Customer Freebies: A Cost Benefit AnalysisPosted by Nicole
There are two schools of thought on customer freebies.
On the one hand, the naysayers advise against setting a precedent. Tell your customers they don’t have to pay for your stuff and they’ll forever resist paying for it. Why put in the hard work of trying to convince people your products and services are valuable, only to give ‘em away for free?
While there is great wisdom in avoiding practices that bleed money (and are therefore unsustainable for your business), there are also a number of very worthwhile benefits to giving your customer something of value for free.
5 Pros For Your Freebie Cost Benefit Analysis
- Free stuff brings people out of the woodwork. Want to attract new customers? Promote a free giveaway, sample, or report.
- Giving something for free increases brand awareness AND make a great first impression.
- In the online world, everyone expects it. You won’t build your list or get newsletter subscribers without an incentive.
- Give your prospects something for nothing and they’ll come back. Keep offering greater value and odds are they’ll eventually pay for it.
- Offering a freebie doesn’t just break the ice — it also builds that invaluable sense of trust.
Offering A Free Sample Eliminates The First Barrier: Risk
Perhaps the most important reason to give something of value away? Re-read number 5.
Beginning and end of story: people need to trust you before they’ll open their wallets. You’ve probably read it and heard it a hundred times. Maybe you’ve even said it yourself.
When you encourage people to trust you with something that doesn’t cost them anything (and ideally doesn’t cost you much, either) you’ll pique their interest in what else you’ve got. Win-win.
What side of the freebie fence are you on? Has offering freebies helped or harmed your business?