The economy is tough and many consumers are struggling to make ends meet. In fact, the tough economy is one of the top reasons why people spend much time price shopping extensively and use as many coupons as they can. For a business finding the right promotional niche to give consumers to bring them back time and again can be difficult. Customer loyalty during tough economic times can vary depending on the savings the consumer can obtain. This is predominantly because family budgets are tight and gas prices as well as the cost of goods is high.
Businesses and consumers are struggling to stay afloat, and while it may seem that giving away free items is a bit counterproductive to making money, there is nothing farther from the truth.
While there are companies who scarcely give away anything, this is certainly not the norm of the business world. Companies that provide excellent deals and free give aways to consumers, tend to be the more popular establishments and retail outlets today. This is an important acknowledgement because keeping consumers happy, keeps them coming back.
Most retail and consumer oriented businesses will tell you that giving consumers and shoppers cash incentives or give aways can be an important sales technique that spurs their customers into an ongoing loyalty to their establishment. People are always looking for a good deal, and in today’s economy the savvy shopper is looking to be all that more diligent in saving money for other things.
Overall, companies should handle free giveaways by first making an economic analysis that shows that the give away will spur consumers to action and that the cost is worth the investment.
One additional note, contrary to some popular belief an advertising campaign can actually cost more than does a give away campaign. Businesses can at times save more money by drawing in the consumer with a give away than with an extensive advertising campaign.This the consumer is already there, they tend to buy more if they feel they are saving more. This is an important business factor when deciding where to spend promotional dollars. Coupons and giveaways act as a great consumer incentive.
While it is true that giveaways should be advertised, the amount spent on the advertising of the giveaway, is usually much smaller than the highly expensive costs of being noticed with an ad that promotes without a give away. That is because consumers are geared towards looking at ads for savings, coupons and giveaways, not just regular advertising.