A Freebie for Your Trust

Image: Kim Kyung-Hoon/Reuters

There’s a reason that companies hand out swag as guests head for the door after events, and a rationale behind their running contests and giveaways on Facebook: Freebies make people feel good, and that quickened pulse, the thrill of getting something for nothing, usually makes consumers rate a brand more favorably.

So it makes perfect sense that Sony, reeling from the revelation that hackers accessed credit-card information and other personal data from 78 million of its PlayStation Network users, is offering gamers free access as a way to start regaining their trust.

And while some users responded positively, analysts warn that major damage has been done and the company may have to give away more than just goods or services.

"Damage has been done to Sony, whatever the scale of the content giveaway at this point, and Sony is facing a prolonged effort to regain customer trust," Jay Defibaugh, director of equities research at MF Global in Tokyo, told Reuters. And as news emerges that the company is dealing with a breach on another gaming platform, customers are sure to want more.

Lisa Pool, owner and agent at cc101 productions, a Los Angeles-based branding and marketing firm, says specialty giveaways are a critical marketing tool, especially for small businesses that want to increase their visibility on an extremely limited budget. “We’ve found that by doing targeted giveaway campaigns, we can add anywhere from 2,000 to 5,000 new users.” Those users can then spread the word about your company, product, or service.

When it comes to admitting fault, a little guilt offering can go a long way, especially when what the company is giving away is what the customer wants. “Know what your customer gravitates towards in terms of product,” Pool recommends. “Think about what perks would really grab their attention. Don’t do what’s standard. If the promotion is too prevalent, it’s passé and customers will see right through it.”

Get more business intelligence from Portfolio.com:

• After Bin Laden's Death, Be Cautious: What should business travelers expect in the near term now that U.S. forces have killed Osama bin Laden? Anger in some parts of the world toward Americans. Tighter security at airports. And more scrutiny of places like hotels and tourist areas. Bottom line: At least for now, proceed with extreme caution.
• Pow! Bam! Zap! Biz!: Don’t have time or money to attend B-school? Two entrepreneurs think comic books on business topics just might fill the gap.
• Coupon Nation: As the group-buying space expands and consumers find themselves with more deals than they can actually use, secondary markets like Lifesta.com offer a way to cash in on unused deals.