Customers just love free gifts. However, smart companies like them even more. Why, because they know that freebies help to boost their sales.
Read on to know how you can win big time by handing out freebies.
- Customers feel obliged to purchase more
There is something that smart marketers know: when you hand out freebies, the customer feels obliged to purchase more!
It might feel untrue, but that is what exactly happens. Moreover, that is why promotional events such as Free Comic Book Day turn out to be a huge success, even when the company gives away thousands of dollars worth merchandise for free.
Handing out corporate gifts works because of reciprocity principle.
In 2005, a study concluded that people feel obliged to reciprocate favours, even those that they did not ask for.
Another study backs this claim. According to it, nearly half of the customers who received a gift said they were likely to do business in future with the company.
So if you were a small business owner or a marketing head of a big company, it would be a perfect idea to plan a gifted program. One thing to take note is that you must remember that all freebies program that has helped to boost sales were those that the gifts were of high quality and something that customers enjoyed receiving.
- Customers are ready to pay more for a product later, which they have received free as an add-on
The human mind works in strange ways, if a product is an inexpensive item, customers perceive it as low value, but when the same product is given as a freebie with an expensive high-end item, customers are ready to pay more for that product later on.
Skewed as this may sound, there is a logic behind this fact. It is easier to assign a value regarding dollar to an item, which carries a price tag than to an item, which has no price. So when a freebie is thrown with an expensive item, consumers think it too would be of high quality.
- Customers are tempted to buy more if there’s some mystery involved
In one research, study authors found that consumer feels prompted to buy when a mysterious free gift is attached to a fun product, that is a product that makes customers happy or feel good about themselves. The trick here is not to disclose beforehand what the freebie is.
- Customers talk about free gifts with others
Word-of-mouth is a powerful marketing medium even today. Customized corporate gifts have the power to make customers special and happy, so much that they would like to flaunt their gift and in the process spread awareness about your brand.
More and more companies are recognizing that the best way to get customers to talk about their products is by handing out freebies. In one study, the researchers noticed that people who received a freebie talked about it 20 percent more.