Each individual with a mobile phone carries more technology in their hand than took us to the moon. Digital services have remarkably changed and revolutionalized the way we make our daily purchases. Freeconomics (An informal term to describe the giveaway of goods or services in anticipation of rising sales and profits in the long run) has become a huge part of our lives today and has turned into something we can barely live without.
Today, we find ourselves in a world where we rarely have to pay the full price for anything we purchase. Young start-ups and competing companies have gotten into – what I would like to call – a Rat Race for customer acquisition.
Freeconomics impacts our lives in every aspect, be it food delivery, travel, payments, grocery shopping, or just about anything we require as part of our daily routine. Like never before, today you can subscribe to vehicles, movies and TV shows, or even things as bizarre as furniture!
Everything a millennial once dreamt of having is being served to them on a well-decorated plate today – all thanks to Freeconomics.
Gen Z (As today’s millennials are commonly referred to), according to a study, are more rational decision makers than their previous generations. Gen Z, even though are heavily influenced by their peer community, are very selective while taking decisions.
Although Gen Z does spend a lot of money on what matters to them like watches, shoes, the latest gadgets etc., trends show that they care less about expensive material possessions and more about great experiences like travel, good food, etc.
Digital services see huge potential in this millennial mindset and bombard them with offers and discounts to acquire them as their customers. The biggest challenge, however, for companies today is that Millennials expect much more, in terms of quality than what they are willing to pay for. Today’s youth believes in making meaningful deals instead of getting lured by anything and everything that’s on sale (Most likely, a result of excessive freeconomics). According to a study, most individuals wouldn’t mind paying slightly extra for a service if they see more qualitative or quantitative value in the higher priced package.
Today, we pay less for food, for travel, for daily needs, for communication, for entertainment and for just about anything we require.
If you’re hungry – there are tons of different discounts and offers waiting for you in the many competing food delivery services.
If you want to travel, you have an option to book a cab, or pick a self-drive vehicle from one of the nearby docks – and all garnished with tempting cash-backs and discounts, which make the services not just cheaper, but sometimes also free of cost!
It’s well said that A Millennial’s route to free riches today, is a “Referral Code”!
A very interesting story I read on the 1843 Magazine spoke about how an entrepreneur took advantage of Uber’s referral program and earned loyalty points enough to last a year!
A techie named Felix figured out a way to get free rides from Uber. The Bay-area entrepreneur took advantage of Uber’s discounts for users who refer to friends. Felix spent $600 and placed ads on Google, listing his referral code from Uber in each ad. “He spent hours fine-tuning his approach until his ads often had a higher click-through rate than Uber’s own. For each person who signed up to Uber’s service through his ad, he received credit. He eventually amassed $30,000 in credits, which allowed him to ride around the city in Uber’s cars and eat three square meals a day from UberEats, the company’s food-delivery service, for a whole year without paying a cent.”
Written by: Anurag Bansal