Promotional giveaways – can free stuff create valuable customers?


Free stuff. It’s everywhere! From free postage offers to no deposit free spins on online slots, you can’t seem to move without being offered some kind of no-cost incentive to sign up, subscribe to emails or otherwise give up your information in return for freebies. but why do advertisers do it? And does it bring real value in the long term?

The short answer is, there is no short answer! The only way to discover whether there is inherent value in giving something away for free is to try it for yourself. Many business sectors will benefit from doing periodic outreach and acquisition of new customers through some kind of free offer, but it comes with some notable pitfalls.

Depending on the promotion in question, it may well result in a large amount of abuse. Customers will try to register under different names, with different addresses, or otherwise try to trick the system to receive more than the intended amount of free stuff. In addition to this, the customer details you acquire may well contain a large proportion of fake details, or worse details of unwilling neighbours or friends who will tag your emails as spam and cause problems for deliverability. The final question that needs to be answered is what is the long term customer value of customers acquired though free giveaway promotions? Lower value, yes almost certainly, but will it still make business sense? Only one way to find out we’re afraid!

So by all means give it a shot, try it out for yourself and see how you get on. If you have any experiences to report, please share them in the comments 😀