Hands up if you like getting something for free? Thought so. The words “free product” are enough to prick anyone’s ears up; but from a business point of view, is it really sustainable? When is it a good idea to give away something for free and risk making a loss? An article I read last week on Econsultancy aimed to answer just that.
- Online retailers should try to offer free shipping whenever possible – it’s something that 81% of customers look for. The free shipping perk should give them the incentive to spend more money; around 58% of customers will add items to their cart in order to qualify. Offering free shipping to buyers who set up an account with your business can also unlock a load of data, meaning you can personalise their future shopping experiences.
- Building loyalty is one of the most important tactics when it comes to generating spend. Around 54% of people would think about expanding the amount of business they do with a company in return for loyalty rewards. It could, therefore, be worth lowering the order threshold for free shipping to those who have set up an account with you.
- How do you sell those slow-moving items? BOGOF can be a good strategy. And, if you have small items in your warehouse, you could include these as a treat for your loyal customers to make them feel valued.
Have you ever given anything away for free and then regretted it? Or have you found it worked a treat?