New York SBDC Research Network

From MarketingProfs : Who doesn't like free? When I worked at Columbia House, the music club company, our best offer was "Buy 1, Get 1 Free," not "2 for the Price of 1" or "Get 2 at half price." Why did we use "Buy 1, Get 1 Free"? Because it was more enticing to our customers, even though it's the same as "2 for the price of 1" or "Get 2 at half price." We always used this offer. Because it worked! It was our base offer for retaining customers, to which we often added other deals. We tested this offer over and over and it always yielded the best results in terms of customer lifetime value (CLV): i.e., the amount of revenue that a customer yields over time; minus the cost of product, fulfillment, and shipping; plus the cost to market to that customer. CLV also adjusts for the time value of money. The reality is that free is never free for the marketer. There's always an expense that has to be paid, even if...

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Ben and I must be on the same wavelength because I came across a similar item. So while on the subject: Free Love Trendwatching.com March 2008 This month, we'll be looking at FREE LOVE, which is all about the ongoing rise of 'free stuff', and the brands already making the most it. Not to mention the millions of consumers who are happily getting into a free-for-all mindset. Absorb and apply!