The concept of giving away free products and services has been around for a long time, but it has become increasingly popular in recent years as businesses seek new ways to attract and retain customers. Some industries have even built their entire business models around the idea of giving away free things. In this article, we will explore three industries that rely heavily on giving away free products and services: the financial, casino, and health industries.
These industries have recognized the power of giving away free products and services as a marketing strategy to attract and retain customers. They use these freebies to differentiate themselves from their competitors and create brand loyalty among their customers. While there are certainly benefits to giving away free things, there are also some potential downsides that businesses must consider. In this article, we will explore both the advantages and disadvantages of giving away free things and how these industries have used this marketing strategy to their advantage.
Financial Industry
The financial industry has long used free products and services as a way to attract and retain customers. Free financial products include things like credit cards with no annual fees, free checking accounts, and free financial planning services. These products are often used as a way to differentiate one financial institution from another and to create brand loyalty among customers.
By offering free financial products, financial institutions are able to attract customers who may be hesitant to pay for these services. For example, a consumer who is on a tight budget may be reluctant to pay an annual fee for a credit card, but may be more willing to sign up for a credit card with no annual fee. Once a customer is attracted by the free product, the financial institution can then work to retain that customer by providing excellent customer service and offering additional financial products and services.
Examples of free financial products offered by different companies include:
- Chase Bank offers a Chase Total Checking account with no monthly service fee if certain requirements are met, such as having direct deposits or maintaining a minimum daily balance.
- American Express offers a variety of credit cards with no annual fee, including the Blue Cash Everyday Card and the SimplyCash Plus Business Credit Card.
- Charles Schwab offers a free financial planning service to help customers create and maintain a financial plan.
Overall, the financial industry has recognized the power of offering free products and services to attract and retain customers, and has used this strategy to great effect. By providing customers with valuable financial products and services at no cost, financial institutions are able to build brand loyalty and create long-term relationships with their customers.
Casino Industry
The casino industry is perhaps the most well-known example of an industry that relies heavily on giving away free products and services to attract and retain customers. In the casino industry, freebies can take many forms, such as free drinks, free hotel rooms, and even free gambling credits. These freebies are used to entice customers to visit a particular casino and to encourage them to stay and gamble for longer periods of time.
One of the primary ways that freebies help casinos attract and retain customers is by creating a sense of excitement and anticipation. For example, a customer who receives a free hotel room or a free meal voucher is likely to feel more excited about their visit to the casino and more likely to stay and gamble for longer periods of time. Additionally, these freebies can create a sense of loyalty among customers, as they feel like the casino is giving back to them and appreciating their business.
Examples of freebies offered by different casinos include:
- Free drinks while gambling at the casino
- Free hotel rooms for frequent visitors
- Free gambling credits for new players who sign up for a player’s club membership
One notable example of a casino that offers freebies to attract and retain customers is Bovada. Bovada offers a variety of bonuses and promotions, including a Bovada bonus code that can be used to claim free gambling credits or other rewards. These bonuses and promotions help to create a sense of excitement and anticipation among customers, and encourage them to visit Bovada and gamble for longer periods of time.
Overall, the casino industry has long recognized the power of giving away free products and services to attract and retain customers. By offering freebies such as free drinks, free hotel rooms, and free gambling credits, casinos are able to create a sense of excitement and loyalty among their customers, and keep them coming back for more.
Health Industry
The health industry is another example of an industry that relies heavily on giving away free products and services to attract and retain customers. Free health-related products and services can include things like free gym memberships, free health screenings, and free consultations with healthcare professionals. These free products and services are used to help health-related businesses differentiate themselves from their competitors and create brand loyalty among their customers.
One of the primary ways that free health-related products and services help businesses attract and retain customers is by providing value to customers and demonstrating a commitment to their health and well-being. For example, a gym that offers a free trial membership or a free personal training session is able to demonstrate the value of their services to potential customers and encourage them to sign up for a full membership. Additionally, these free products and services can create a sense of loyalty among customers, as they feel like the business is invested in their health and well-being.
Examples of free health-related products and services offered by different companies include:
- Anytime Fitness offers a free seven-day trial membership to new customers to encourage them to try out the gym’s facilities and services.
- Walgreens offers free health screenings for blood pressure, cholesterol, and blood glucose levels at select locations to encourage customers to monitor their health.
- Doctors and healthcare providers often offer free consultations to new patients to encourage them to establish a relationship with the provider and receive ongoing care.
Overall, the health industry has recognized the power of giving away free products and services to attract and retain customers. By providing customers with valuable health-related products and services at no cost, health-related businesses are able to build brand loyalty and create long-term relationships with their customers.
Pros and Cons of Giving Away Free Things
Giving away free products and services can be a powerful marketing tool for businesses in a variety of industries, but it also comes with its own set of advantages and disadvantages.
Advantages of Giving Away Free Things:
Attracting and retaining customers: Offering free products and services can help businesses attract new customers who may be hesitant to pay for these products or services. It can also help to retain existing customers by creating a sense of loyalty and appreciation.
Building brand loyalty: Offering free products and services can create a sense of goodwill and appreciation among customers, which can help to build brand loyalty over time. Customers who feel valued and appreciated are more likely to continue doing business with a company.
Generating positive word-of-mouth: When customers receive free products and services, they are often more likely to share their positive experiences with others, which can generate positive word-of-mouth and help to attract new customers.
Disadvantages of Giving Away Free Things:
Cost: Offering free products and services can be expensive for businesses, especially if they are providing these items on a regular basis. The cost of offering free products and services must be carefully balanced against the potential benefits.
Attracting customers who are only interested in freebies: Some customers may be attracted to a business solely for the free products and services they offer, and may not have a genuine interest in the business’s core offerings. These customers are unlikely to become long-term, loyal customers.
Diluting the value of paid products and services: Offering too many free products and services can dilute the perceived value of paid products and services, making it difficult for businesses to charge premium prices for their core offerings.
Overall, giving away free products and services can be a powerful marketing tool for businesses in a variety of industries, but it is important to carefully weigh the potential benefits against the potential costs and downsides. By striking the right balance between offering free products and services and maintaining the perceived value of paid offerings, businesses can use this marketing strategy to attract and retain customers, build brand loyalty, and generate positive word-of-mouth.
Conclusion
In conclusion, this article explored how some industries rely on giving away free products and services as a marketing strategy to attract and retain customers. Specifically, we looked at the financial, casino, and health industries and how they use freebies to create brand loyalty and differentiate themselves from their competitors.
In the financial industry, free products like credit cards with no annual fees and free checking accounts help attract and retain customers. In the casino industry, freebies like free drinks, hotel rooms, and gambling credits help create excitement and loyalty among customers. In the health industry, free products and services like gym memberships and health screenings help businesses demonstrate their value and commitment to customers’ health and well-being.
The article also discussed the pros and cons of giving away free products and services, including the advantages of attracting and retaining customers, building brand loyalty, and generating positive word-of-mouth, as well as the disadvantages of cost, attracting customers who are only interested in freebies, and diluting the value of paid products and services.
Overall, giving away free products and services can be a powerful marketing tool for businesses, but it is important to carefully balance the costs and benefits and maintain the perceived value of paid offerings. By doing so, businesses in a variety of industries can use this strategy to attract and retain customers, build brand loyalty, and generate positive word-of-mouth.
