This is why companies give free stuff and how they benefit from it

So, are you surprised by Wal-Mart handing out free samples? You really should not be, as you are bound to come across more than one company handing out their stuff for free. The fact is that companies, both small and big alike, compete for the same and often try to outdo each other. Think back to the cola wars and you’ll get a good idea as to how aggressive these companies can be when it comes to hawking their merchandise. Here are a few reasons as to why these companies continue to hand out free products and samples.

  • Freebies create buzz: If you have just set up shop and want to create some traction online from the word go, then one of the effective ways is to offer customers and others some personalized merchandise. This can help the customers to connect better with your company and chances are that they would become a loyal customer as well.
  • Encourages people to try out the product for free: When you ask people to try out your products, they generally assume that they would have to pay for the same. However, when you offer up promotional gifts and product samples, they would be more willing to test your product out. And in the process, you get valuable information and feedback on what the public thinks of your product or whether you need to go in for a few tweaks.
  • Marketing strategy: Think of the ‘free samples’ and ‘free gifts’ as an effective marketing strategy. By gifting prospective customers with free gifts, you are essentially letting them know about your company, and what you stand for. Also, make sure that the free gift also contains your logo so that these customers can easily identify the same.
  • Re-branding: By offering free gifts and samples, companies seek to rebrand and reposition themselves, and as a result, prospective customers are more likely to remember the brand that got them this wonderful freebie.  And as a result, these prospective customers are more susceptible to various marketing campaign than others and therefore, are more likely to purchase products from the organization.
  • Customers are more forgiving with freebies: Generally, most customers are often happy to get something for free so even if the product does not have much of an appeal factor, they would still be happy to get the same for free. You can set up a survey which allows them to register their response and you can use the same information to tweak your product, if and when needed.
  • Connect with the masses: By offering prospective customers with free merchandise, you are essentially offering them a brand association. And it is all the more likely that these people would give your brand a trial at some point in time. They would be curious to check out your line and would definitely want to try them out in the near future. And by providing them with free gifts, you are essentially connecting with your future customer.

These are some of the reasons as to why companies often offer free gifts and promotional offers. It could be something as simple as a key chain with your logo emblazoned on the front, or you could go for more personalized gifts. There is no specific rule as to what type of gift to go for, or for that matter, how much you should spend on the same. But a better way of tackling this is to study your demographic and find out what is it that they prefer and design your gifts based on this input. Chances are that your audience would love your gift and would want to check out your company.

Leave a Reply