The Psychological Effects of Free Promotional Products

A significant number of companies invest heavily in freebies. They come in various forms – from the more traditional items like mugs and shirts to innovative giveaways like bamboo flash drives. There are simple small tokens, and there are those that cost a hefty amount.

But have you ever wondered if these giveaways really make an impact? Do the people who receive them develop a genuine liking for the company? Are they worth the amount of investment businesses pour into them?

So, what is the basis for the deliberate effort of companies to shower customers and non-customers with gifts?

Reasoning

One of the most apparent reasons is the fact that people generally feel happy whenever they receive a gift. It does not really matter if the item is cheap or expensive. If someone receives something, especially if it is unexpected, the act evokes positive feelings.

In the case of businesses, this is a good thing. It may not necessarily lead to acquiring new customers or increased sales immediately, but it opens the door for new relationships. In fact, more than chasing after “transactions”, the latest buzzword in companies now is the term “relationships.”

Relationships

This makes sense. Goods may be exchanged in a typical transaction, and both parties benefit. But there is no deliberate effort on the company’s part to ensure that the customer will buy again in the future.

With relationships, it is not just about the one-time sale. Businesses want to go the extra mile so that they can increase the probability that the customer will go back in the future to buy more from the company after they sell. 

To do this, the company tries to build a deeper connection with its consumers. One way to do this is through promotional giveaways. Freebies add that magic element of surprise for the customer. Everyone loves receiving gifts as people appreciate it when they are acknowledged.

Every company hopes to sustain the joy upon receiving the freebies and translate that to positive feelings towards the company. When customers are happy and they have a good perception of the business, they will return the favour in the future by buying more from them.

Visibility

Another important element here is that most customers keep and use the items in their everyday life. What does this mean? When clients use the freebies, they are constantly reminded about your company. This ensures that you are on the top of their minds for a while.

This is a form of free advertising with very minimal effort and cost for the company. All you need to do is spend for the items one time and give them to clients. After that, whenever they use the baseball cap, jacket, or tumbler, they would always see your company logo, name, or slogan.

First step

In addition, giveaways serve as a hook for potential customers who have not tried your products or services yet. 

A concrete example is if you are selling coffee. Most likely, people already have their preferred brands of coffee. If you are a new player, this space is such a difficult market to penetrate as most customers have already gotten used to their favourite coffee.

So it is implausible that they would spend money to try something new. Customers have already done that in the past and have made a choice. 

But if you would give them a free taste, there would be no risk for them. After all, the drink is free. In their mind, if they do not like it, it didn’t cost them a cent anyway, so all is good. At least they got a chance to explore.

However, if they find out that they really like the new coffee better than their old brand, it will be a great day for them. They got to taste it at zero cost. Since they like it, there is a higher chance of purchasing the new brand.

This is the power of freebies.

Now imagine if you add a tumbler with a new purchase of coffee? Aside from the excitement of a discovery, a gift adds positive emotions to the purchase. Aside from the purchased item, the tumbler will ensure that the new customer will not forget the name and logo of their new coffee brand. It is a win-win overall.

The key here is to be creative with the kind of promotional items you and your company will give away as gifts. Here are some questions to think about:

• What is your budget for your freebies?
• What item would make the most impact for consumers to relate the item with your company, products, and services?
• What does your typical consumer find most useful?
• What type of branding will you place on the promotional giveaways? Is the logo enough? Will you add the social media profiles of your company? Is there an option to print a QR code that will lead you to your website when scanned?

By answering these questions, you will have a better idea of what kinds of freebies you can consider. Of course, you need to make sure that the items you will give people are of high quality.

One of the fool-proof and most elegant giveaways is embroidery items. If you are looking for a reputable embroidery company that can cater to your needs, check out Bladon WA. The company offers a variety of high-quality options for promotional giveaways that customers will appreciate and cherish.