FREE — Everyone’s Favorite Four Letter “F” Word…

How the Power of Free Can Boost Your Revenues

By: iCopywriter Blogger, Kimberly Crossland

Think giving stuff away for free means losing out on revenues? Think again.

A study done by Neuromarketing asked 2,500 shoppers what drove them to finalize a purchase online. The resounding theme from their top answers was that something was offered for free. And that is not surprising considering Amazon found the same result in a recent internal test. Here, they offered free shipping to several markets. The only market that did not rise quickly was France, where shipping was offered at only a reduced rate, but not for free.

The word has a powerful effect on consumers online, and one that companies should not ignore. After all, the difference between dramatically increasing sales by spending a few extra pennies on shipping, and losing customers to the competition is astounding.

How can your business get on the free bandwagon to boost revenues instead of incur higher costs? Here are a few tips.

  • Offer free shipping – We had to say it, especially after Amazon proved its importance in their internal study. Free shipping, for most products, is a no brainer. However, if your company ships a product that has a ridiculously high cost, such as heavy gym equipment, save the free shipping offer for special events like Cyber Monday where your competition is fierce.
  • Have a free return policy – Customers are far more likely to make a purchase online if they know they can send it back without a fee should they be unhappy with the product once it arrives. Zappos has made a killing providing this service and your company can too.
  • Give a free bonus – Can your product be upgraded in any way? Or do you have an add on that will make your customer happier that you can throw in for free? Mary Kay, a cosmetic company, trains some of their beauty consultants to offer a free gift after their customers reach a certain spending amount. This has proven to work for many consultants who have customers that spend just a little bit more to get their free gift. Often times, the cost of the free gift is lower than the profits the consultant earned just by giving something away.

The results that can be seen from offering something for free are not only higher revenues, but also better customer service levels, which encourage repeat customers and in turn boost revenues that much higher still.

What is your company offering for free?

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