The internet has changed how we shop. We can find a great deal on almost anything with only a few clicks of the mouse. But there is a downside to this convenience: free stuff is causing financial problems for many businesses. In this blog post, we’ll show you how to keep your company from going under because of freebies and give you tips for avoiding financial pitfalls in the future.
The one-click purchase is a dangerous payment method.
There are several reasons why online shoppers find it difficult to resist the temptation of free stuff, even if they don’t need it. Fundamentally, their buying decisions are limited by what’s available at no charge and not backed up with a strong enough interest in paying for things. This especially holds true on mobile devices which offer limited browsing options compared to desktops or notebooks. Consequently, some marketers resort to giving away free items with their wares because it’s their only hope of finding new customers who would be willing to buy at full price later. In most cases, though, businesses end up losing money because consumers never end up purchasing anything on top of the freebie that was offered.
Gimmicks and discounts overvalue drive customers to free stuff.
In a few cases, customers might even be swayed by marketing gimmicks designed to encourage them to buy something that they don’t really need. One example of this would be offering a “$5 today only” deal on a product that’s been priced at $10 from the get-go. In other words, businesses are using cheap tricks to make people spend money for items that cost less or the same as their regular price tags. What’s worse is many consumers fall for these marketing tricks every time and continue taking advantage of these offers without any intention of buying anything but the freebie(s).
Making it too easy to download gives people false expectations of “free”.
On the other hand, some companies are quick to give away their products without giving it much thought. They do this because they’re afraid that potential customers will just go elsewhere for what they need and lose interest in the process. However, there is a fine line between attracting new buyers and scaring away potential clients with an awkward user experience; we know that bad user experiences lead to customer dissatisfaction and high bounce rates. Yet, many businesses fail to realize that by making it too easy to download, people will expect things like manuals, tutorials, and support as part of their freebie. This can cause problems further down the line if these freebies aren’t available or don’t live up to expectations. As you can see from this brief introduction, there are several reasons why free items are giving businesses financial problems. Let’s discuss some strategies for avoiding these pitfalls in the future.
Create a plan for when you’ll ship what to whom
Companies should make it easy to browse products online by organizing their catalogs in an intuitive way that allows people to find what they’re looking for quickly and effortlessly. Take this blog post on advice for creating great user experiences with ecommerce sites, for example. If you have all of your wares neatly organized into product categories according to how prospective clients might think about buying them, they’ll be more likely to find the right goods faster than if they were searching through a disorganized mess where everything is labeled “Free” or isn’t properly presented.
Tie freebies to paid offerings
The most effective way of dealing with the problem is by making sure that everybody understands what it takes to qualify for “free” things. Customers who don’t want to spend any money shouldn’t expect anything and those who dig deeper and buy something (no matter how small) should be allowed to take part in whatever promotional offers are being offered at the moment. This will motivate people to actively seek out your products because they’ll have a chance of getting something extra instead of passively waiting around for you to decide whether or not they’re worthy of your freebies. Offer discounts on other items, waive shipping costs, give additional points towards their next orders or even offer better product recommendations just as long as it’s relevant to what they’re doing in the moment.
Increase exposure with paid ads
If you’ve already tried the suggestions above and still notice that your “freebies” aren’t generating any revenue (or are taking up all of your time), then it might be time to take a good look at how often people are purchasing them. If there is an obvious drop in activity, it means that you need to find ways of giving these giveaways more exposure; remember, if nobody knows about them, nobody will care about them! You can do this by promoting free items directly on your website or through other marketing mediums like social media. Also, getting creative with your offers will hopefully be enough to entice buyers who may have otherwise missed them.
Look into affiliate marketing
There are a lot of products that give affiliates a percentage of the profits when they send customers to their site, or assign credits based on how much a person spends. If you already have an established business with plenty of established affiliates, it might be wise to try out this type of system for generating revenue from your “freebies”. It can be tough to find good affiliates but if you pay them well and establish clear expectations ahead of time, there’s nothing stopping them from doing all the work for you! You should also avoid making sudden changes to free items unless absolutely necessary because doing so will only alienate current affiliates and hurt your brand image.