The basic equation of ‘enterprising’ is to manufacture the product and then successfully sell it at a price which is higher the cost of all inputs combined. This equation is fairly simple and every entrepreneur starts with the same in mind. However, these days we find a visible concept of the ‘free product’ – something that runs in antagonism to the above stated equation. Although the concept of giving freebies is as old as the economy, this new concept of ‘free product’ has been developed with fine analysis and affects business growth and prospects in more than one ways. Precisely speaking, intricately developed free product strategies are capable enough to lift the sales and turn stagnation into growth trajectory! Let see how powerful techniques for customer acquisition is ‘giving away a free product’ and how brands can turn ‘free’ into paid?
The generic marketing is done that starts spinning out sales
Doling out a free product, especially after the new product launch could be beneficial from the point of marketing! People getting the new product turn up as the reviewers and, if the brand has successfully demonstrated the quality, then these people would behave as the brand ambassadors for sure.
People feel inclined to buy more and hence substantial volume increase in sales
This fact pertains to the human perception that when a product is being offered for free then people tend to buy more. This is especially true in the case when there is an offer like ‘buy 1 get 1’ or ‘buy 2 get 1’ and the like. People try to accumulate greater benefit through more than one transaction just because they get a similar product free.
More ‘value’ perception as compared to when discounts are given!
When a product is offered for free then people value it more than when it is discounted. This is also a fact related to the mental perception of things in competition and comparison dimensions.
Customers pay more at later date for the same product through which they are influenced
After building a positive thought and perception about the (new) product, they are willing to pay more for the same product.
Increased sales of other goods
When a product is added as a freebie then the sales of parent product is also found to increase – one of the oldest equations of freebies!
The social word & eWoM
Free product inspires quick gossiping and eWoM development through the users of the free product. If quality is assured, then this transforms into branding.
All these ‘free product’ strategies culminate into paid sales at later stage thus earning fat revenues for the company.
Startup firms have to struggle on more than one parameter. Their operations are nascent and need stability through trusted links with the suppliers, distributors, customers and others. Low finances are another constraint that pulls back quick expansion attempts by the startups. SaaS (software as a service) startup is a niche in the services spectrum of the economy. The demand for software products and apps is high and many countries/regions of the world have developed fine competencies in this segment. However here also, SaaS startups face constraints that are defined by the specific factors! Over competition is one such constraint. Here is a discussion on the strategies that can help SaaS startup to generate a quick turnover.
Applying inbound marketing strategies
It is essential to note that in the case of startups in the niche of SaaS, the use of outbound marketing strategies prove less useful because the customers cannot be approached through wider anonymous channels. In such case, there would be more spending while customer acquisition would be much less. Devising specific inbound marketing strategies could be very beneficial and leveraging the power of martech through the web is what is required! Here are the dimensions that can be utilized for generating quick customer base and turnover for a SaaS startup.
For the startup firms, the most significant requirement is the customer acquisition. This is dealt in the segment of CRM where the firm should try to productively manage the existing and potential customers. The SaaS startup should identify and work on the leads of potential customers.
Content marketing proves very useful; for the SaaS, the segment has educated customers that are also curious whether or not a particular software suite/app would fulfill their operational requirements. Engage in content marketing to convince these potential users of your SaaS through dedicated influencer marketing techniques of relevance. Proper content orienting helps attract leads through web social.
SaaS startup would have to first find the customers! However, after getting the first batches of customers, the SaaS startup firm should not loose them and try to retain them through personalized retargeting campaigns. Make products for them in a customized way so that the satisfaction never is lost. This helps to convert leads into customers with retargeting ads served through the email newsletters and personalized customer engagement/management campaigns.
Google Adwords based PPC campaigns help secure targeted traffic and potential customers. Such a strategy also plugs the gaps in inbound marketing. Bulk email marketing services prove useful to connect to leads of potential value.