At the end of a Dallas Mavericks victory, ushers are handing out Taco Bueno coupons for a free taco. Last week Oscar Mayer company took out a full page ad in USA Today and gave people an opportunity to go online and get a coupon for a package of Oscar Mayer Jumbo Beef Franks–a give-away worth over $1,000,000. A few months ago Denny’s gave away a free Grand Slam breakfast to everyone who was in their store.
The real question is, "Does free work?"
Obviously companies are using this promotion as a springboard to get new customers. The thought behind most of the promotions is that if you try my product you will love it and come back. In most situations the acquisition cost for a new customer could be high and promotion give-aways appear to be an inexpensive and effective way to promote their products.
Again does it work?
For me, sort of. With the three examples I gave, I do keep the Taco Bueno Coupons and actually give them to someone who uses them all the time. The Oscar Mayer Franks promotion I would have signed up for, but because of my travel schedule, I missed the deadline. But I wouldn’t have changed the brand I like. The Denny’s Grand Slam free breakfast was a hit with me. First of all, the PR value on this promotion alone was off the charts. The lines were out the door and I am sure whatever the cost was the return was ten-fold. Way to go Denny’s.
I am sure all of us get coupons in the mail for free products. A recent example for me is I get Tom Thumb (local grocery store) coupons and every few weeks get a number of free products. They are a brand I have never heard of but I will go to the store and look for the brand which is typically called "Select" brand. Even though I won’t buy that product moving forward this promotion is very successful. The reason is these products are tough to find which means I am spending more time walking around looking for stuff and because I am an impulse shopper I probably buy $20 worth of extra stuff while I am looking for a free $1.50 can of pasta sauce.
- Does free work for you?
- Does it change your behavior?
- Does it depend on the products?
- What promotion does work for you?
I look forward to reading your comments.
Rachel Campbell says:
I got food poisoning from a popular fast food chain 7 years ago and stopped eating there for good (even though I really liked their food beforehand). Recently they have started doing “freebie Wednesdays”…and I have to admit, I have now eaten there twice…all you have to do is buy a drink and you get a sandwich for free…next week is their newest, most expensive sandwich for free!
And one of our local grocery stores does a Mystery $.01 coupon and puts something on sale for a penny…Spaghetti sauce, toilet paper…a different item each week.
I think, overall, not only is it incredible marketing, but with the way the economy is today, people take comfort in knowing that retail establishments and food chains are cutting breaks here and there…I know I sure enjoy it (as does the rest of my co-workers! Wednesday are our favorite days
)
Jeff Adler says:
The City of Rockville (Maryland) offers free concerts during the summer. They are scheduled every Wednesday from around 12 noon to 1:30pm and Thursdays from 6-8pm. I am not sure it costs the City much if anything to put on these concerts. They are not bringing Bruce Springsteen — they tend to be local bands taking advantage of the opportunity for publicity and practice in front of an audience. By scheduling around lunch and dinner, the many restaurants in close proximity get a huge business boost. Additionally, for the lunch concerts, they sell tents to vendors — who sell things like farmers’ market produce, plants, flowers, and bread.
When done in this context, free seems like a winning hand for all involved.
Rick Johnson says:
Just like anything else free works for some and doesn’t for others. There are skeptics that will say, “nothing is free.” Me included, but if the “free” item is something you are interested in…it may be worth checking out.
My favorite freebie is the website http://www.mrexcel.com (Bill Jelen). Bill is an Excel guru (Microsoft MVP) and he does a daily Excel Podcast (free) and gives chapters away free of his Excel books (via email in PDF). Also every year he does a March Madness contest where you enter your picks into an Excel spreadsheet that can be downloaded on his site…at the end he gives away prizes to the top three.
I think freebies have worked well for Bill. In the end companies are developing goodwill and getting the exposure they need to drive their profits up. This is only one factor in the marketing mix though…you can not put all your eggs in one basket.
Have a great weekend…I hope I wasn’t too wordy, but I find this to be a topic of interest.
Taylor Halberstam says:
I think that giving things out for free doesn’t really do much. Sure I may take advantage of it, but will it make me a loyal customer, that is doubtful. I do like some community free outdoor concerts and it is a nice thing to offer for the community. But the question remains is it a good marketing practice, I still say no. I think people devalue the product if it is given out for free.
Malcolm Williamson says:
Free venue outdoor concerts are always something great. One of the few exceptions where free is good.
Glad you mentioned that.
Malcolm Williamson says:
Free, but not for me.
Free does work and is one of the most effective means of advertising.
Most people are innately cheap and love something for free.
For example, I stopped at my favorite Greek restaurant the other day after work to pick up some food to bring home and noticed that the Ben and Jerry’s next door had a line 50 people long. Actually there were probably more than 50. It caught my attention, so I asked one of the people in line what was going on. They told me that Ben and Jerry’s gives out a free scoop once per month. I asked if it was really worth it to wait 30 mins or longer to get a free scoop of ice cream? Why not just come back tomorrow and spend 3 bucks and get it in 10 seconds? He said, ’cause it’s free’.
Bottom line, there are two type of people in this world.
1. The types who live out of scarcity and they are the one’s who think that life is waiting to rip them off and take everything they have in a New York minute. So they hang onto everything with white knuckles hoping that everything will go their way. They generally don’t tip, refuse to pay for service and get upset when they aren’t treated appropriately.
2. Types who live out of abundance and know that even if the s**t hits the fan, all will work out and they will bounce back even stronger the next time. They don’t wait 45 mins for a free scoop (their time is far more valuable). They pay for service, tip big and buy what they want without a coupon. They are happy to give the shirt off their back, because they know there are plenty of shirts to replace the one off of their back.
Soup to nuts, free works for segment 1 and not so well for segment 2.
The world is largely made up of segment 1. Unfortunately.
Jim Steber says:
Just this weekend the subject of free came up. Everyone at the family gathering was discussing In Bev, since we all live in the St. Louis area. The question was; what beer did everyone like the best since everyone talks about leaving Anheuser Busch because of loss of loyalty. The general consensus was arrived at very easily. The best beer in the world is “Free”.
poorva deshmukh manohar says:
Does free work…I think free products or services will work if marketers put some thought into who they are sending out the freebies to…it is all about targeted marketing even for freebies. For instance, if I get coupons or free gift cards from one of my favorite stores, I will almost certainly go there and end up buying a lot more in the process….however, if I get freebies for products I don’t care about, the coupons will make their way to my recycling bin.
Seanjjordan says:
I think free works IF there’s a lasting value to it. The problem with free samples of consumables is that they’re a short-term strategy. Inducing people to trial is a smart marketing move (and much more effective than advertising), but, like anything, that trial needs to be tempered with good planning. I actually think 25 cent promotions or 99 cent promotions are better for consumables since they place some value on the bargain of the item. BOGO (Buy One, Get One) is also a very effective promotional tool.
Free works for services somewhat, but again, I think the value that’s created is really key. I hate listening to free webinars and reading free marketing materials only to find them soliciting business for the REAL content. Free works much better in situations where the value is being communicated and it’s clear that the free service is just as good as the real thing.
Pierre says:
I believe FREE works, but for many only in the short-term. If the product/ service is not in your consideration set you’re not likely to continue with it beyond the freebie. I wanted to take advantage of the recent KFC freebie, but disengaged when I heard it was causing them all sorts of problems. But irrespective of the marketing disaster, did the offer somehow increase my visitation rate thereafter? Nope. And why, because K(FRIED)C is not really something I eat that often.
Jennifer says:
Speaking of KFC, I printed out the free KFC coupon, but did not get there to use before the deadline. However, the next time I went to KFC, I did try the grilled chicken. But I did not go there specifically to try the new chicken; we were going there anyway.
Suzanne says:
I keep my eyes open for free stuff/offers to use if I am ALREADY planning to go somewhere. Last night, I had plans for dinner w/a friend and searched for a free appetizer coupon online to use at that restaurant. It takes extra effort to plan ahead, but it pays off. Unfortunately for companies, I don’t make plans based on where the free offers are or feel it leads me to repeat after redeeming. It is a nice feeling to know companies are willing to help out customers who choose them among other options.
Rhonda Ellis says:
Well, FREE definitely gets my attention. So, task #1 is complete — you have my attention. But, where it goes from there is not a given. FREE only works with me if it is something I want/have an interest in to begin with or would be more beneficial to me than “taxing”. So, for example, if I have to drive to the other side of town that I never have reason to go to otherwise in order get to the nearest location to cash in my FREE coupon…..not worth it.
I guess you could sum it all up by saying that FREE gets my attention BUT my general rule of thumb after that is the higher the benefit as opposed to the effort you have to go thru to get it pretty much decides whether or not I consider it “worth it”.
Mark Crumbley says:
For certain categories/products, I am totally brand loyal and wouldn’t think of switching. I toss out or give away coupons for those products.
For any other product, I would definitely consider using the coupon as long as I felt that the quality might be acceptable – not necessarily the best, but at least acceptable. If I had a good experience, I’d consider future purchases even without a coupon. A bad experience would mean I’d never try it again.
For restaurants, I’d only keep and use a coupon for a place that I: 1) already like and would go back to anyway or 2) am already inclined to try. If I didn’t like the place, or had a bad experience with the free meal, I’d never consider going again.
So, for me, free does work. But only to try – not necessarily to buy later without a good first experience.
Kmat says:
Free will initially work for me, as long as it’s something I’m interested in. In order to keep me coming back, there must be a qualilty componment in the mix. If the product doesn’t taste good, look good, sound good, have a benefit for me – I probably won’t return and spend future monies there…..
Patricia says:
Free works for me – I will definitely look for offers related to products/places we plan to use/visit. To have a repeat effect, we need to have a good experience.
McDonalds is offering free coffee every Monday until Aug 3rd in order to get feedback on their Iced and Hot Mochas. The free offer worked in this case – we drove through on Monday to try it out. I didn’t really like the coffee that much, but the Southwest Grilled Chicken salad I ordered was quite tasty and I will probably order that next time I am eating at McDonalds.
Shank says:
Free works if it is a product and category I’m already interested in/like. the best benefits marketers get from giving me a free coupon or a big discount is to remind me to try a product/place I’ve sort of forgotten about. that’s when it is the most motivating. Secondly to try a new product/place. But for me, even if it is free, if a behavior change of some sort is required, I won’t go for it. That might be a win win for marketers because they are not giving away something for free when I’m not likely to become a future user anyway.
Louis Ygartua says:
I liked Malcolm’s two categories and unfortunately I feel am in the first and free works pretty well for me. I’d like to become more of an abundance person.
Alice says:
Free works for a product or service I already like or to try something new that sounds interesting. Free does not influence me to try a product I have tried before and don’t particularly like or had a poor service experience with.
Gwen says:
Free usually only works for me if it is a brand or product that I already enjoy. For instance, on 7/11/09, 7-11 gave away free slurpees. Being a slurpee-fan, I took part by getting my free Coke Slurpee. Lucky for me, 7-11s are conveniently located because even though I am a fan, I would not have driven out of my way to obtain this free product.
With KFC, I was not able to get the free grilled chicken coupon off the web. Yet, because I wanted to try it, I did so as a paying customer.
McDonalds free mocha promotion will be one that I will not try…but, I am not a coffee drinker.
Lovejoy says:
If everyone shared my Grandmother’s philosophy, free would definitely work. She was all about coupons! If she was going to buy cereal for instance, and she had a coupon for a certain one other than her own, she would always give it a try. “Who knows, I might like it” she would say. She did the same thing with pretty much everything. Sometimes she liked the new product and sometimes she didn’t. She did happen to stumble upon some good finds pretty often. She knew exactly how to work the double and triple coupon days as well. Most of the time she got the “try me” items for practically nothing.
To me, I believe the free stuff…such as the free taco coupons…DO work. I would be willing to bet that each person that goes into Taco Bueno with a coupon for a free taco ends up purchasing something else to go along with that taco. Also, more than likely, the free coupon is what got them there in the first place. So, maybe they lost a buck on the taco, but they made it up 4 times with the tag-along purchase. Even if it’s just a drink. Fast food places probably make most of their money off soda. You could almost buy a 12 pack of Cokes at the grocery store for what you’d pay for a large cup at a fast food restaurant. Seems like a good strategy to me.
Jennifer Stocks says:
Sometimes a free offer will prompt me to buy a different brand, but usually I stick with the brands I like. If it is easy to redeem that makes a big difference. If I have to go to a website and fill out a form, that is less likely to happen than if I can just walk into a store and get the free item. Also, coupons just don’t seem to work for me. I have a stack of them, but I am usually rushing out to the store as soon as I have a free minute and almost always leave my coupons behind. I am more likely to respond to an in-store price reduction (or B1G1 free), than to redeem a coupon.
Tom Hjelm says:
FREE always works. This is confirmed in promotion research we’ve done in the past. And I use my Taco Bueno free coupons too.
Merrill Dubrow says:
Tom,
On behalf of the Dallas Mavericks and Taco Bueno THANK YOU! I know they look at ROI on those promotions very carefully and wonder if the economy has increased those numbers dramatically. My sense is they have!
Thanks.
Merrill
Frank Wyman says:
As for “free” … free definitely works for me as long as there are no hidden costs (e.g. long lines to get into Denny’s and actually EAT the free meal, required sign ups and/or trials (time share free “vacations” were famous for such), etc) and the free thing is actually something I hold value for (i.e. I wouldn’t eat some types of food even IF they are given to me free).
In the end it is truly rare that there are no hidden costs and the freebie is something I value (i.e. there really, truly is no free lunch!).
Jonathan says:
I will typically try something if it is free and I don’t have to go out of my way for it. In order for it to change my behavior it has to have some sort of compelling benefit over my current product or service.
Free campaigns that do not typically work for me are services that are free for a limited time when you subscribe such as premium cable channels or credit card services.
Susan H says:
I don’t usually take advantage of free offers because i never have the coupon with me at the right time and place. Poor organization on my part. However, the new McD give away is the type that will work with me – no coupon, no effort on my part, just drive thru. Of course, it has to be a product i’m interested in. If the McD give away was a burger, I wouldn’t do it.
L S says:
Just today I was offered $60 in free gas if I would try a service for 30 days…would only be out $1 if I cancelled within that time. Seems like a great deal but I’m always skeptical that there is a catch – or even if it’s legit, that I’ll forget to cancel and will end up paying for a service I really don’t want.
As far as free food samples are concerned, count me in!
SPA says:
For things that interest me -
Free stuff is very often cumbersome to get in terms of time/money or both (out-of-stock/coupons to print and remember, blackout dates, download speed etc.) even if it is for something you occasionally use.
Things that do not interest me -
Promotions for things that do not interest me just get ignored outright. The few ways they get my attention are: while I am walking in the mall and get accosted or when things get delivered at my door w/Newspaper.
Dixie says:
Free works but only if it’s convenient; otherwise it’s not really free, right? I did take advantage of the recent KFC freebie but haven’t been back since – just don’t do FF that often. Does it change my behavior? If I like it well enough, yes I think it does and it gives me the warm fuzzies to be rewarded for my loyalty. Unfortunately, many freebies are only offered to new customers – that kind of ticks me off.
Merrill Dubrow says:
8/26/2009
MOTEL 6 OFFERS FREE ROOMS TO 3 ROCK BANDS:
Rock bands are notorious for trashing hotel rooms.
But in a branding world turned upside down by both the recession and the explosion of online social media, Motel 6 on Wednesday will unveil plans to dole out free rooms to a handful of up-and-coming touring rock bands as a marketing tool to attract younger customers.
The promotion comes less than a year after another blue-collar brand, Denny’s, rolled out a new late-night format and began offering freebie meals to some emerging rock bands in a bid to boost its image with younger diners.
It’s all about getting young, cash-strapped bands to go online and chat and give a nod on Twitter and Facebook to the hotel that gives them a free place to crash for the night or the restaurant that doles out free eats.
For older brands with modest marketing budgets that are looking for a quick image fix among twentysomething consumers, it’s less about in-your-face marketing and more about cozying up to things such as music that most interest young folks.
“Instead of marketing to them, they’re asking to be part of the community,” says Jennifer Aaker, a Stanford University marketing professor. “If they want to be part of the conversation, they have to authentically engage that group.”
Rock music affiliation — even at a grass-roots level — is widely regarded as an especially effective way to do that. “If the bands place our logo on their websites and thank us on stage, that will increase awareness among younger consumers,” says Jeff Palmer, vice president of marketing at Motel 6.
For Motel 6, it’s about making the brand hipper to young customers. The recession has hit even the budget hotel brands. Motel 6’s occupancy rate is down 5% to 7% over the past year, says Palmer. “If they stay with us young, maybe they’ll remain brand loyal.”
The initial Motel 6 promo offers six weeks of free lodging to three soon-to-tour bands selected by Primary Wave Music, the music publisher and marketer that created the promotion. “We’re not telling them what to tweet or post on their sites,” says Devin Lasker, partner at Primary Wave. “But since they’re getting free rooms, I imagine they’ll have positive things to say.”
The lead singer of one of the bands says that staying at Motel 6 during his band’s upcoming 60-date tour will be luxurious compared with past tours. “It’s pretty cool to have a place to sleep that isn’t on someone’s floor — or in the van,” says 23-year-old Alex Roy, lead singer of the band Sparks the Rescue.
Last year, Denny’s also adopted some emerging rock bands to which it gave free food for three months in exchange for positive social-media nods.
“If you want to get the 16- to 24-year-old demographic,” says Mark Chmiel, chief marketing officer at Denny’s, “the No. 1 connection is entertainment. That’s music, video games and social media.”
Merrill Dubrow says:
Free tacos Saturday at Taco Bell
From 6 p.m.-midnight Saturday, Taco Bell will celebrate Halloween and the 2009 Major League Baseball World Series by giving away free tacos.
Participating restaurants will give one free Black Jack Taco to each guest until supplies last.
You don’t need to wear a costume or a baseball uniform.
The beef taco is wrapped in a crunchy black taco shell and seasoned with pepper jack sauce for some added kick. It’s part of the chain’s value menu for a limited time.
Be sure to call ahead to make sure your closest Taco Bell is taking part in the giveaway.