Planet Small Business
  • Home
  • Start
    StartShow More
    3 Marketing Strategies to Keep in Mind While Scaling Your Small Business
    May 10, 2023
    Happy Small Business Month, everyone! Here’s your chance to win $5,000!
    May 10, 2023
    4 Steps to Leverage Your Imposter Syndrome Into an Opportunity
    April 20, 2023
    Business name
    How Jiffy Lube Won the Business Name Game
    April 14, 2023
    Small business basics
    Need funding for your small business?
    March 26, 2023
  • Run
    RunShow More
    How Any Small Businesses Can Turbocharge Their SEO Easily and Quickly (Yes, We Mean You!)
    How Any Small Businesses Can Turbocharge Their SEO Easily and Quickly (Yes, We Mean You!)
    February 23, 2023
    Using Your iPhone to Make Rockstar Quality Small Business Videos (Yes, Even You Can Do It!)
    Using Your iPhone to Make Rockstar Quality Small Business Videos (Yes, Even You Can Do It!)
    February 9, 2023
    4 Ways to Handle That Difficult Client
    4 Ways to Handle That Difficult Client
    December 28, 2022
    Top 10 signs you are a good boss
    December 21, 2022
    Ideas
    How to legally protect your intellectual property
    December 17, 2022
  • Grow
    GrowShow More
    Make More Money This Summer
    Make More Money This Summer
    June 1, 2023
    5 ways retailers can break through the clutter on Amazon and make it into a customer’s cart
    5 ways retailers can break through the clutter on Amazon and make it into a customer’s cart
    March 6, 2023
    Sectors With The Most Opportunity to Scale a Business in 2023
    February 28, 2023
    How Any Small Businesses Can Turbocharge Their SEO Easily and Quickly (Yes, We Mean You!)
    How Any Small Businesses Can Turbocharge Their SEO Easily and Quickly (Yes, We Mean You!)
    February 23, 2023
    10-Digital-Marketing-Tips-for-Small-Businesses
    The Best Digital Marketing Tricks for Small Business
    February 7, 2023
  • Learn
    LearnShow More
    ChatGPT Says it is not going to destroy copywriters or the copywriting profession
    ChatGPT Says it is not going to destroy copywriters or the copywriting profession
    February 3, 2023
    ChatGPT Gives 4 Reasons Why It’s “Not Going to Kill Off Freelance Writers”
    ChatGPT Gives 4 Reasons Why It’s “Not Going to Kill Off Freelance Writers”
    February 2, 2023
    The Importance of a Good Bio
    The Importance of a Good Bio
    July 29, 2022
    Market Research on the Cheap
    Market Research on the Cheap
    May 11, 2022
    Intellectual property
    How to Legally Protect Your Intellectual Property
    May 11, 2022
0

No products in the cart.

Planet Small Business
  • Home
  • Start
  • Run
  • Grow
  • Learn
Search
  • Home
  • Start
  • Run
  • Grow
  • Learn
Have an existing account? Sign In
Follow US
Featured

The magic word that will explode your business

Steve Strauss
Steve Strauss  - Editor January 1, 2023
Share
5 Min Read
putting coin in the jar with plant
SHARE

Do you want to create new customers? Do you want to make sure your current customers stick around? Do you want people to love your business? Of course you do. So the question then is – how do you do it? I have a one-word answer for you:

Free.

Studies show that there is no more powerful word in advertising than ‘free,’ and, it turns out, the same is true in both customer acquisition and retention. Offering both current and potential customers alike something extra, something for nothing, is the sort of value-added bonanza that creates and cements relationships.

Consider all of the ways that offering customers extras at no extra cost, and especially something they did not expect to get for free, can help your business:

Why Free is the Small Business Magic Word

1. It creates interest: Let’s say you are a new business and you want to attract attention. What is the best way? Social media? Pay-per-click? Maybe, but just maybe the answer is to offer something people want for free. That will surely capture their attention.

This sort of loss-leader strategy is tried and true and works because:

  • It allows people to try out a product or business with no commitment
  • It gives them a chance to get a feel for the goods
  • It makes them feel like they are getting a deal

2. It gives people a reason to switch: While customer loyalty is not what it once was, it is still real; people tend to find products and businesses they like and stick with them. So you have to give people a reason to 1) leave their comfort zone, and 2) choose you when you do.

Freebies do just that.

First, because there is no commitment involved, offering something for nothing makes it easy for the potential customer to check you out. And second, free creates a good vibe. As you really do not get a second chance to make a great first impression, giving something for nothing helps foster that great first impression.

3. Free makes current customers want to stay your customers: This may be the most important reason of all. We all know we are supposed to appreciate and reward our best customers, but how do you do that, really? Maybe the most powerful way is to give them extra products or services at no extra cost. It is especially useful if you give your customers something they need and are not expecting to get for free.

Let’s say you are a landscaper. You might offer to build a raised garden bed for some of your best clients. The hairdresser can refuse payment the next time her best customer comes in. The virtual assistant can send a $0 invoice after the next project. Do you see how powerful this is? It is a very real and tangible way to show your appreciation for your clientele, and do so in a way that resonates in this economy.

4. Free generates sales: When you offer value-added extras at no extra price to people, they tend to want to thank you in return. And they do that by buying more from you. Those ‘buy 10 and get 1 free’ cards do just that. First, it makes people want to fill up the card, and second, it makes people want to come back and start again after they get the free meal, car wash, whatever.

5. It is great branding: Offering new and old customers alike something extra at no cost has long-term ramifications as well. It reinforces the image that shopping with you is smart, that you offer real value, and that you sincerely appreciate their business. Is there a better brand to have than that?

What can you give away? The answer is, what would your customers appreciate? The dentist can give away a free exam. The florist can give a free bouquet. And the columnist? He can give away a great tip:

Free really works.

Sign Up For Our Newsletter

Get the latest updates, tips, and tools via email from Planet Small Business.
Steve Strauss January 1, 2023
Share this Article
Facebook Twitter Pinterest LinkedIn Email Print
Avatar photo
Posted by Steve Strauss Editor
Follow:
Senior small business columnist at USA TODAY and author of 15 books, including The Small Business Bible, Steve is your host here at PlanetSmallBusiness.com.
Previous Article Shot of two young entrepreneurs sitting together at office desk. Man showing something on clipboard to woman in office. Quiz: Is your small business as good (or bad) as you think?
Next Article Your big idea! Your big idea!
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

You Might Also Like

Make More Money This Summer
Grow

Make More Money This Summer

June 1, 2023
Start

3 Marketing Strategies to Keep in Mind While Scaling Your Small Business

May 10, 2023
Featured

Happy Small Business Month, everyone! Here’s your chance to win $5,000!

May 10, 2023
Featured

4 Steps to Leverage Your Imposter Syndrome Into an Opportunity

April 20, 2023
Follow US

© 2023 PlanetSmallBusiness.com

  • Terms of Use
  • Privacy
  • Contact Us
Welcome Back!

Sign in to your account

Lost your password?