Jun 1, 2009
Free Can Come Back to Buy You II
So how’s that free thing going for businesses in today’s economic downturn? Since the original blog was posted, here are some updates:
Singer Allison Lynn offers CD discounts to multiple purchases.
1) Debbie Fox of Fox Fine Jewelry prompted the first blog about giving away necklaces for Valentine’s Day to gift givers who recently had lost their job or home. Partnering with other jewelers in Ventura, CA, nearly 5,000 necklaces were donated. Results included customer loyalty and the creation of Share Ring, through which participating retailers can sell a Hope, Faith and Unity necklace for $19.99, with all proceeds going to Points of Light.
2) Similarly, Greg Tidwell of Bell Jewelers in Murfreesboro, TN, gave away 100 pearl necklaces to tornado victims as an outward sign of hope and recovery.
3) Allison Lynn, a Canadian-based Gospel music artist, offers discounts on multiple CD purchases, as well as a free MP3 to people who sign up for her newsletter. “Our audiences appreciate the discounts, and it’s definitely resulted in increased sales,” says Lynn.
4) Jet Blue announced a year-end extension of its Promise Program, which offers a full refund to anyone who purchased a ticket and subsequently lost a job.
On the other hand, businesses must be sure that “any discounting strategy aligns with their product/service and its key audiences, and that such a strategy will serve in the long-term to enhance the brand reputation,” points out Mary Beth West of Mary Beth West Consulting in Maryville, TN. (In the interest of full disclosure, I hired Mary Beth years ago for a corporate communications position). “It comes down to the value proposition of the brand. It’s critical to weigh all the factors before making a decision on what form that approach takes.” All good points.
Hi Susan, love your emails and insights!
This is smart business. In today’s market, free and/or extra services will help companies survive as the public spends less money and is more selective who they spend it with.
Free is a good business strategy so long as you know what to give away, when, and to whom. The tricky part is balancing between goodwill and “goon”-will. Like you mentioned, its all about relationships and community building, which is something I truly believe in.