Back in 2012, when Little Jack Marketing was just a scrappy online marketing underdog trying to make a name for itself, we wrote a post about why giving away free stuff just makes marketing sense. At the time we knew it was a good post, but what we didn’t know was that it was going to be one of our most-read posts over the next 4 years. Clearly, businesses have a continued interest in learning how to use freemiums to improve their customer acquisition strategies.
But the Internet has come a long way in 4 years. Do freemiums still work in 2016?
You bet they do.
Consider one statistic: freemium apps account for as much as 98% of worldwide Google Play revenue. Other app platforms report similar numbers. It turns out, customers are just much more likely to pay for app add-ons once they’ve had a chance to try an app for free, rather than commit to paying up-front for an app they’re unfamiliar with.
According to one article by the Harvard Business Review:
“Because free features are a potent marketing tool, the [freemium] model allows a new venture to scale up and attract a user base without expending resources on costly ad campaigns or a traditional sales force.”
Translation: giving something away for free, assuming your users actually find it valuable, has the power to actually turn them into one of your marketing channels—they not only come on board, but also tend to tell other potential customers about the great value you’re offering, bringing them on board too.
The truth is, stakes are higher than ever for online marketers. Customers are increasingly short on time and attention, and there are more companies than ever vying for their attention. Just making a promise of value to the customer isn’t enough anymore. Letting them try something right away instead, and actually experience the value for themselves, can give your business the edge it needs in customer acquisition.
Offering something to your customers for free shows:
- That you’re willing to part with value in order to win that customer over, and thus, that you’re humble and know the value of each customer.
- That you’re confident enough in the quality of your product that you can afford to give a part of it away for free.
- That you’ve got nothing to hide, because you’re sure that once the customer gets to sample your value proposition, he or she will be inspired to purchase your full product.
If you’re wondering what to give away for free, there are many options to consider, from physical products, to trial subscriptions, to white papers and other informational products. For help on how to best utilize freemiums in your unique business model, get in touch with Little Jack Marketing to set up a consultation.