By Debashree Roy
As the adage goes, “Out of clutter, find simplicity”. Today consumers have control over which advertising messages they click on and interact with when it comes to online advertisements. They refrain from clicking banner ads, skip ads in online videos, and close pop-up ads straight away as they appear on their screens. When an individual visits a website, he/she usually has some sort of objective in their mind, assuming it’s to read news stories, catch up on celebrity chatter, socialise with friends, or shop for something specific. Thereby, turning a blind eye to the online advertisements on the website. As brand marketers struggle to overcome the challenges posed by the cluttered online advertising space, they are turning to the tried-and-true sales promotion technique of freebies.
Freebies are not only limited to FMCG brands, such as HUL and P&G, or retail chains, such as Dominoes and Starbucks. Even online grocery stores, such as BigBasket, and food delivery service provider brands, such as Zomato and Swiggy often compete to provide freebies via free home delivery. Jio disrupted the telecom industry through its effectively planned freebie strategy. To capture market share, Jio laid out free services at its onset, while slowly transitioning towards paid service. Due to the growing popularity of freebies, there are online firms like Smytten and Coupenyaari wherein customers are provided freebies of beauty, food, and beverage products.
But why do customers enjoy freebies so much? The reason is simple. Consumers experience euphoria from receiving something beyond what they paid for. In light of this, promotions that involve some sort of rewards work wonderfully. Brands provide freebies for a certain group of shoppers to promote product dissemination through ripple effects among consumers and their peers. Freebies operate on the principle of reciprocity, which essentially means that when consumers enjoy a brand’s freebies, they favorably reciprocate towards the brand, in the form of a) purchases, b) positive word-of-mouth, and c) brand loyalty.
Brands can follow the Attract🡪Engage🡪Delight strategy to implement freebies. At the outset, freebies are a powerful instrument for attracting and enticing customers to a brand. People appreciate freebies, particularly when they are extremely valuable to them. If brands want to create a buzz about the launch of a new product, freebies are an excellent means to get people to try new products or new variants of existing products. Therefore, consumers can experiment and discover their new favorites. By integrating freebies with loyalty programs, marketers can strategically execute their giveaway campaigns and obtain valuable customer data, including demographics, interests, and lifestyles.
Next, freebies are an effective way of cultivating customer engagement with a brand. This is because when customers receive freebies, they happily share their opinions with others, allowing the brand to quickly gain traction and expand its reach. Besides spreading positive word-of-mouth, customers are a lot more inclined to provide feedback to the brand for its improvisation. Thus, freebies enable a brand to gain customers’ “share of heart” through word-of-mouth, “share of mind” through customer input on brand improvement, and, ultimately, “share of wallet” through purchases.
Lastly, freebies should delight customers and leave an indelible mark in their minds to propel brand recognition and recall, as well as establish a favorable impression of the company. Brands can decide to delight their audience by providing exclusive access or special offers specially curated for them. For optimal impact, brands must ensure that the freebie matches their brand and resonates with the tastes and preferences of their target audience.
The author is asst. professor of marketing at Great Lakes Institute of Management, Chennai
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