Why Telecom Companies are Happy to Give you Free Stuff

The word ‘free’ has become synonymous with marketing. Every company, from cosmetic manufacturers to telecom giants now plan pricing structures and marketing strategies around the concept. For example, an online money wallet from a telecom company can be downloaded for free if you are a subscriber (and in some cases and in some cases even if you are not a subscriber), you can use the wallet to pay utility bills, transfer money, etc.  

Let’s just look at some reasons why companies are happy to keep customers ‘happy’ with free stuff.

1). Garner Interest – Once the word free has been added, the product becomes dearer in the eyes of the customers. It is more enticing for customers to try out newer products if there is a valu- added benefit or a ‘gift’ present. Let’s study this - if a customer were to buy Airtel Infinity plan, the interest is not on the price alone but the ‘free’ unlimited local and STD calls that are part of the offer. For a customer, this is great news as their monthly rental is fixed and they can talk all they want, without worrying about increasing the bill.

2). Drive Sales – There is something about the word free which will make customers gravitate towards a product. Remember, today’s customers are smart, the free stuff will actually be scrutinized to check if it is actually increasing the value of the product or is it just a marketing gimmick.

3). Builds Brand Loyalty – Free may get companies a new customer to try out the product, but value-added benefits along the way will keep their brand loyalty. Let’s just say a customer downloads the Airtel Payments bank for free. Now, when they are able to transfer money through the money payment app to a loved one sitting far away with just a click or transfer money to pay a bill, the ease, transparency, and smoothness with which it is done, will make a customer reluctant to shift to another app.

4). Gets the Reviews – The rising accessibility of social media means more customers can now review your products. A free bonus data with an Airtel Infinity plan or data rollover (unused data added to next month data) will not only boost sales but will also encourage customers to share their joy on Facebook, Twitter, etc. In fact, most will be happy to share their views on the company website and social media pages.  More positive reviews, definitely lead to a higher interest and sales! 

There are many studies revolving around how to build loyalty, well the first thing is offer quality products, at cost-effective prices inclusive of free stuff and backed by superlative customer experiences. Together, they build brand loyalty, and that‘s the reason why companies are not going to be putting any brakes on marketing strategies offering free stuff to their customers in the near future.