In the current competitive landscape, commercial strategies are multiplying to capture the attention of consumers and differentiate themselves. One of the most common and attractive tactics for many companies is free as a commercial strategy. Whether it is to attract new customers, generate engagement or test a product, offer something for free seems to be an effective method. But is it a really beneficial long-term strategy? If it is often successfully used by major brands, free of charge also has its share of risks. This article explores the advantages and disadvantages of this approach, based on recent studies carried out in France.
Free: a powerful acquisition tool
Offering a free product or service is first of all attracting attention. In a saturated market, this strategy is a way to stand out. Many companies, especially in the digital sector, use free to generate first contacts with prospects that would not have planned to buy immediately. The “freemium” offers, for example, where a free version of a product is offered with limited features, make it possible to capture interest and encourage users to convert into paid customers thereafter.
A BVA Group study in 2023 on online consumption habits reveals that 56 % of French consumers have already downloaded an application or service only because it was free. This approach therefore makes it possible to win users quickly, without them having to make a purchase decision immediately. The idea is to seduce users by offering them something of value, even limited, and then encourage them to move on to the paid version once they are convinced of the usefulness of the product.
This is found in many sectors, whether in software (such as Dropbox or Spotify), free samples of beauty products, or subscription services such as streaming platforms. These models are based on the idea that free is used as a bait to capture a fairly wide user base, and that conversion to a paying subscription or the purchase of a full version follows.
Loyalty and free commitment
Free is also a great way to strengthen customer loyalty. By offering a sample, a free trial or premium content without consideration, a company can create a feeling of gratitude among its consumers. They feel rewarded and are more likely to come back, or even to buy afterwards. Free can also help to establish a relationship of trust with consumers, by proving them that they can test a product or service without taking any financial risk.
This is particularly true for companies that wish to develop their brand image. Offering a product for free, or at a symbolic rate, can strengthen the idea that the company is above all focused on the satisfaction of its customers. This works particularly well in the sectors where reputation is essential, such as catering or hotels, where a gesture of free can improve the perception of the brand and encourage word of mouth.
A striking example in France is that of Joyful coffeea chain of cafes and restaurants that employs people with disabilities. The company regularly organizes free events to introduce its products, an effective way to make consumers aware of its cause while encouraging them to consume. This approach generates a high commitment and loyalty rate, with a very positive brand image with the public.
The limits of gratuitousness: a short -term vision?
If freeness can allow you to quickly acquire customers or improve brand image, it also includes major risks. The first problem lies in the sustainability of this strategy. If a product is still free, how does the company manage to make it profitable? Offering free services too often can weaken the perception of the value of what the company offers, making it more difficult to transition to a paying model.
A study conducted by Kpmg In 2022 reveals that 45 % of French companies that adopted a freemium model found a low conversion of free users to paying subscribers. Indeed, some users remain trapped in the free version of a product or service, seeing no need to move to a paid version. The free product then becomes a tool to maintain the user base, without generating enough income.
In addition, gratuitousness can also attract customers who seek only a temporary good or service, without intention to buy in the long term. This phenomenon is particularly visible in the mobile applications and online video games sector, where users of free versions are often less committed and more difficult to convert to paid customers.
The risk of brand devaluation
Another potentially negative consequence of gratuitousness is the risk of devaluation of the brand. If a product is perceived as “free”, consumers can start to doubt its quality or importance. Indeed, the free offer can sometimes be perceived as a “second zone product”. Consumers are often ready to pay to get something they consider of value, and freely can paradoxically send an opposite signal.
In some cases, companies that abuse freeness can see their brand image assigned. For example, continuous free offers can give the impression that the company is fighting to attract customers or that it does not trust its product. This can be particularly harmful in sectors where brand image and perceived quality are essential for differentiation.
The “free” effect: a psychological trap
Finally, gratuitousness can sometimes lead to a psychological trap for the company itself. The free model can attract a customer base that is not ready to pay for a product, even once the free version expired. This creates an unbalanced relationship between the number of free and paid users, which complicates long -term profitability.
A study of The Observatory of Purchase Behaviors In 2023 shows that 38 % of French consumers claim that they would be less inclined to buy a product if they had already had it for free, even in the form of promotion or trial. This situation creates a dilemma: the company must continually increase the perceived value to convert free users into paid customers, but this remains an arduous task.
A good free strategy: how to do it?
That said, gratuitousness can be an excellent strategy, provided you are used with discernment. Here are some tips to adopt it effectively:
- Limit free time : Offering something for free for a limited period (example: one month’s trial) can encourage consumers to test the product, but also make them understand the value of the paid version.
- Offer a quality product : Never underestimate the importance of product quality, even in a free offer. This will transform users into brand ambassadors.
- Use free as a targeted acquisition tool : Target a precise audience and use free to convert hot prospects rather than unskilized users maximizes the chances of conversion.
