. Service providers often offer free trials to encourage sales while attorneys often provide free consultations. Even physicians may offer free samples of medications, if prudent. While many freebies deliver value, they also drive sales, which is why they serve as such as powerful marketing strategy.
To successfully employ a freebie marketing strategy, businesses must consider the bottom line. Top sellers and large ticket items rarely work within the freebie marketing model. Instead, businesses search for value-added, low-cost products that will drive subsequent sales.
Freebies typically market themselves. Brands need only provide relevant information in multiple channels including websites, social media pages, and offline publications. Often, consumers will spread the word about a great deal or freebie, eliminating the need for extensive in-house marketing.
Successful freebie offerings share similar attributes. They meet a brand’s target market where they spend time, deliver something of value, and avoid asking too much of the consumer. A prospect may willingly share a name and email address, but avoid offerings that require more specific information.
When using the freebie strategy, marketers who maintain clear goals and measure the response rate of each campaign create financial ROI. In addition to increased sales, freebies can improve brand visibility and reach within the marketplace.