FEATURED ARTICLE:
Yes Virginia,
There are freebies & Give Aways
The old saying: “Nothing in life is free” is not quite accurate anymore. A new marketing method is based around the idea that if a business has give aways to potential customers of something of value that they need with “no strings attached”, that potential customer will be much more responsive to their product offers. There are many such marketing programs like credit card freebies, birthday freebies, student free stuff and other giveaway programs. Does it work? Market research shows that a business can increase their sales significantly by using this method.
Of course, businesses have had give aways for a long time. However, most of these were to existing customers. Many companies offer a free gift to potential customers but only after a purchase or other action, The bank that offers a toaster or football tickets is an example of the older method. Other companies may offer something but it is not always something that the potential customer needs or even wants. Choosing the right give aways and placing no requirements on the potential customer is what makes this new marketing method unique.
Casinos often use this method on their birthday freebies. When you sign up for a free players club card, the information that you provide includes your date of birth either directly or from information on your driver’s license. Casinos will say that they need this information to prove that you are at least 21 and therefore of legal age to gamble at their casino. However, with that date in their computers, casinos are able to notify you by mail (or email) that if you stop by the casino they have a birthday gift for you (usually cash in the $10 to $25 range). When most people pick up their “gift”, the casinos know that they will be at a slot machine or blackjack table in minutes betting their freebie. You know all too well what happens next. Soon the free money is gone and they are reaching for their wallet.
My wife just signed up for one of the new “credit card freebies” offers. The credit card company gave her a new, no annual fee credit card with a large credit line. Nice, but there is more. The card has a one percent cash back bonus and a bonus on that amount annually. Then comes the real “giveaway”. Once she spends $500 using the card she receives a $100 bonus. These are well conceived credit card freebies. Knowing my wife it will not be long before she gets her $100 bonus and using this card on many future purchases.
You will see more and more of this type of marketing in the future. When someone gives us a freebie, we normally have a natural good feeling towards them. If they then have something for us to buy, we are much more inclined to listen to their offer. Businesses are now learning to use this fact in their marketing programs.
