Free gifts as a marketing aid?

[Boo]

After the recent debacle with the postal strikes, my orders are noticeably down this last month or two. In July and August I had the best sales to date and since I went on holiday at the end of September, casual sales noticeably fell off. From anecdotal evidence from friends and neighbours and through e-mail enquiries sent to me etc., I suspect many people were put off buying through that period of uncertainty with the post.

We should be in the busiest time of year, yet it is slow just now compared to previous years at this time.

I wondered what experience people have had with offering incentives - does it make any actual difference to sales?

I was thinking of offering a free pair of earrings with each order - or maybe if an order totals more than a stated amount. I have two designs in mind to offer choice (one of which could be done in many colours) - which shouldn't be expensive for me to offer - largely my own time, which I'm willing to donate.

But I read the forums on other sites quite a lot, like Etsy - and a comment that comes up very often is that people are suspicious of freebies - some vehemently so. I have seen it said many times that if you can afford to include something extra, the buyer would just prefer that you dropped your prices.

I genuinely think, in these difficult economic times, that it would just be a nice thing to do as we approach the festive season - to spread a little gesture of goodwill - and I will stand the costs.

Has anyone had any experience of running such a campaign yourself, or how would you feel about it as a customer?

[The Dragon]

I can only answer from a buyers point of view.

The people I buy display items from send me cheap and I have to say tacky toys with their branding on when I order which for some reason I find vaguely insulting and in their case would prefere a cheaper product.

All of the lampwork artists include a free orphan bead or two as does sowzeree with her silks. It is always apreciated as the quality is good and the items don't go to waste. However if they stopped sending them it wouldn't be a great deal for me as the original product is purchased because it inspired me.

I guess what I'm trying to say is that the idea could work in the right context (I don't think you could ever do cheap and tacky). Have you thought about doing a 'special' offering it for a limited period of time using the Christmas angle to see how it goes. You can always extend the offer a bit longer if it works, Cookson's do it all the time.

Sorry I'm not being much help am I?

[Boo]

No, that is helpful, this is what I want to hear.

I certainly don't want to go down the route of fridge magnets or something - they have very limited value I suspect. What I want to include is either a simple pair of fire polished crystal and Sterling earrings - I've sold a lot of them at craft fairs as they have a low unit price and are pretty party wear and I can do them in a dozen or more colours, with an alternative option of some little copper hearts. Some of those are just waiting for the tumbler, so I can photograph what I have in mind later.

I was thinking of doing it just up to Christmas as a little Christmas and thank you gift to customers from me.

[snow_imp]

Were you thinking about giving people a choice of the free gift they get - 'cos as we know from the forum, there are still people who do not have pierced ears so might not appreciate something they cannot wear themselves.

Admittedly, they might be happy to give them away when they get them.

[Jayne]

I think it's really tricky.
If you're selling to a new customer it might create the wrong impression, but I think that if you can target this offer towards people who have already bought from you, people who already know that you produce quality jewellery, then it could prove to be a useful tool for generating repeat sales.
Would you be able to discriminate?
J x

[Boo]

there are still people who do not have pierced ears so might not appreciate something they cannot wear themselves.

Good point, I meant to add that I could offer a bag charm or something for anyone who doesn't have pierced ears. I have another idea for a non-jewellery item too - something I did for big spenders last year, but didn't market it in any way. But that would take more work.

If you're selling to a new customer it might create the wrong impression

In what way might it give the wrong impression? The hope would be to encourage new customers with an incentive, as well as reward existing or repeat buyers with a thank you gift.

if you can target this offer towards people who have already bought from you, people who already know that you produce quality jewellery, then it could prove to be a useful tool for generating repeat sales.

In some ways, they're not necessarily the ones I want to attract - hopefully they already know my quality and level or service, so I'd be thanking them for their custom, rather than trying to entice them to buy for the first time.

Would you be able to discriminate?

Yes, I have the ability within my shop system to see how many orders someone has placed etc., but that would rather undermine the idea I think. I don't want to discriminate between customers and treat some better than others - that would negate my ability to use it for marketing purposes and not really in the spirit of what I was hoping to do.

One easy way to differentiate would be to make it conditional upon a particular minimum spend, but that doesn't feel in the spirit of my intention either.

[lesley]

My gut reaction is that a low value gift wouldn't encourage sales. I would be suspicious or say, "Just knock it off the price".

I love it when bead makers give extras but they don't advertise this and, as Annie said, I wouldn't stop buying if the freebies stopped.

Don't you think that if someone is looking for some quality handmade jewellery a small free gift isn't really going to swing it either way?

[Ominicci]

Boo do you just mean for online sales? Or at stands aswell?

I have bought a few things this year and got a freebie that I didn't know about - which made it all the more nicer - one from overseas who sent me a free ring with the one I bought from him, and a small dragonfly Charm from Lynne at the DragonFly Company when I bought some jump rings from her and some extra spacer beads from Julie Fountain of Lushlampwork and a free cab from Designer Cabs. I don't know if any of them do this for all their orders or only those over a certain value (these were all over £50), but they certainly didn't advertise it. And it does make me more inclined to do repeat orders with those people rather than new suppliers

If you advertise freebies it could work both for and against you as you have already mentioned.

I am planning to give mini polishing cloths with orders over a certain amount but not sure if I would necessarily advertise it... will watch discussion with interest...

[mizgeorge]

I tend to include a gift (earrings or cufflinks usually) with orders over a certain value. I also pop a small polishing cloth in with larger silver stuff. It definitely helps, particularly with new customers. For existing customers, I generally offer a discount on subsequent purchases, which I believe has prompted additional orders.

I also add something (usually a clasp or pair of earwires) with larger findings orders.

However, I also think sales are down for the time of year. I'm not hugely despondent about it yet, I suspect a lot of people are just leaving their gift shopping a little later than usual. Or that's what I'm hoping anyway!

[Petal]

Boo do you just mean for online sales? Or at stands aswell?

I have bought a few things this year and got a freebie that I didn't know about - which made it all the more nicer - one from overseas who sent me a free ring with the one I bought from him, and a small dragonfly Charm from Lynne at the DragonFly Company when I bought some jump rings from her and some extra spacer beads from Julie Fountain of Lushlampwork and a free cab from Designer Cabs. I don't know if any of them do this for all their orders or only those over a certain value (these were all over £50), but they certainly didn't advertise it. And it does make me more inclined to do repeat orders with those people rather than new suppliers

If you advertise freebies it could work both for and against you as you have already mentioned.

I am planning to give mini polishing cloths with orders over a certain amount but not sure if I would necessarily advertise it... will watch discussion with interest...

Interesting thread this! I think Barbara (Solunar Studio) gives customers a complimentary pack of, (I think), polishing cloth, anti tarnish tabs and ear studs etc. I think this would be regarded very favourably with customers, rather than the idea of a free pair of earrings/bag charm, as I think they would just think that if you put your prices down, then they would buy more. As a result of Barbara's post I have started giving a complimentary pack with my sterling silver or rolled gold purchases, but not my plated stuff that I do for children. Every time I have done this, I have had a very favourable response and more purchases have been made by customers.

hope that helps.

xx