When somebody provides one thing for FREE, there are many issues that occur… most of which find yourself destroying your model. However for people who take a special method, there may be super alternative to seize a a lot greater market and solidify your BRAND.To start out, it is necessary to grasp the distinction between constructing “Brand Awareness” and “Solidifying your Brand” in relation to establishing a Model Technique. Usually occasions I see these two turning into comingled which may find yourself resulting in “Brand Erosion” for a enterprise. Seeing this does not occur is likely one of the key duties of a pacesetter (CEO or Enterprise Proprietor)… not the duty of selling or gross sales or another silo inside your group.Constructing “Brand Awareness” is about introducing new folks (potential clients) to your model… permitting them to see that you just exist within the market. It’s an attraction technique… one crammed with schooling and pleasure for a possible buyer. It’s about sharing with them one thing inside what you are promoting that may assist them enhance their lives (or enterprise) they did not learn about earlier than. It is getting the phrase out to an viewers you recognize you possibly can assist. It’s NOT about FREE.To me, FREE is a “lazy marketing” means of constructing Model Consciousness. It is simple… supply something of worth for FREE and you’ll appeal to folks like a magnet. This is not rocket science or strategic advertising and marketing… it is simply straightforward and would not take quite a lot of experience. Do we actually want a advertising and marketing division to do that for us?There are 5 key points with providing FREE that may finally end in BRAND EROSION…
It doesn’t assure any additional purchases… simply because somebody checks you out on one in all your free provides doesn’t suggest they are going to ever come again and pay to your merchandise sooner or later. The hope of each marketer is for the shopper to see such an unbelievable product or expertise they are going to need to come again and spend their cash… most clients do not. Except your expertise rocks their world and is one thing they are going to need extra of, merchandise often do not convey them again… they’ll discover comparable merchandise at a cheaper price someplace else. That is the commodity world of in the present day the place clients can discover nearly as good or higher merchandise at decrease costs.
It is giving freely margin/profitability which impacts different areas and merchandise… your services or products wasn’t free so that you can create or purchase so something above free means you might be giving freely worthwhile margin and profitability. Once you do that, it’s important to “cover it” by both growing costs on different merchandise/companies or decrease the margins in your prime merchandise/companies. Each of those are dangerous concepts from the standpoint of each the economics of what you are promoting and your Model. And the shopper retains on anticipating this over and over… frequently reducing profitability over time.
It attracts “bottom feeders” to what you are promoting, not your required clients… nearly all of time Free doesn’t appeal to your required “Customer Personas”… those you actually need to get extra of… it attracts these merely on the lookout for low cost/FREE offers. This will grow to be a HUGE PROBLEM to your Model when you think about the ramifications. In the event you appeal to the “wrong customer personas” by providing free stuff, then your “desired customer personas” will begin to assume they don’t seem to be the kind of clients what you are promoting is attempting to serve since you might be catering (focusing on) to those different personas. This has a “double negative” implication as a result of you find yourself with extra of the incorrect personas whereas dropping extra of the specified personas. This finally can CHANGE YOUR BRAND from what you need to one thing you don’t need in a short time. Many companies find yourself on this state of affairs and by no means have a clue how they obtained there. This is likely one of the prime causes companies find yourself having quite a lot of the incorrect personas as nearly all of their buyer base.
It tells your clients who paid for one thing else they had been ripped off… for those who had been a buyer of a enterprise that was providing FREE provides to others (not you) it might make you are feeling such as you had been both not necessary or being taken benefit of by the corporate. It sends a loud and clear message to your current clients that they’re funding the free clients as a result of they’re those paying. This by no means ends properly. The perfect clients surprise why that is the case and get increasingly upset after they see others getting free provides and so they preserve paying premium pricing. Banks are consultants at this “bait and switch” technique of luring you in with free after which charging you a fortune in charges whereas they proceed to supply FREE to the “new customers only” as a substitute of those they’ve already acquired. This can be a nice technique if you wish to flip what you are promoting right into a commodity and competing on worth… however very damaging to your model technique.
It lowers your model worth within the thoughts of potential (fascinating) clients… just like quantity four above, providing FREE sends a really clear message to your potential “desirable” clients that this is probably not the suitable enterprise for them to purchase from since you cater to a special viewers together with your free provides. It has ramifications in your merchandise, companies, and buyer experiences. Here is a easy instance… you promote purses that value $500 and also you supply smaller purses at no cost to new clients… with the intent to draw extra clients. When your potential (fascinating) clients see this, they instantly really feel the worth of the model has been lowered and that your purse actually is not well worth the $500 they’d have paid for it so that they transfer to a different model with greater model worth. You find yourself attracting extra of the decrease finish clients and by no means attracting the upper finish fascinating clients.
There are different impacts of FREE… these are ones I really feel are probably the most detrimental to a BRAND and to your BUSINESS.
However this is the OPPORTUNITY for many who perceive this and resolve NOT TO PLAY within the enterprise recreation of FREE. To start out, merely do EXACTLY THE OPPOSITE of the 5 points I listed above… go in a special course and DON’T OFFER FREE. Inform advertising and marketing they’re being lazy. Ask them to be inventive and progressive in “telling your story” and focused to your “desired personas”. Let your potential and current clients know indubitably how one can assist make their lives/companies higher by utilizing your services.Your management staff ought to agree to supply solely prime services to your desired personas AND make a dedication to create a CUSTOMER EXPERIENCE that’s extremely superb and can unquestionably reveal you might be OBSESSED OVER YOUR DESIRED CUSTOMERS. If management commits to creating this occur, you’ll not solely preserve the specified buyer personas you’ve however begin to appeal to others who’re similar to them… fascinating new clients.This technique will assist you to begin removing the non-desirable clients you’ve picked up alongside the way in which since they are going to begin seeing what you supply (merchandise, companies, and buyer expertise) actually is not for them and they need to transfer on to a different enterprise… hopefully your opponents. Let your opponents take care of these much less fascinating buyer personas whilst you appeal to extra of the suitable buyer personas.When management (CEO or Enterprise Proprietor) creates this BRAND STRATEGY and directs advertising and marketing (and different teams) to search out inventive and progressive methods to ship and talk this message, you could be again accountable for the model you need as a substitute of 1 that’s dictated by your non-desirable viewers. This lets you change the sport, set your self aside, and be differentiated in your buyer’s eyes. This can be a BRAND STRATEGY that STOPS BRAND EROSION and lets you BUILD THE BRAND YOU WANT.