Customer Retention: How Free Merch Makes a Difference

Customer Retention

Customer retention is a big challenge for businesses. How can you ensure that your customers will continue buying from your business over the long run? Many experts have suggested offering free merchandise as a way to keep customers coming back. Studies show that businesses that gave away free samples saw a significant increase in customer loyalty and repeat business, but why does it work? Below are just a few reasons why free merch makes such a massive difference in customer retention.

Free Merch Makes Your Customers Feel Good

When you give your customers something for free, it makes them feel valued and appreciated. They will remember the gesture and appreciate the fact that you thought of them. This good feeling will make them more likely to do business with you again in the future. This can be a particularly good way to retain customers for a goods-based business, as your customers will have a product they associate with your brand for years to come. Additionally, if you are a business that sells food products, this allows your customers to try your product risk-free. This is a wonderful way to open the door for new customers who may have been apprehensive to buy your product.

Customers Feel Like They Owe You Something

In some cases, customers may feel like they “owe” you after you give them something for free. They may think, “This company was nice enough to give me this freebie, so I should probably buy something from them in return.” While this is not always the case, it can still influence customer behavior in a positive way. To lean into this approach, make sure that you avoid mentioning any exchanges, as your customers will appreciate the no-strings-attached approach. Also, ensure that this is a product that would elicit a response like this. A piece of candy with your brand name is nice, but it likely wouldn’t cause this reaction. Consider which merch items are best for attracting customers in this way.

Freebies Can Create a “Buzz” About Your Brand

When you give away free stuff, people will talk about it. They may tell their friends and family members about the great experience they had or post about it on social media. This can help to generate positive word-of-mouth advertising for your business, which can lead to more customers in the future. Working with a capable brand dedicated to this approach, such as DeSigns Incorporated, can allow you to further build on this buzz through the use of social media posts and content generation. Keep track of new customers through this engagement.

Overall, offering free merchandise is a great way to improve customer retention rates. If you can find a way to give your customers something that they’ll actually use and appreciate, then it could pay off in a big way for your business down the road! If you are not sure where to begin for your specific free merchandise, consider looking at other businesses in your field for inspiration.