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The Persuasive Power of FREE, a Netflix example

By Michael Stelzner

NetflixSo this big red envelope shows up in the mail. It says “Here’s your Netflix start-up package.” My wife says, “Did you order this?” I said noooo and opened it.

I see this big coupon, made out to me—”10 FREE RENTAL COUPON.” Hmm. I read further (I was drawn in you could say).

On a single page I count 1, 4, 8—no 11 uses of the word FREE! For example:

  • YOURS FREE!
  • 10 FREE DVD rentals
  • Two week FREE trial
  • Pressure-FREE
  • Hassle-FREE
  • Shipping is FREE
  • FREE New Release Calendar (hmm. I will address this)

And list goes on and on. So it says there are some “free gifts” enclosed. One of them is a piece of paper titled “New Release Calendar” and the words “FREE GIFT!” are at the top at an angle. Not sure this really qualifies as a free gift.

I was about drawn to take them up on their offer of 10 free DVDs—until… I noticed I only had 2 weeks to watch them! Hmm. Doesn’t sound like that great of an offer to me. Considering summer is about over, this must be Netflix’s way up drumming up business.

Overall, I counted the word free used 24 times across the 4 pages and the envelope this offer came in. Oh, and if you want to take them up on the offer, check out http://www.netflix.com/Register.

My guess is this campaign will be a big success. What do you think about the value of free?

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This entry was posted on Monday, August 28th, 2006 at 5:21 am and is filed under Lead Generation, Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

  • You have to admit though that the Netflix concept is a pretty attractive proposal.

    Apart from I'm curious how much of my monthly rental is going to shipping I'm sold.

    Though it is a technology advantage only that they have. With Akimbo, dave tv etc it will only be a matter of time before the percentage of TV hours of on demand viewing strips the broadcast numbers away.

    And with comcasts try at 'networked' dvr even more so.

    Though you have to hand it to Netflix for trying new campaigns, this pre tv broadcast campaign is genius depending on the takeup rate
    http://deancollinsblog.blogspot.com/2006/08/tai...


    Cheers,
    Dean@cognation.net
  • Hi Michael, One place that's been using "free" the right way lately is Starbuck's. A few days ago they gave me a coupon for a free drink if I filled out an online survey. Next day--free cup of coffee. Then, a few days later, they gave me a coupon that profiled the South American grower who supplies their House Blend beans offered a free cup of it. Next day--free cup of coffee. Easy. Fast. Simple. Genuine.
  • Hey Chris - Good point. However, in most cases these days free means a free trial. After that you are locked into a monthly payment. - Mike
  • Michael,

    I don't like when the "free" word is tossed about but in order to get whatever they say is "free" you have to purchase something else. In those cases the item offered isn't free - it's complimentary.

    Free to me means I can walk in, grab the item and walk out without other strings attached. Right? Or am I just a little off my nut on that one?
  • Hey Brad;

    Good point. When I started seeing a lot of frees, as a marketing guy, I looked for the fine print. Despite the many frees, there was plenty of other text that made it less noticeable to the untrained eye.

    However, my offer did end up in the recycle bin. Why, because I only had 2 weeks to watch 10 DVDs. That part was kinda hidden in plain sight and over powered by the free offer.

    Mike
  • They say that "free" is the most persuasive word in advertising. That may well be true. Everybody is looking for a deal. But "free" can also arouse suspicion. Personally, I don't mind a cheesy come-on PROVIDED there is underlying value in the product or service. But I know a lot of people who can't get past the style of the message. They are wary of being sold. In your Netflix example, I'll bet a lot of people would see all these "FREE"'s and immediately conclude, "There must be a catch." Into the trash it goes.
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