Why Do Brands Giveaway Free Samples? The Power of Freebies and Free Stuff

You might be curious as to WHY a company who's #1 objective is to make money would give away products for free. Free I say, as in no cost, nothing, nada, zip, zilch... well you get the point.  There are many reasons why companies do this. Let's discuss a few:

  • They're able to connect with the customer in a positive way.
  • It's a direct and no frills form of advertising.
  • It can often be cheaper than traditional advertising.
  • No gamble for the customer, consumption can occur without a price barrier.
  • Customer loyalty aka lifetime value.

Think back to a time in your life, perhaps a county fair, when a vendor gave you a free sample of ice cream. Were you angry or delighted? Yeah, that's what we thought. It's really hard to be in a bad mood when someone gives you something for free. If you're like us, then tasty and delicious treats are that much better. Positive Connection.

Billions of dollars are spent each year by companies trying to convince you to try their products. Consumer good companies like: Kraft, General Mills, Procter & Gamble, Unilever, Colgate realize that it's often more effective to simply give potential customers their products.

Free Samples can be much more powerful than sales, discounts or other promotions. Without a cost to the consumer, people will try products (in a positive mood) without having to carve out a piece of the weekly budget to do so.

When companies aim to attract new customers, they're not looking to sell you a product that one time. They want you to continue to shop and consume their products again and again for as long as possible. As morbid as it is, they'd like you to do so for the rest of your life. In business and marketing this is known as Lifetime Value. If you become a customer for the next 10 years and spends thousands of dollars, then it's worth it for a company to spends thousands of dollars marketing to you. If then can get you for the low cost of a free product sample, even better.

Cosmetic companies known the power of free samples as well. It's nearly impossible to walk through a mall or department store without getting a spray of perfume or cologne. Brand loyalty can be very strong in the cosmetic world as many people don't like to "experiment" with their physical appear on a daily basis and find comfort in products that make them feel beautiful and confident. 

The morale of the story is Free Samples for You = $$$$ for companies. So indulge and don't feel bad about taking a Free Samples next time a brand offers you a chance to try their product. Go nuts! Not only do they want you try their products, they're counting on it.

Happy sampling and remember the best things in life are FREE! 

By: Emily Banks | Sep. 10, 2014


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