Promotional giveaways – can free stuff create valuable customers?

freestuff

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 😀

New online business models can bring success

newbusinessmodels

When it comes to online business, nothing quite has the success of online casinos like Leo Vegas and 888 Casino, but what if anything can we learn from their business models?

The answer is, a lot.

The casinos continually face challenges in the form of fast evolving competition, an unclear and shifting legal and regulatory landscape, and customers who often show little brand loyalty. In such a turbulent environment, how can a brand expect to survive and indeed to grow its reach?

The answer is not simple, but you can join us for a detailed look at how these business models from the edge can be applied to mainstream applications. We speak with John Grover and David Hargreaves at Citadel Centre, Milton Keynes, on the 21st May 2016. If you would like to join us let your group leader know at your next local BNI meeting!