Giveaways
In addition to the attention-grabbing strategies, another very powerful incentive cuts across all customer types to attract the attention of your target customer: the word free. This is music to consumers' ears, and definitely gets their attention. In fact, according to a study by Jupiter Communications and NFO Interactive in 1999, 45% of online purchasers claimed that they made their first purchase or transaction at a site because of a promotion.
These were the most popular promotions mentioned in the survey:
Free shipping (58%)
Limited-time discount (35%)
Free gift with purchase (33%)
Free coupons (32%)
Free sweepstakes (24%)
Notice that the word free appears in four of the five popular promotions. First-time buyers are looking for free shipping, free products, cash, and rebates. But do these giveaways pay off, or do they just attract those who take but don't buy?
PC Data CEO Ann Stephens says that previous research by PC Data Online showed that 89% of web surfing time is spent in search of free information, entertainment, or prizes. That's a significant number, and one attention-getting strategy that shouldn't be ignored.
Stuart Brand, creator of the Whole Earth Catalog, once said, "Information wants to be free." Online merchants have been using a variation of this idea for years: Give something free, and then sell something. This also is known on the Net as the Yoda Principle: "Give, then take." Although this idea is not new to commerce (businesses have been using loss leaders for decades), it can also be the right formula for the Internet.
Freebies also provide an opportunity to cross-promote with other non-competing web stores. You can offer one of your products or a compatible service free to other web stores. For example, if a site sells auto accessories and you sell insurance products, you might offer a free comparison insurance quote. Or if a site sells running shoes, you might offer a free pair of athletic socks with each purchase. The trick here is to get the customer from the other site to visit your site to get the free product or service. Your partner's web store gets the sale, and you get additional visitors.