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Forum - Offering something for free to your customers
Offering something for free to your customers
Tue, 16/03/2010 - 09:17 — seanprice
I have been thinking lately about writing a blog post over at my personal site (http://seanprice.co.uk) but keep holding off for other topics that may pop into my head. I have been thinking lately about how often and how well offering something for free to your clients or potential clients can often lead to greater benefits - have you found in the past that doing great work for free has brought you more business and if so what have you done and has it worked out well?
One thing I started lately for my business is every tuesday over on twitter we offer free tech/computer advice so users on twitter can tweet us (http://twitter.com/iboxsecurity) and can ask us for advice, help, support and general questions about anything IT related so for example whats the best graphics card to get, newer CPU, where should I host my website, how do I remove X virus and how do I install X program.... People world wide can ask us anything for free either by sending us a tweet or by a direct message and we aim to reply as soon as possible.
We have found offering this has been successful so far with many people sending us private messages related to how to resolve issues with their PC's at home and work.
What are your previous attempts of offering something for FREE?
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I think FREE is a tricky one in today’s climate. To offer something for FREE seems to be an entry ticket these days as opposed to a differentiator. We run free seminars and offer an hour’s free coaching as it’s a great way for someone to experience what we offer. This works well for us in the service industry as we are selling the invisible and people need to experience it to value it. The most important thing is to truly understand what you are giving for free, the value that is associated with it and more importantly if your business can afford it. If its part of your sales strategy than it can be a fantastic way of feeding new potential clients into a pipeline but you must ask yourself the question "what are my potential clients getting from this" Our next free seminar is next week http://6stepsstroud.eventbrite.com
Free trials are a vital part of so many sales processes. How else can people test you out?
At BHP we've always put a lot of effort into these trials. For example, we are currently recruiting law firm partners for our Law Donut website in each part of the UK. So we create a customised website for each interested firm, with their branding and their fee-earners sprinkled through the website, so they can see with their own eyes how the website works and so they can invite their clients to give feedback on this legal resource as well. We help each law firm to conduct the trial, discussing their objectives and suggesting a questionnaire to fit those objectives. Of course, we know before the trial begins that the feedback will be very positive and that the trials work, so it is a win-win for all concerned, it greatly speeds up the law firm's decision to get involved.
I'd say try it for a bit longer. I think you have to be committed to it when you offer something for free.
It's a way of enhancing your reputation and making people aware of what you can give them. Sometimes people won't take up more services, but plenty will. If you do a good job, then you will be generating masses of goodwill. This should encourage potential clients to become actual clients.
To see if it is successful, consider it as simply another marketing tool. Work out your ROI, but use the imputed cost of your time, the opportunity cost. (Plus associated costs for materials etc of course, but these should be minimal.)
Our accountancy section http://www.twdaccounts.co.uk has done this for a major franchisor, offering a free year's service to new franchisees. There was a cost as the accounts team worked for nothing, but effectively their bill has been paid for by the marketing budget. There is a little bit of drop out (plus some natural wastage as unfortunately not everyone makes it as a small business). Even so, the second year is where the dividend is paid. We get a great income, with a really great ROI as a result.
A client once asked me to work for free which really put me on the spot. Asking around my business mentors, the general consensus was to decline as there was no promise of future work. I acted on the advice and in hindsight perhaps I shouldn't have as I have received no work from the client since!
I can see the value of OFFERING something for free and that it will lead to future work. My initial 'getting to know you' meeting is non chargeable and in general is worth the investment of my time as it converts to business.
Glad it is working for you.
First of a "getting to know you" and initial consultation and meeting is always free from my point of view so that is fine.
As for doing free work I dont mean perform a project or vast amount of work for free but always offer something for free which can vary vastly on your industry and what you do. I have found that with many clients I have offered them something for free be it service or product and have 9 times out of 10 received plenty of work from them in the future as they see you arent all about making the quick quid here and there but are genuinely interested in their business and helping them do better.
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