Businesses often use incentives to get customers to come back, shop again and become loyal patrons, but it doesn’t always work. An incentive must provide something the customer truly values; if it isn’t worth their time, it won’t be a priority—and neither will returning to the business.
However, if companies use strategic “freebies” to deliver real value up front in a personalized way, they can create brand loyalty and repeat business. Below, 15 members of Forbes Agency Council share smart ways companies can leverage free products and services to demonstrate their deep appreciation for customers’ business and convince them to become loyal patrons in the process.
Forbes Agency Council members explore the best ways to offer free products and services to build customer loyalty.
Photos courtesy of the individual members.
1. Make It Relevant, Timely And Genuine
It’s important for the free product or service to be relevant to the customer’s current needs or past purchases and offered at the right time. It also has to feel genuine—as if the company is coming from a place of thanking them for their loyalty—otherwise, it can come across as a cheesy way to get more business. – Jared Floyd, Ajax Creative
2. Have An Amazing Product And Offer Rewards
It starts with having an amazing product. If the product can’t stand on its own, a loyalty program with perks won’t work. Assuming you have that, I’ve seen loyalty programs work really well by offering points that are redeemable at checkout for buying a certain item and the ability to get discounts if a certain amount is spent in a year. By far, rewards programs have been the most solid loyalty programs I’ve seen. – Dawn Sinkule, Digital Dawn
3. Offer Perks To Both New And Repeat Customers
When building the customer experience, I don’t think there is a binary decision to be made—offer perks to both new and repeat customers. Then, provide both expected and unexpected incentives to build relationships with repeat customers. Relationships are nurtured constantly, so taking time to show appreciation at all times is a fast track to building authentic loyalty. – Brandon Scott, Ten Adams
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4. Make Sure There Are No Strings Attached
The right way to offer a free product or service is to give it away for the right reasons. If the client feels that strings are attached, they could question the integrity of the whole relationship. The client needs to know that we are on their team and always looking out for their best interest. People buy from people they know, like and trust. If we give in this manner, then loyalty will follow. – Cedrick Webb, Smart Digital
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5. Add Value By Offering Samples Of New Products
Always value-add—don’t discount; your prices should be fair and reasonable for the products and services offered. Perks and benefits should fit the needs and wants of the customer. Offering samples of new products is always a great way to “give” while also promoting your products to those who already trust you. – Chris Siebeneck, SEO Werkz
6. Offer All New Customer Promotions To Loyalists Too
First, make sure that anything you offer to new customers is offered to repeat customers! Repeat customers are the goal, yet companies create new customer promotions that aren’t available to loyalists. Second, segment customers according to their needs rather than past behaviors. Pick a reward for each segment that reflects their needs. They will love it and feel as if you know them well. – Tom Spitale, Impact
7. Gamify Your Customer Loyalty Program
Well-thought-out gamification is a great approach. Las Vegas really gets this right; high-end casinos and hotels such as MGM Grand and Wynn have figured out ways to make people feel good while losing money by comping rooms, shows and meals at multiple properties and offering other chances to win. Whenever that loyalty card comes out, points are accrued and pleasant surprises follow. Everybody feels like a VIP. – Scott Harkey, OH Partners
8. Keep Your Biggest Advocates Happy With Tokens Of Appreciation
Whether they’re referring new customers or offering company testimonials, you always want to keep your loyal customers happy because they are usually your biggest advocates. The smallest token of appreciation can go a long way for brands and companies that give thanks for customer loyalty. – Jessica Kopach, The JKO Agency
9. Set The Stage With An Effective And Consistent Cadence Of Offers
If you commit to a loyalty program, it’s important to determine the cadence at the onset. If you come out with offer after offer, then it’s what your customers will come to expect, and you’ll need to keep up with it. On the other hand, if you don’t typically offer incentives, you can use them effectively on a seasonal or quarterly basis or for special occasions such as anniversaries. – Michelle Abdow, Market Mentors, LLC
10. Create A Value-Add Referral Program
This is part of the conversion phase of the marketing and sales funnel, and it is the most overlooked. Every brand has thousands of dollars from attentive and active fans waiting to be mined in their email and SMS lists. Take time to create a referral program that gives consumers what they want, and focus on value-add. Free products are never successful long-term; it is better to offer added value. – Vix Reitano, Agency 6B
11. Give Them Something That Shows How Good You Are At What You Do
You can’t give someone free stuff to stay your customer forever. At the beginning of the relationship—whether it’s when they make their first purchase, give you their email or something similar—give them something that provides value while showing that you’re very good at what you do. This is the correct approach because it gives you a real chance to show them how good you are at what you do. – Danny Star, Website Depot
12. Offer Customers Something That Normally Can’t Be Bought
I would not necessarily reward loyal customers with free products or services. Instead, I would prefer to offer something that normally can’t be bought. While these things don’t have to involve too much effort or extra cost, offering them can create a much stronger connection with the customer. It makes them feel special. In addition, the original product or service does not lose its perceived value. – Markus Hetzenegger, NYBA Media GmbH
13. Express Clear Appreciation With Personalized Gifts
When offering perks, make it clear that you are expressing your appreciation for each customer. Personalized gifts, such as special birthday messages with discounts and other bonuses, can go a long way toward building loyal customers. These perks encourage clients to stick with you in the long run. – Hannah Trivette, NUVEW Web Solutions
14. Use A Tiered Reward System
Offering a free product or service through a tiered reward system is the best way to gain long-term customer loyalty. Just as casinos have loyalty cards to reward those who spend more, companies can take a similar approach to give back to their customers who spend. A rewards program keeps customers coming back (versus going to a competitor) because they’ll be rewarded for spending with you over time. – Tony Pec, Y Not You Media
15. Promote Your Loyalty Plan Using Digital Methods
The easiest way is the easiest way, which likely means using an app or something virtual/online. People won’t always have “punch cards” or physical media with them, but they will have their phones or access to digital media. Promote your loyalty plan using methods that people will actually use and take advantage of. – David Kley, Web Design and Company
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Author: Expert Panel®, Forbes Councils Member
