My recent trip to Sephora (situated in Pacific Centre) last weekend left me in very high spirits. I managed to snag a couple of items on offer for a relatively affordable price, along with a couple of free samples. Only after pulling items out of the little black and white Sephora paper bags did I begin to wonder why that was. Why was I so happy?

Why would Sephora willingly incur a few $100 dollars worth of lost potential revenue to give away commodities they’d otherwise make a profit out of?

The answer was simple. It was a strategy. Large businesses allocate enormous amounts of money into financing their marketing for the purpose of attracting customers and clients in order to grow their customer base, increase customer loyalty and build customer relationships in order to build up a positive, lasting brand image.

Compared to the large costs incurred by financing their marketing segments, spending a few $100 on free samples is arguably; albeit cheaper; a more powerful way of reaching customers and forging relationships with customers. The one-on-one interaction creates a bond of trust between the customers and the brand. It also serves as the brand laying the foundation for the potential customer to continue engaging with the brand.

With the introduction of a free sample, a company is able to get the customer to try a product without having to discourage them by placing a price barrier. In addition to being more likely to try out the product, customers also gain a sense of satisfaction from the encounter, thus connecting that positive feeling to the brand, forming positive sentiments of it within their minds.

This leads to a loyalty loop as their experiences and sentiments are shared with their peer/social groups, in turn influencing them and encouraging more people to try out the brand.

I have to admit, my favorite brand of facial cream was originally given to me as a free sample. I’d been eyeing it for some time but never really had the incentive to go out to purchase a tube. The power of free samples should never be underestimated!

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http://www.sephora.com/beloved