Should You Hand Out Freebies To Customers in 2020?

Hand Out Freebies - Yes or No?

Most companies want to treat their customers well. They know that if they keep people on their side, they'll stick with them longer and be more loyal.

You can't just reward people who don't pay you, though. Doing that would herald the start of a dysfunctional relationship.

Should You Hand Out Freebies To Customers in 2020?

In some cases, though, you should hand out freebies to your customers. Or at least make it look that way. The reasons for this are psychological, and they could have a radically transformative effect on your firm.

Once you understand how to leverage them, you can win more business.

The Reciprocity Principle of Handing Out Freebies

When you hand out something to people for free, it makes them feel like they have an obligation towards you. Our lives are so dominated by trade that we find it difficult to imagine a situation where somebody would give us something for nothing. As economists like to point out, there's no such thing as a free lunch.

Interestingly, though, this belief isn't conscious or rational. Researchers think that it emerges from the subconscious - the part of the mind that people can't access directly. You can tell a customer that they have no obligation to buy from you. And yet, if you give them something for free, they will automatically want to reciprocate in kind.

Smart managers know this, and so they take advantage of it as much as they can. Customers love free stuff. And they also like exploring new brands that offer them precisely what they want.

Reciprocity is all part of doing business. Handouts can be the perfect way to make it happen and ensure that people associate your brand with delivering genuine value.

And yet, if you give them something for free, they will automatically want to reciprocate in kind. #freebies Click To Tweet

The Marketing Principle of Freebies

There's a second reason why giving out freebies is so compelling - the marketing principle.

Marketing your business is a challenge in the modern world. Everyone is trying to get their message out - and not all succeed. As Dynamic Gift discusses, though, branded freebies provide added benefits.

For instance, whenever somebody uses a product, they advertise your business, both to themselves and other people if they are in public.

It is, therefore, a sneaky way to improve your marketing advantage. Depending on your choice of freebie, people can use it for many months or years, providing your firm with thousands of valuable impressions.

Another way to offer freebies is to do a fun contest. Oftentimes, people may enjoy entering to win as they feel they do not need to reciprocate. But if they love what they win, they probably will be back to make a purchase. The same can be said for FREE trials. I love testing things out, especially digital tools before making a purchase.

For instance, whenever somebody uses a product, they advertise your business, both to themselves and other people if they are in public.#marketing Click To Tweet

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Hand Out Freebies - The Conclusion

Freebies, however, only make sense when the underlying goal is to enhance the performance of the business. As a firm, you're still in the business of making a profit. Handing out stuff to your customers, like samples, can be a great way to get long-term loyalty, but it can also become expected.

The purpose of a sample, for instance, is to ingratiate a customer with your product or services. It is not to do them a favor. The same goes for a gift. The idea is to encourage them to interact with your brand and convert.

If you decide to use freebies, make sure that you collect analytics and demonstrate its positive effects. That way, you stand a much better chance of making a return.

So far the answers are tied in this Twitter poll below about receiving freebies.