Nothing comes for free, but everybody loves receiving free stuff.
Whether it’s complete samples or small testers, or in-kind donations, sometimes free stuff can help raise awareness of your company, generate buzz and attract new customers.
But how do you justify giving away free stuff when your return on investment (ROI) is unknown?
For marketing, one per cent return from direct marketing techniques, such as email, online display ads, fliers, catalog distribution, promotional letters and outdoor advertising is considered a success. For example, if you hope to achieve 20 new customers then you need to target at least 2,000 people or households. Sounds like finding a needle in a hay stack, right? It can be.
Direct marketing was once a very popular method implemented by companies, but with the advancements of technology, some direct marketing activities have become obsolete while more have become more prevalent, but also disregarded.
Consumers are smarter, more critical and have more power to control the messages they wish to receive or not receive. From “no solicitors allowed” signs to opt-out or spam controls through emails, marketers are finding it harder to reach consumers and gain ROI.
So how can you reach consumers, get their attention, learn more about them and attempt to gain their business?
Why not try giving something for free?
I know this can be seen as a big risk or investment, but below are a variety of options on how you can generate buzz about your company, products or services, get consumers to try your product or service, and build positive brand association. Keep in mind that all of these options can be executed on a small or large scale. Before you choose an option, it’s a good idea to first plan out: a) total budget, b) cost of production and distribution, c) type of outlet or distribution method (store, sidewalk, gala, sporting event, online, email, traditional mail, etc), d) type of audience (demographics), and e) how are you going to measure your ROI?
- Give away a complete sample or small tester of your most popular product or a product you feel the majority of consumers will like. If you’re unsure, ask your close family and friends to sample and vote for the best product.
- Offer “buy one get one free.” Instead of giving the same product twice, perhaps you can add a personal touch by allowing the customer to choose their free product. You can control their purchasing power by offering any product under a certain amount or they can choose from a selection of products that you have specifically chosen for an important reason.
- Give your products or service as an in-kind donation to a fundraiser or corporate event for their silent auction, door prize give away, swag or as a speaker gift. Feel free to ask the organizers if you can supply business cards with the in-kind donation and have them place your cards on the dining tables or at the main entrance, or on the promotions/marketing table. Depending on the amount of your in-kind donation, you may also be eligible for further promotion such as a logo display on the event website or signage and/or sponsor announcements during the event. Tip: choose an event that complements your company’s brand or represents a target audience that matches your target consumer base.
- Organize a contest. This can be a great opportunity to partner with your local media and/or jump start or increase your social media engagement (Twitter, Facebook, YouTube, Flickr, Foursquare) . The sky is the limit with contests. Let your creativity soar and don’t be afraid to have your consumers work for the prize (fill out a short survey, write a short testimonial, answer a question, execute a treasure hunt) and the list can go on.
Related articles:
6 reasons giving away free stuff can work for your small business (ideas4smallbiz.com)














