Have you ever seen a brand run a contest or a giveaway on social media? By 2018 you should be pretty familiar with the concept, but what you may not have considered yet is how this tactic could help you drum up business in a BIG way.
How It Works
At first glance, it might seem like an expensive gamble that will have you seeing red in no time. However, research has shown that consumers are more likely (about 20 %) to talk about a product if they received it for free than if they had to pay for it.
We are seeing the best effects of two strategies at work with giveaways and contests:
- Consumers love free stuff. It feels like receiving a gift, so they associate positive emotions with the experience. When these recipients share their experiences with others, your business benefits from word of mouth advertising.
- Another way those positive emotions are being put to good use is through cultivating brand loyalty. We give gifts to show our appreciation. It is no different with giveaways and they are often described in that way by businesses. Customers are far more likely to shop where they feel welcome and appreciated.
Creative Ideas for Freebies
A giveaway can be anything of real value. A time honoured strategy is to give out pens, tote bags and clothing accessories featuring a brand name or slogan. If you want to compete with all of the other businesses online, you will have come up with something that offers a much higher value.
- New businesses often find success offering their own products or services for free. This approach is a good way to show confidence in your product, while also giving customers the chance to experience your product.
- Offer a free service with the basics, then offer premium services with extra features. Should your customers enjoy the free product, they are more likely to upgrade to the premium versions. Premium features often include one-on-one staff support, less restrictive access to already existing features (like colour palettes, templates, etc.) and access to new features that allow customers to derive more value from your products.
- Free trials are another way to expose your target customers to your product. Trials should last as long as it should take for users to feel comfortable using your product. Life with the product should be noticeably better than life without it. The Amazon Prime 1-month trial is a great example of this.
Running a social media contest or giveaway is simple to do and cost effective for you. If you would like to know how your business can benefit from this online marketing strategy, connect with us! If you would rather an expert take care of your social media accounts for you, we can do that too! Call us or fill out our contact form to get in touch.