Why Should Every Shopify Store Offer FREE Gifts: For E-Commerce

"Buy two and get one free!"

"Purchase $500 and receive a $100 reward!"

Don't these sound like very decent deals? We come across such offers virtually every day, but we rarely consider why we find freebies so enticing. However, the question is how giving out free samples and items may assist your company.

To comprehend this, you must first comprehend the many forms of free and how they might assist in increasing sales in your company.

1. Free trials

Netflix, for example, offers a free month of service with the ability to cancel at any time. Customers adore this deal since it allows them to watch movies and series for free without having to pay for their membership. Most people pay for their subscription after the free trial ends in order to continue viewing TV and movies.

2. BOGO

This is the most common sort of free when you buy a thing and get the same product or a lower-priced product for free. Consumers are enthralled by the prospect of receiving twice as much for half the price, and they wind up purchasing far more than they intended. This increases revenue while also bringing in new and potential clients to your company.

3. Terms & Conditions Apply

When a product is given to you for free, it generally comes with a catch that is so appealing that the buyer cannot refuse it. This kind of 'free' operates on the basis of commitment. Customers are frequently more likely to spend money and buy items they don't need to get the goods once they've been attracted by the 'free' present.

4. The freemium model

Freemium is an internet-based business model in which basic services are supplied for free, but extra premium features that might significantly improve the consumers' experience are charged for. This form of free is common in games like Candy Crush Saga, Fortnite, and Temple Run, among others, where the game is free to play but specific features may be paid for a better experience.

5. Giveaways

Giveaways may sometimes be incredibly beneficial to a company. Customers are enticed to subscribe with free items in exchange for a subscription, and they comply because they know they will be rewarded. The subscription is a terrific way to persuade potential consumers to connect with the company and, as a result, expand the company's reach. Influencers on Instagram frequently use this strategy to expand their following.

Why it’s so attractive

For starters, the free sample product is something that your consumers do not have to pay for. It costs them nothing, and the prospect of obtaining something for nothing makes people more inclined to spend money in order to acquire the free present, simply because they get more than they paid for.

People shift their behavior patterns and are more likely to cooperate when something free comes along, according to Dan in his book 'Predictably Irrational.' Free isn't merely a price indication. It's a really strong emotional reaction that causes individuals to bring home worthless keychains and buy jeans that are too tight just so they can receive an additional pair for free.

Essentially, when buyers pay for something, they carefully analyze the risks in order to avoid any unhappiness with the goods. When it comes to free items, however, they have no expectations. Because the possibility of disappointment and lack of value for money is avoided, free products are thought to have a higher worth.

Furthermore, when utilized appropriately, free goods and services might result in significant sales for your company. Customers are frequently enticed by companies like Amazon to add nearly twice as much or more to their basket before checking out so that delivery may be done for free. This sort of approach frequently pervades the whole business model of the organization.

The psychology of free

The whole attractiveness of free is based on the notion of reciprocity, in which one side feels obligated to repay the favor by cooperating with the other. Reciprocity, according to Ariely, is a powerful impulse. As a result, when a company does something kind for its consumers, they feel obligated to do something nice for them in return.

Your customers will appreciate anything that is free and has a solid cause. This is why food samples are passed throughout the aisles of supermarkets. Customers are aware that taking a free sample will lead to them purchasing the entire box or package, which they are willing to do if they love the samples supplied.

Similarly, buyers feel rewarded when they are given free goods in exchange for paying a particular amount of money. The 'free present' is viewed as a reward for spending more than they intended to. This also explains why the 'Buy one, get one free deal is so popular with customers across many industries.

Reverse-Psychology

With an increasingly skeptical public, it's no surprise that the term "free" has begun to lose its allure. The reason for this is that when a thing is offered to them for free, people begin to doubt its value and worth. What may be the product's flaw? What's the point of giving it away? What are the conditions and terms? Is there a catch to the free product? The consumer's attitude changes to one of suspicion toward the free product.

Excessive advertising and flaws have taken away the thrill of receiving a free gift. Even when firms seek to give out free things to promote their business, they are chastised. This is why many businesses strive to make their offers as attractive as possible in order to get customers to do business with them.

As a result, it's also critical that the free items have a compelling purpose to be free so that people are drawn to the offer rather than skeptical.

To put it in a nutshell

Customers are important to every business and play an important role in its success. Giving out free items not only enhances customers' perceptions of the company but also acts as a wonderful approach to recruiting new customers through the reciprocity principle.

Getting something for almost nothing provokes a feeling in the customer; it just feels better. Free items are perceived as rewards and, in most situations, have a favorable impact on customers' perceptions of your company, encouraging loyalty among current customers while also attracting potential and new customers.