Wednesday, April 26th was National Pretzel Day. At this point, you may be kicking yourself if you forgot to observe this wonderful holiday (and successful marketing strategy). But if you knew about it beforehand, you may have scored a free pretzel from one of America’s favorite pretzel chains. Several notable businesses nationwide celebrated National Pretzel Day by giving away free pretzels or offering other discounts. Among them were Auntie Anne’s and Sheetz.
Auntie Anne’s offered one free original or cinnamon-flavored soft pretzel to all members of the store’s rewards program. In addition to the free pretzel, members could become eligible for a mystery bonus reward if they added a dip or soft drink to their order.
The convenience store chain Sheetz offered a free pretzel with the purchase of a coffee or fountain drink.
Both of these delicious promotions are examples of a popular (and often successful) marketing strategy. That is, offering freebies to drive up interest and brand recognition, to generate more sales and returning customers.
Freebies in Digital Marketing: How to Increase Demand
You may have noticed that both of the free pretzel deals above came with some strings attached. Each company made it very easy for customers to redeem their offers for free pretzels. But neither company handed out free pretzels to everyone on the street.
Auntie Anne’s: “Freemium” Business Model
Auntie Anne’s free pretzel deal was tied to rewards program membership. Because the Pretzel Perks Members app is free to download, it’s likely that this offer would entice people to register. While some new members would only use the program once to redeem a free pretzel, others would not. Many more might join the rewards program and then become repeat customers as a result of it. In these cases, the free pretzel offer is already paying off because it has attracted more future business.
In addition to long-term business, Auntie Anne’s added a bonus incentive for small additional purchases. This increased the likelihood that members would add a drink or dip to their order.
This deal is similar to the “freemium” model that has become popular in digital marketing. In a freemium business model, a company offers a basic product or service for free, or a temporary free trial. More advanced features, meanwhile, are available with a paid subscription.
This model is widely used for subscription-based services. The intent behind freemium business models is that it draws people in and gives them a taste of the services. In Auntie Anne’s case, customers got a literal taste of the product. But for most businesses, it’s a matter of demonstrating a service’s value.
Many customers are hesitant to sign up for a service if they are unsure of its value. But by making a free offer, you will get more people in the door. This leads to more opportunities to sell a paid product to consumers. While most companies don’t enjoy 100% conversion rates, the freemium model can drastically increase sales volumes.
Sheetz: BOGO Offer
The Sheetz offer, meanwhile, was contingent upon purchasing a beverage first. For people who regularly stop in for coffee, the free pretzel is a complementary bonus. But for others, a free pretzel would be enough incentive to prompt the purchase of a drink.
This deal is a version of the classic “Buy One, Get One”, (BOGO) offer. Customers essentially receive two items for the price of one, but the deal is contingent upon making an initial purchase. This is another classic and effective strategy for increasing the volume of sales and earning more loyal customers.
This is one of the simplest promotions a business can offer. The theory behind BOGO deals is that customers who would not ordinarily purchase a full-price item will do so if something free is attached. Not everyone who enters a Sheetz convenience store might be looking to purchase a fountain drink or coffee. But a free pretzel is enticing enough for most people to pay the small price for a cup of coffee. The company is not losing money because the promotional deal is tied to sales of another product.
Buy One, Get One deals are a great, straightforward offer that any business can use. In digital marketing, a Buy One, Get One promotion can be a great way for online retailers to increase their customer base. It can also be used to sell a higher volume of promotional items, or many other purposes.
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