It may be the strongest four-letter word in the English language: FREE! But given all the differences in marketing in Japan, does it lose its response-pulling power in translation?
In my experience, free offers work just as well in Japan as they do elsewhere in the world, as long as they are handled correctly. The words themselves, "Muryo" and "Tada," have the same strong impact as "Free" and "No Cost." If there is any difference, it is only in the more subdued enthusiasm Japanese consumers express towards "something for nothing." Here, then, are a few tips on how to get the most for FREE in Japan:
Just because something is free, doesn't mean it's worth having. One American publisher tried offering a free booklet on gold investment as an incentive for subscribing to his financial newsletter in Japanese. Prospects, who were unsure about the utility of his publications, knew that information on gold is already freely available from Japanese gold retailers. The booklet was perceived to have little value; the test failed badly.
By contrast, another publisher offered a free six-issue trial subscription to his weekly tabloid to induce response and the test worked quite well. Prospects could read the actual product at no risk before making a decision to buy.
Free samples work in Japan. A local pharmaceuticals company has obtained double-digit response to its direct mail offers for product samples. A U.S. airline has enrolled thousands of Asian frequent flyers in its mileage program by offering free bonus miles as an incentive for application. And a Japanese fast-food chain reportedly achieved a redemption rate of 60% to its postcard offer of a free burger.
In all of these examples, the free item is the product itself. If the value of the product has been well established in marketing communications, then the free offer can attract high response.
On the other hand, if a non-product premium is offered, the prospect must consider it to be valuable in and of itself. And it should also be related in some way to the product being sold.
A gold-plated "magic" key chain worked wonders as a response puller for one precious metals dealer. The free key chain was well documented in the advertising and pictured twice to "sell" it as a unique and worthwhile item. Being "gold" itself, the key chain related to the advertiser's primary offer of gold bullion.
As another example, for many years American Express has offered a free leather wallet as an incentive for credit card application. Japanese consumers know the market price of leather goods; the wallet has a perceived value and is related to the primary product as the proper place to carry the American Express Card.
One risk in establishing an independent value for the free offer is that the prospect may believe the price of the primary product has been inflated to cover the cost of the incentive. This may have been partly true in the case of the financial newsletter cited above, where the "free" gold booklet appeared to be just one more aspect of the subscription offer.
To overcome this perception, the free offer needs to be tied to a deadline for response. If the free item is clearly described as reward for fast action, not as an extra benefit, there is less chance that the perceived value of the primary product will be compromised. Additionally, the deadline helps to overcome human inertia by emphasizing the urgency of the offer.
A specific deadline date tends to encourage action better than a limited time period. In other words, "This name card holder is yours FREE if you apply by February 28" rather than "...if you apply within the next 30 days" or "...if you apply by the end of the month." But even a limited time period is preferable to no deadline at all. And even product-related offers such as '"Buy One Get One Free" are much more powerful when a deadline is stated. Universally, prospects tend to postpone action unless given a good reason act NOW.
As for timing of the deadline, mail order response curves in Japan seem to indicate that 90% of response to most offers occurs within 3-4 weeks of initial contact whether or not an incentive is offered, so establishing a fairly tight deadline for the free offer is usually appropriate. Deadlines have more impact when they are near; don't be shy about demanding fast response.
Of course, when orders are received shortly after expiration of the deadline, it is a good practice to fulfill the free offer anyway. The buyer will appreciate the extention and you'll avoid complaints from those who "just missed." In fact, if a previous customer calls in complaining that the free item wasn't offered when he/she last bought, it is often advisable to "reward" his/her next purchase with a similar incentive as "special" consideration for continued loyalty.
In advertising the free offer and deadline, one caution should be taken: don't let your primary product take second seat. There can be a great temptation to play up the FREE message as the main message, which should be avoided at all costs.
The free offer is like dessert, best saved until the end, such as in the P.S. of cover letters and on the order form itself. Use opening paragraphs, headlines, and the most prominent visual displays in your ad/brochure for communicating the benefits of your primary product, the main course. In this way, you'll attract real customers and prospects, not just "free-loaders," to buy and try your goods.