We all want more customers, a business may struggle with finding more customers, clients or trade. There are many ways of driving customers to you business, we are going to look at a simple but powerful method of customer generation.
Giving something away for free is simple, effective and may be low cost compared to some other methods of generating more sales.
Some of the benefits of giveaways are
Some of the problems of giveaways
Customers may think your product is lower value or cheap
Giving away the wrong product or service may not produce the results you want
Some peopole just want something for free and will not become your customer even after you have given them something for free. the way to minimise this risk is to carefuly think about what you are giving away, to whom and why. Also consider what action you want them to take and how the free product helps this to happen.
A giveaway can be more targeted than other ways of generating business for example advertising, people that take up the free offer may be more likely to pay for the product. For example a customer may take up an offer of a free cup of tea as they had been looking to try tea with thier breakfast purchase at a caffee. The offer of a free taster from a local restaurant may entice the customer to visit for a meal as they were looking for a new restaurant.
It may also be assumed that most potential customers may not take up the free offer if the product or service is not something they are likely to pay for. So the free offer may be used to win customers from other businesses by having them try out your product and service.
Try to give something away that is relevant, something that customers are likely to want and value. For example if you gave away some thing very cheap or of poor quality, you would probably make customers think that all your products are cheap and low quality. This is not a problem if what you sell is cheap and low price but it’s a big problem if you are selling something that has a higher price point.