Free.
A four letter word that holds immense power with consumers and has deep roots in psychological value. We as consumers are attracted to it, yet we are also weary of the potential catch that can be associated with receiving something of value for absolutely nothing in return. While us marketers have to be cautious with our use of free, if used correctly, the word can have enormous converting power.
If you're interested in how to properly use the power of free, here's what we're talking about...
Within a test environment, subjects were given the option to choose between a Lindt chocolate truffle for 15 cents or a Hershey's Kiss for a penny. The results showed a drastic preference towards the Lindt chocolate because the test subjects viewed it as a higher quality chocolate, and thus worthy of the higher price. But what happened when each chocolate offer was reduced by one cent, making the Hershey's Kiss free?
“The verdict: “free” captures our attention in a powerful way. The Lindt item truffle, by all measures, a higher value. But when asked to choose between a free Hershey’s Kiss or a dramatically discounted Lindt truffle, most people took the free item, even though it wasn’t the best deal.”
Before going any further, we highly recommend reading ConversionXL's article for more research results on the power of free offerings and for examples of companies that have successfully implemented free offerings within their core business model.
How to Use the Word “Free” in Your Marketing Without Losing Credibility Via Crazy Egg
“Free is awesome. Use it. Say it. Do it. Offer it. Love it. However, don’t let things get out of control. When free spirals into a free-for-all of cheesy marketing messages, unvalidated value, and unproven claims, you begin to lose credibility.”
Providing a service or product for free is bound to attract consumers, but if used incorrectly it can have detrimental effects on your brand image and credibility.
Take note, there are strategies to better implement your use of free. For example, consumers are weary of an offer being too good to be true and typically assume that there is a catch. However, explaining why the offer is free is a great way to communicate your offer in a more trustworthy way. Check out Neil Patel's article to learn more strategies on how to properly use free within your marketing strategy.
The Power of Free Via forEntrepreneurs
“The trick to doing Free or Freemium business models right is to ensure that the product/service that you are giving away free is of very high value to the customer, which should result in both high customer satisfaction and a likelihood that they will tell others about your product/service, leading to viral effects.”
It may be beneficial to take a step back and rethink your company's strategy when it comes to acquiring new customers. While offering a product or service for free may seem strange or outright impossible, implementing a free promotional strategy may be just what you need to entice a lead to convert.
A great example of this tactic is HubSpot's WebSiteGrader. This free to use service evaluates your company's websites and provides a score out of 100, showing where your website needs improvement. Not receiving a perfect score entices the user to follow through and click the CTA for a free 30 day free trial of their marketing software, and therefore generating a lead for HubSpot. Take a look at David Skok's article that details how free offerings can drastically change the way your company does business.
Infographics are always a great way to visualize the statistics behind a subject, and in this case, the power of free shipping. Did you know that shoppers typically spend, on average, 30 percent more when free shipping is included. Furthermore, offering free shipping can be more effective than offering a large price discount, while costing your company less. Take a look at this infographic to learn more.
“The moment you understand that free is a special price, that people think about differently than all other prices, you can then think differently on how to implement and use it.”
Dan Ariely does a great job explaining research studies and their results on the subject of free. He then details the psychological effects of monetary loss and how it is nonlinear in regards to the monetary value increases. In other words, losing 10 dollars is bad, but losing 20 dollars is not twice as bad as losing the former.
Give this video a watch!
“The best way to get someone’s attention is to be generous. Giving your work away for free is something I’ve talked about for years. But it also comes with its share of challenges. In this week’s episode of The Portfolio Life my co-host Andy Traub and I talk about the obstacles of “free” and offer practical tips on how to overcome them.”
If podcasts are more your thing, check out this podcast on the power of free with Jeff Goins. Jeff does an outstanding job covering the topic, while also using an example from his own business model and how it provides him leads.
Give it a listen.
Offering something of value for free is just one of many lead generation tips for acquiring new customers. Now that you understand the value of a free, it's our turn to provide our free offer to you. Check out our 30 Lead Generation Tips to learn how to create offers that are impossible to ignore, website optimization tips using A/B testing, and much more!