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'No-frills' works, but be cautious
No-frills deals can be effective in attracting specific groups of customers to particular products. They won’t work in every situation, so you need to do your research.
In some markets, a group of customers may be willing to accept a more basic product in return for a lower price. This often works in food retail, with customers attracted to simpler, low price versions of staple products, like soup and baked beans. It can also work in travel, with customers willing to forego seat reservations and in-flight meals in order to make a saving.
There are risks, however. You might lose some existing customers, or devalue your product or brand. Customer research would therefore be useful in establishing the demand for no-frills deals in your market.
Everyone loves a freebie
Free gifts can be a great way to attract customers away from your competitors. Done correctly, it can be very cost effective too.
Customers love freebies and offering them something for nothing can help to establish your business as a generous, trustworthy brand, worthy of their loyalty. This approach can attract more repeat custom than a limited-time price offer would achieve, so should be taken into account when assessing its cost effectiveness.
Compared with the costs of lowering prices or advertising campaigns, freebies can be a great way to spend your marketing budget. However, don’t neglect customer service or the quality of your products, as in the longer term these will be more important factors in retaining your customers.
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