Posted in Marketing and Strategy Terms, Total Reads: 484
Definition: Free Merchandise
Free merchandise is the additional quantity of the merchandise given as consumer incentive. This is done to make consumers happy and increase sales and loyalty. Ultimately, the aim is to provide value for money and contribute to profit.
There are programs targeting the customers of a company and retaining them for longer period. Free merchandise are being widely used by more companies as they realize that existing customers will cost less to reach, convert and sell and are less probable for conversion by attacks from the competition. They buy more over the long term as their loyalty increases. If they are kept happy, they will be loyal to the brand.
Coupons/free gift, reward programs, free shipping, members-only rewards are also part of incentive program. Free merchandise can be given in two ways. Either by given more quantity for the same price or the same quantity for lesser price.