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THE FREE GIFT EFFECT

Understand Your Buyer > How To Convert > The Free Gift Effect

 

What is it?

Offering a “free gift” with a purchase can encourage a client to buy because they feel like they’re getting a “better deal”.

Why does it work?

It works because we all want value for money and to feel like we’ve had a lot more value than we’ve paid for.  When we buy something and get a “free gift”, often that gift is no related or is essentially worthless to us, but the principle of getting “something for nothing” can drive us to buy.

 

 

How can you use it?

There are a couple of ways:

Free information products

Offering free information is a “zero cost” thing to do, has a high perceived value and is scalable. It also helps to create more trust and respect in the relationship you have with your clients.

Free physical products

In a physical product world, offering something for “free” that costs you money can seem counter intuitive.

But.

If you could increase your conversions by spending another £1/£5/£10 on a “free gift” it will have more impact than discounting by that amount.

As an added bonus, the “free gift” could be merchandise branded with your name, or products another company provide to you for free, to promote their business.

Free support

Offering ongoing “support” for a time period after purchase can encourage a buyer as they feel that you genuinely care about them and their purchase. If the client does call on you for support it’s your chance to shine and perhaps sell them something else. If they don’t then you’ve lost nothing. Win. Win.

Free “upgrade”

If you have a higher priced offering, then rather than discount it, you can offer your clients a “free upgrade” to that offer for the price of the offering they were going to buy.

For example you sell umbrellas- one is a basic £5 model  and one is a £10 deluxe model.

In this scenario you could offer a “free upgrade” to the deluxe model for all purchases before XYZ date. This allows you to close the client, still make a margin (albeit a lesser one) and create word of mouth referral for your time limited deal. (see the Scarcity effect)

 


 

Like this kind of stuff? Want more?

Buy the book!

 

84 ways to reach, engage and convert people to buy using psychology, science and common sense.

In the book we cover:

How people work – 18 factors that affect client behaviour.

Selling Communication Basics – 12 ways to communicate more clearly.

How to get attention – 18 ways to stand out and be noticed.

How to engage – 27 ways to engage potential buyers.

How to convert – 10 ways to convert prospects to buyers.

Everything in the book works and is backed by psychology, science, common sense and my own testing.

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