Free Giveaways Work to Increase Revenues Sky High

Jan 14, 2015

Everybody loves free stuff, and the word “free” attracts consumers to go out of their way to win or attain free things. For marketing best practices, offering free giveaways to prospects and customers is a good business strategy that can result in new and repeat customers.

Free giveaways allow the consumers to try a product or service risk-free that they would have never thought of purchasing and might recognize its value and continue to purchase what you offer.

Also, to some consumers, a principle called the “Law of Reciprocity” comes into effect when they are given free products or services and feel obligation to return the favor by continuing to purchase from you. It is a natural psychological effect that makes them want to return the favor as a way of expressing their thanks.

Remember to know your total customer value before giving free products or services. To safely offer freebies know your “total customer value” ( a.k.a “lifetime customer value”), the profit you will receive from customers over the total length of the relationship. Suppose your business had an average “Total Customer Value” of $3,000. The potential future sales from spending $100, $200, $300 in freebies shouldn’t stop you if you look at the $3,000 gain in profits.

Free Giveaway Case Studies

There are many types of businesses that offer effective free giveaways to attract new customers. Below are several businesses that demonstrate how they use freebies to build their business.

Case Study #1 – Health/Fitness Club

Instead of spending a fortune on traditional advertising methods, a health club gave away six-week free trial memberships at health food stores and sporting retailers. A majority made a conversion to paying membership and became repeating customers.

Case Study #2 – Merchant Account

An online merchant account company gave a free trial merchant account for businesses to try out their services. Merchant’s were able to start accepting credit and debit card payments and increased their sales by receiving different forms of payment. Merchants were so satisfied with its ease of use and service that they signed up for the full service merchant account. eMerchantBroker.com can help you start accepting credit and debit card charges. Small or high-risk businesses can see the potential profits by opening a merchant account.

Case Study #3 – Optometrist

An optometrist mailed postcards to prospects offering free eye exams to inactive patients. Included in the eye exams were: dry eye test, glaucoma test, visual acuity test, and cataract test, which made customers aware of the different eye problems. The optometrist grossed an additional $10,000 in less than a week and appointments were made back to back.

In conclusion, by incorporating free giveaways in your marketing strategy, you can see great returns. For business owners, brainstorm what you can offer as free-trials that customers would consider valuable. Make sure to give quick explanations on your freebies to help them understand your offer. Lastly, remember to compute your total customer value so you’ll know how much to invest in attaining new customers.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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