Sampling is well known as a powerful strategy when it comes to food; anyone who’s been at the mall approached by a tray of delicious bite-size morsels of Auntie Annie’s pretzels absolutely knows they’re getting in line after just one taste. The incredible impact of sampling as a marketing strategy is best told by the amazing findings in a Costco article featured in The Atlantic. Costco studied the ratio of product sales after in-store samples were consumed, for frozen pizza sample-takers sales went up by 600% and yogurt by 55% as compared to non-samplers where only 15% of shoppers who refused a sample bought the product. In other words, when consumers sample a product, the likelihood they’ll buy it goes up by an incredible margin. Let’s dig in and discover the psychology of sample programs and why they work so well.

The Psychology of Free Samples

According to market research studies, 81% of consumers said they’re more likely to try a new product after receiving a free sample. Are we just being polite or is there something more at play? There are two main psychological principles influencing our response to and decisions surrounding samples.

Risk Aversion: People tend to stick with what they already know they like and are comfortable with.

Trying new things feels like a gamble. “What if I don’t like it?”  and “I don’t want to spend my money if it might turn out bad.” It just feels better to stick with a sure thing. For most, the internal conflict is too uncomfortable to bear. Samples take the risk out of the equation since they are typically free or at a discount. This represents half of why giveaways work.

The Principle of Reciprocity: An intrinsic need to balance relationships with others; if we receive something we’re compelled to give something in return.

Anyone who brings a hostess gift to a party knows what this is all about. Once the hostess accepts my gift, I am indebted to the hostess until the favor is returned. Again here, the unresolved conflict sits heavy in our gut, so we look for the fastest way to ease the guilt. Reciprocity may not always create a strong enough feeling for someone to make an actual purchase, but combine it with risk aversion, it’s a powerful purchase driver for a large segment of the population.

Without a doubt, product sampling works for very specific psychological reasons. By gifting free product tidbits, you not only get your customer’s attention but also provoke a sense of goodwill where they feel compelled to reciprocate at some point. While the initial expense of a sampling program may be higher than other marketing strategies, the results are almost always astounding.

7 Free Sample Program Ideas Worth Trying

1. In-Person Sample Offerings: Ideal for retail and food-based businesses where staff can engage with customers and close the sale on the spot. Sample SWAG bags are always a hit and ideal for distribution at community/sports events.
2. Send Free Samples via Direct Mail: Be selective with the list. Include recipients based on specific demographics or previous buying habits. Be sure to include a coupon or online link to track response.
3. Free Sample Packs to Showcase Skills or Offerings: Give prospects a chance to see what you do. Online photo giant, Shutterfly, offers complimentary wedding invitation packs so nervous brides can touch and feel their product in hopes they buy.
4. Offer Online Sign-Up to Receive Samples: Create landing pages where customers can request a free sample from you. Blue Buffalo pet food has built their core marketing around this strategy and uber-retailers like Walmart and Target have free sample programs that sell out right away!
5. Bundle Samples Attached to Purchases: Physically attach a related sample with another product to encourage customers to try it. This is the most passive form of sampling, meaning it doesn’t generate the same reciprocity feeling as if you hand me a sample, but it gets the product in your customer’s hand which is all that matters.
6. Free Gift with Purchase: Offer free samples with any purchase as an extra. Even better, if you can give customers the chance to pick what they want. Kiehl’s skincare has built their entire high-end business on this strategy because it totally works.
7. Supply Free Products in Exchange for Specific Actions: You’ve seen the social media evangelists that review products and share with their social channels, picking up thousands of followers who hang off their every word. Offer free samples in exchange for reviews, social shares, surveys, anything that engages your audience and grows your business at the same time.

(Click here to download our “7 Ideas” PDF)

Three Must-Dos Before Launching a Sample Program

Partner with an Experienced Shipping Firm: Your first step is to consult with an experienced parcel marketing firm to control campaign cost and determine delivery guidelines. They can make packaging recommendations like size, weight, thickness, materials, and coating to keep cost low and guarantee your package won’t be rejected by automation equipment. Three Dog manages countless parcel campaigns every month and includes consulting expertise with every project.

Outsource Wherever You Can: Stay focused on your business by avoiding the logistics involved with printing, packaging, and mailing samples – save yourself serious headaches and avoid the complexities by joining forces with outsourcers who handle this stuff every day. For printers out there, who are interested in supplying clients with say the box and stuffing, but not all parcel marketing services, it’s easy to outsource pieces to other vendors and still be the hero. A reputable parcel marketing firm can provide guidance on choosing the right vendors to partner with.

Measure Conversions Carefully: Sampling can be more expensive than other marketing efforts. Devise a plan to carefully measure marketing efforts so you know what’s working and what isn’t. Use promo codes, coupons, email drip campaigns, and web sign-up pages to track sales and your return on investment.

At Three Dog Logistics, our expert parcel consultants can take your free sample ideas from concept to fruition quickly and at the lowest cost possible. Remember, at Three Dog Logistics we take the bite out of postage and freight. Contact us at threedoglogistics.com or call 410-284-5494 ext. 250 to schedule a complimentary consultation today.

The post The Psychology of Free Samples and Why They Work first appeared on Three Dog Logistics.

When the unexpected happens, it puts customers in a position of complete helplessness which is an uncomfortable feeling for us as humans. Of course, customer impact varies greatly, from the late arrival of a coupon or event invitation to supply chain customers who are totally dependent on supply deliveries needed to conduct business. Customers rely on you to mitigate the impact delivery delays for them. These storms and delays also can have a major impact on your organization itself. Delays can erode your business’ reputation, customer retention, and bottom-line results. So, how prepared is your business before the next major weather event hits?

According to a UPS study on customer experience preferences, consumers want to be notified of delivery status and delays. Brands that alert customers to problems build loyalty, trust, and long-lasting connections. You may have systems in place so your staff is aware when mailings and parcels are delayed, but that’s not good enough, knowledge is only useful if you act on it. Can you quickly answer these three questions?

1. How will you communicate delays with your customers?
2. What will you say or offer to your customers?
3. Who else in your organization is aware of what to do or say?

If you’re still staring blankly at the questions no worries, we’ve got you covered. Creating a customer communication plan takes thought and preparation, but once in place will bring peace of mind next time Mother Nature decides to throw a curveball your way.

Three Steps to Create a Customer Emergency Communication Plan

1. Implement an alert system so your team is aware of possible delays in advance. Sophisticated mail firms will have this option available. At Three Dog Logistics we developed OBBAgistics, a real-time tracking system that knows exactly where your mail is at any time, has built-in delay alerts, and projects/confirms in-home delivery dates.
2. Develop an internal customer communication plan. The plan will include outreach methods, customer data sources, message templates, and designated staff to execute the communication plan when necessary. Communication platforms vary based on business type, but options include email, text, social media and website postings – and don’t forget good old-fashioned phone calls. Make sure that your team has easy access to current customer data necessary for alert distributions. For example, if the alert method is email, do you have current customer email addresses and do employees know how to access them? No matter what method you choose, personalized and timely is critical. Send alerts only to those who it’s relevant for and as soon as possible. Sending an email about delays after the customer has received the item just makes your company look unprofessional and disorganized. Pay special attention to critical supply chain customers who depend on deliveries to run their business and prepare in advance to assist with their specific needs and concerns.
3. Train employees on how to assist and provide answers for customers. Emergencies tend to make customers reactive and that means they’ll want answers quickly. Train staff on the delay communication plan, include them on all alerts sent and provide an FAQ source to assist with answering customer questions. Be strategic; assign specific staff to dedicated posts like email response, social media replies, and phone calls. During emergencies, an organized team able to reassure customers and provide them with answers builds confidence and trust.

Crafting Delay Messages that Create Good Will with Customers 

• Consider multiple outreach methods. Depending on the severity of the situation, an email followed by a call shows you understand how serious the issue is for them.
• Sincerely apologize, leave out the buts. Sounds rudimentary, but a sincere apology without the typical “but we can’t control mother nature” will go a long way.
• Explain the situation honestly. Be transparent, tell customers what happened, how it will impact them, and what the next step is.
• Give customers options. If you can do anything to remedy the situation, offer it to them. If not, tell customers what you will do for them once the delay has cleared.
• Only promise what you can realistically deliver. Don’t offer false promises that you can’t guarantee, it will make the situation worse.
• Keep customers informed as things change. Multiple alerts sent as more information becomes available helps clients feel in the loop and may decrease their anxiety.

At Three Dog Logistics, our experts can ensure your team is prepared for the next big weather event! We’ll help you take full control of any mail and parcel deliveries, so you know when your mail is delivered, and have full visibility throughout the process. Remember, at Three Dog Logistics we take the bite out of postage and freight. Contact us at threedoglogistics.com or call 410-284-5494 ext. 250 to schedule a complimentary consultation today.

The post Prepare for Delays BEFORE the Next Big Storm first appeared on Three Dog Logistics.

Goal #1: Reach your target audience and get them to notice your mail.
Goal #2: Engage the direct mail recipient so they interact with your company or organization.
Goal #3: Achieve goals #1 and #2 at the lowest cost and fastest rate of speed.

Super easy right? Sure.

While I can’t promise the recipient will notice or interact with your piece, I can guarantee that by using commingling, it will reach the recipient faster, cheaper, and in better condition than traditional mail delivery. I understand the topic of commingling often makes people’s eyes glaze over and suddenly think of tons of really important things to do other than read this article, but hang in there – it’ll be worth it.

In a nutshell, a commingling service consolidates millions of pieces of mail, pre-sorts to the closest destination point, and processes them through a high-speed delivery point barcode scanner which then directs the piece to one of 294 USPS locations. It is NOT the same as combining mail together in one bin and drop shipping from a bulk mail unit; way more sophisticated stuff. Commingling is a mail optimization tool that does most of the work for the post office, thereby getting it very close to the end delivery point so USPS barely has to touch it. In return for this convenience, USPS grants significant work share discounts saving you lots of money.

In addition, because the mail bypasses many of the USPS processes and machines, it arrives very quickly and in great condition. You know what I’m talking about, that gorgeous direct mail masterpiece you created that arrived ripped, covered in black streaks, and horribly mangled. I promise that won’t happen with commingling.

The commingling process conducts zip sorting primarily at the deeply discounted 5-digit level and because of the massive volume also meets the hefty minimums required by USPS. Numbers don’t lie, on average a typical presort of 50-100k names results in 37% at ADC rates and 60% at the 3-digit zip discount tier. With commingling of 3 million pieces 77% qualify at the 5-digit zip discount tier and 19% at the 3-digit zip discount tier. Even after commingling fees that could mean a sizeable chunk of change to keep in your piggy bank.

COMMINGLING QUIZ – TRUE OR FALSE?

1. A commingling service delays delivery because of additional processing time required. FALSE
Three Dog Sorting runs commingling processes in real time every day; we recently increased our capacity by 30% making us the largest privately held sorting facility on the East Coast.

2. Commingling services can save money for small or large direct mail campaigns. TRUE
While cost reductions will compound faster with larger mailings, merging small campaigns with the millions of pieces processed every day will qualify for top-tier discounts delivering significant savings for all of our clients.

3. Commingling services are too expensive for our organization. FALSE
Direct mail and its huge cost is a necessary evil for your business so if you can save even a penny per piece why wouldn’t you?

At Three Dog Sorting, we sort millions of pieces of mail every day and can most likely deliver significant savings for your business. Visit www.threedoglogistics.com/commingling/ or call 410-284-5494 ext 220 to schedule a complimentary consultation today.

The post Insider’s Guide to Commingling Mail and Why You Should Care first appeared on Three Dog Logistics.