Categories: Resource

How Your Startup Can Generate Customer Loyalty Through Giveaways

Free customer loyalty should form an essential part of the marketing strategy for your startup as giveaways can attract customers and encourage brand loyalty, which is particularly important for companies in competitive sectors. Explore how major companies use giveaways to drive long-term profits through creative marketing strategies.

Using free offers to entice new customers

Companies can encourage increased customer spending with the offer of free products. Macy’s offers a gift of perfume from top brands with a $150 beauty or fragrance purchase. Customers are more inclined to spend extra to qualify for a gift, a major influence on their behavior. Free offers can be found in a wide range of sectors. In the highly competitive iGaming sector, free offers are a tried and tested mechanism to attract customers who enjoy slot games.

Free spins allow customers to try slot games without deposit or wagering requirements, using funds other than their own. Ongoing promotions like Prize Pinball, providing customers with a daily chance to win a jackpot, help build customer loyalty.

Reward schemes

You can also incorporate freebies with a customer loyalty reward scheme. Starbucks Rewards lets you earn free coffee, get refills, and receive a birthday reward. The loyalty scheme is, of course, free to join with customers earning points on every purchase. Adding partners like Delta Air Lines allows customers to connect loyalty accounts and access perks like Delta SkyMiles.

By collaborating with other companies, Starbucks is tapping into FOMO, the fear of missing out, as an important marketing strategy for companies. Incidentally, in its SkyMiles program, Delta Air Lines stipulates that there is no expiry date on air miles, this ensures its customers are content, and from a business perspective the airline benefits from long and fruitful customer loyalty.

Free trials

You can get creative with free offers from established companies without always giving away products for free. Walmart, for example, offers its customers a free 30-day trial to its subscription service Walmart+. With a wide range of perks including a Paramount+ subscription, free delivery from your local store, and free returns from your home, Walmart is banking on customers being so impressed by the service they decide to continue membership at $12.95 a month when the trial ends.

Cashback

Cashback drives customer loyalty by incentivizing purchases with the chance to earn cash rewards. Kroger offers cash back along with digital coupons and weekly deals for a variety of essentials and treats. In the hyper-competitive retail sector, a range of offers is required to stay ahead of the game.

Hopefully, this article will give you some useful ideas for free promotions for your startup. Free offers attract customers, while ongoing promotions encourage brand loyalty without high costs; the rewards justify the effort.

Sameer
Sameer is a writer, entrepreneur and investor. He is passionate about inspiring entrepreneurs and women in business, telling great startup stories, providing readers with actionable insights on startup fundraising, startup marketing and startup non-obviousnesses and generally ranting on things that he thinks should be ranting about all while hoping to impress upon them to bet on themselves (as entrepreneurs) and bet on others (as investors or potential board members or executives or managers) who are really betting on themselves but need the motivation of someone else’s endorsement to get there.

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