How free samples can work for your business
Everyone loves a free sample. If you've ever been to Costco on a Sunday morning, you know how passionate people can be about the concept of a commitment-free taste test.
In recent years, businesses have begun adapting the concept to their own industries. Last September, General Motors gave it a shot by promoting a 60-day satisfaction guarantee program, essentially offering customers the option to purchase their vehicles under a commitment-free trial policy.
Was it successful?
One month into the promotion, GM reported* that about 30% of vehicles sold under the coverage were returned. However, they also stated that only 10% of those returned were exchanged for non-GM vehicles. More important than the program's numbers, GM's greatest success was in utilizing the information to engage dissatisfied customers. The company placed personal phone calls to every individual who returned a vehicle, asking for feedback on their experiences with GM's products.
In August, University of Phoenix announced** the expansion of a free trial pilot program it has been running for the past year at a select number of campuses. The pilot program replaces the standard show-and-tell style prospective student orientation with a more in depth day-in-the-life-of simulation. Students in the program are required to attend four three-hour classes and do homework, allowing students to test drive the experience and commitment of going to school.
Was it successful?
According to University of Phoenix, 25,000 students have participated in the pilot program since its inception last summer. 80% of those students have enrolled in the school.
With a little creativity, the concept of a free sample or free experience can open up new avenues for business development. Remember that a successful Return On Investment can't always be measured by dollars and cents. The relationships and opportunities you build along the way can be even more valuable than ROI on paper.