The old saying that there are no free lunches certainly doesn't apply to today's retail environment. Though marketers have debated the efficacy of offering freebies to lure new customers into trying their products and services, a study by iYogi finds the "try-before-you-buy" model to be an effective strategy for converting consumers into shoppers. Among the 2,000 people surveyed who had sampled new products or services for free, nearly half (42%) did end up buying additional products or services.
Giveaways are a staple of the marketing mix but it can be hard to measure their effectiveness. As a result, marketers can be reluctant to use this type of promotion to build buzz and drum up new business. But the findings of this research make a solid case for including freebies in your programs. Giveaways can be a very powerful tool, especially when deployed with creativity: take note of the limited-time offers as well as the clever way IKEA incorporated social media into its offer.
"Promotions from the U.S. Retail Industry (EAT, SVDNF, AMZN, FB)," About.com Retail Industry, 5/21/12 retailindustry.about.com/b/2012/05/21/survey-finds-freebie-promotions-do-motivate-sales-this-weeks-freebie-promotions-from-the-u-s-retail-industry-eat-svdnf-amzn-fb.htm