5 Incredible Reasons Why You Should Use Free Giveaways

Anyone who has worked in marketing knows the power of the word ‘FREE’. People love it when they get something for nothing. It triggers an emotional response that compels them to say, “why not, it’s free!” It also makes them perceive the value of the item received to be much higher than it really is.

This is the reason why marketers rely on the power of free business giveaways to gain new customers, bring in higher sales, and generate goodwill.

Here are 5 reasons why you should include free business giveaways in your marketing strategy:

1. Consumers Feel Obligated to Purchase

When you give free giveaways to potential customers, they feel psychologically pressured to ‘return the favor’ and buy something from you. This is why promotional events like Free Comic Book Day or offering the first donut for free are big money makers. This principle is called the Law of Reciprocity and the success of free giveaways can be attributed to it.

2. You Get Free Publicity

With the power of social media, it doesn’t take long for word to travel. If your business is giving away freebies, people will notice and want in on the action. Sometimes, the publicity your promotional marketing campaign will generate will far exceed the cost of the giveaways.

When GM donated around 300 of their new Pontiac G6s and gave them away on the Oprah Winfrey show, it put them under the spotlight. The amount of TV, radio and web coverage this act generated got everyone to talk about its new car and enhanced their image.

3. Cost of Sales Exceed the Cost of Giveaways

It may sound crazy when someone says that you can earn more by giving away freebies to customers. Many businesses hesitate to employ business giveaways as they fear it will negatively affect their bottom line. Contrarily, free giveaways are proven to increase sales.

On July 11, 7-Eleven gave away 7.11 oz. Slurpees to anyone who entered their store to celebrate their unofficial birthday, no strings attached. One might think that this move cost them a lot of money but this led to a 38% increase in Slurpee sales!

While people were sipping on their free Slurpee samples, they ended up buying larger bottles of their favorite flavors. They also restocked their supplies of other goods while they were at the store, and 7-Eleven made profits in the process.

4. They Can Act as Samples for New Products

When you launch a new product, people may be hesitant to try it out. They feel that if they are disappointed, they’d be wasting their money. Most people will try almost anything if it’s for free. So, when you offer them a free sample, they are likely to try it out and if they like it, they will pay for it.

Businesses can target likely purchases with such giveaways. It helps them prove that they have a better or different product, and creative a positive experience for the customer. Many gyms and hobby classes offer a one-day pass or trial session for the same reason.

5. They Develop Positive Brand Association

When people get a giveaway from a brand, they feel special and it makes them happy. If the giveaway is useful, they will think of your brand every time it is used. They remember how special your brand made them feel and create a positive impression. This is how many companies develop consumer loyalty.

You can browse through our wide range of promotional products and pick a business giveaway that fits your budget and requirements. Or contact our team and we will help you find a promotional gift that’s right for your brand.

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jayden samuelson
Jayden Samuelson is an online marketing manager at Promo Direct . He is responsible for strategizing and executing all SEO and digital marketing plans for the company’s website. He is also a regular contributor to Promo Direct blog and several other sites. You can follow Jayden on Twitter and Facebook.
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