Free customer offers should form an essential part of the marketing strategy for your startup as giveaways can attract customers and encourage brand loyalty, which is particularly important for companies in competitive sectors. Let’s look at ways you can learn from the creative ideas of major companies that speculate on giveaways to accumulate long-term profits.
Using free offers to entice new customers
Companies can encourage increased customer spend with the offer of free products. Macy’s offers a free five-piece beauty gift, consisting of either Carolina Herrera, Giorgio Armani, or Paco Rabanne perfume when spending $150 on a beauty or fragrance purchase. The opportunity to obtain a free gift is a significant factor in customer behavior, with customers more likely to spend more to qualify for a free gift. Free offers can be found in a wide range of sectors. In the highly competitive iGaming sector, free offers are a tried and tested mechanism to attract customers who enjoy slot games. With no deposit necessary or any wagering requirements, free spins give customers the opportunity to test out slot games without using their own funds. Plus, ongoing promotions such as Prize Pinball, which offers customers a free daily shot at winning a jackpot, are an excellent way to foster customer loyalty.
You can also incorporate freebies with a loyalty reward scheme. Starbucks Rewards gives customers the chance to earn free coffee, plus incentives such as coffee and tea refills, and a reward on your birthday. The loyalty scheme is, of course, free to join with customers earning points on every purchase. By adding partners to the program, such as Delta Air Lines, customers can link loyalty accounts and unlock perks such as Delta SkyMiles.
By collaborating with other companies, Starbucks is tapping into FOMO, the fear of missing out, as an important marketing strategy for companies. Incidentally, in its SkyMiles program, Delta Air Lines stipulates that there is no expiry date on air miles, this ensures its customers are content and from a business perspective the airline benefits from a long and fruitful customer relationship.
Free offers come in all shapes and sizes and by implementing the creative ideas of established companies, you don’t necessarily have to give away products for free. Walmart, for example, offers its customers a free 30-day trial to its subscriptions service Walmart+. With a wide range of perks including a Paramount+ subscription, free delivery from your local store, and free returns from your home, Walmart is banking on customers being so impressed by the service they decide to continue membership at $12.95 a month when the trial ends.
Cashback is an excellent driver of customer behavior as it encourages people to make purchases with the opportunity to generate a cashback balance. Kroger, alongside digital coupons and weekly deals, gives customers the chance to get cash back on a range of essentials and treats. In the hyper-competitive retail sector, a range of offers are required to stay ahead of the game.
Hopefully, this article will have given you some useful ideas for free promotions for your startup. Free offers are a great way to attract customers and ongoing promotions can help keep them loyal to your brand, they don’t need to cost you the earth and the rewards are well worth the effort.