There's no such thing as a free lunch nationwide. In the business world, the word "free" seems to be unwelcome. Coupled with the fact that performance is getting worse year by year, traditional marketing is facing enormous challenges and pressure. New brands entering newly developed markets often make a big splash on their opening day, creating a storm of attention across the city. But then, business becomes quiet and mediocre. For merchants with a certain degree of fame, their marketing path also becomes increasingly narrow, relying solely on promotions - this "oxygen tank" - to sustain survival. The current situation is that without discounts, there will be no consumption. Yet, there are still some lucky merchants who receive customer patronage. After shopping, these customers disappear into the crowd, never looking back, and they definitely won't come to the store again. It seems that traditional marketing is coming to an end. When traditional marketing is at its wits' end, the emergence of free marketing brings about a new scene akin to finding a bright village after a dark willow.
1. Free matches light up the lamp of consumption
When a computer crashes, it needs to be restarted; when the business light goes out, it needs to be relit. Can free fire light up a lamp? Let's look at a case. A hair salon opened in the suburbs where there were already five salons. Previously, the shop operated traditionally, employing several barbers whose wages were based on commissions from each transaction. In fact, the conditions of the shops and the skills of the barbers were all similar, so this particular shop had average business and performance. To improve business, the boss tried many promotions like discounts and coupons, but with little effect. Then the boss adopted the free marketing model and devised a free strategy: any customer who got a haircut could enjoy a free photo session for large stickers once. The photos would bear the shop’s name and the barber’s name. As a result, customers who finished their hairstyles immediately captured the perfect moment in the photos, thus winning deep affection from the customers, especially among the student clientele, leading to a 30% increase in performance. The free model transformed non-consumers into consumers, lighting up the lamp of consumption with the free matchstick.
In Fujian enterprises, the shoe industry accounts for a significant portion. I suggest, especially at the beginning of summer during the rainy season, that they could provide branded shoe covers. This not only prevents customers from suffering from wet shoes but also keeps rainwater out, avoiding issues like glue separation and post-sale troubles. This is truly a win-win situation. The free model brings numerous advantages to businesses, but how can we do well in the free model? We need to pay attention to the following two points:
1. Relevance: Free gifts must be related to the product. Don’t connect unrelated things together, as it won’t have an effect.
2. Sequence: Should the gift come before or after the product? It depends on the industry. Fast-moving consumer goods generally have the gift first and the product after, while durable goods are the opposite.
2. The free value diminishes the price sensitivity of the product
It is well known that the essence of marketing is to sell identical products differently. Why can identical products be sold differently, apart from the brand? Since they are identical, it means the hardware cannot be changed; the only thing that can change is the advantage of being free. Many female friends have probably used Shengmei. Originally, Shengmei was just a couple's store, but within a few short years, it evolved into a national chain. Its model created a myth in the hairpin industry. One key point was the free hair combing service. In the original Shengmei store, one additional item was added – stools. Any Shengmei customer who purchased a product could enjoy lifelong free hair combing services provided by professional barbers carefully styling your hair. After ten minutes of styling, beauty-loving girls instantly turned into "golden phoenixes." Therefore, an ordinary hairpin went from a few yuan to dozens or even hundreds of yuan. Beauty-loving young women spend generously for beauty. In fact, the hairpins are all the same. Why does the price differ so much? The fundamental reason is that Shengmei provides a free model, reducing the customer's sensitivity to price. When the ability to bear prices stagnates, the fastest solution is to offer a free model. Taking myself as an example, recently, I wanted to attend training elsewhere. Due to time constraints and transportation inconvenience, I didn’t want to run around. Searching online, I found the "Mobile Business School," which is essentially a hard drive full of lectures by teachers. Upon asking the price, I was greatly surprised. Normally, a 500G hard drive costs over 400 yuan, but the hard drive with materials burned onto it cost 1700 yuan, nearly four times the price. The hard drive is still a hard drive, the only difference being the free provision of teacher lectures. Clearly, the advantage of being free can increase the value of the product while simultaneously reducing the customer's sensitivity to price.
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