SAN FRANCISCO, CALIFORNIA--(Marketwire - Sept. 20, 2012) - TikTok, the world's largest free deals mobile application, has quickly emerged as one of the leaders in the freeconomics movement. Freeconomics is a term coined in recent years to describe the strategic giving of goods or services in anticipation of spurring sales. While the term freeconomics was originally a product of internet marketing, the model actually began with businesses like Gillette, who offered free safety razors as a way to stimulate sales of their proprietary blades. Now businesses including McDonald's, Starbucks and 7-Eleven have adopted the strategy of giving away a free product as a leverage point to acquire new customers. Initial research from such free promotions have shown a spike in sales followed by an overall increase in sales in the following months.
With freeconomics quickly gaining momentum among food, retail and even service-based businesses, popular new services and applications are emerging to make getting a free deal as accessible as possible. TikTok, is an example of free-to-use, mobile application offering deals in San Francisco and other major markets in North America. The application allows businesses to push out their own daily free offers to nearby users. With hundreds of participating companies pushing deals through its platform, TikTok has become a consumer favorite in the freeconomics movement.
TikTok CEO, Dorian Banks, shares, "Giving away a free product for a limited time has two positive effects. First, it drives traffic to your store, and increases the chances that a consumer will purchase a supplementary item. Secondly, it generates a larger pool of potential customers, who now have additional brand loyalty. This is showing positive long-term impact and a rise in sales".
The freeconomics model is ideal for companies wishing to build awareness, launch a new product, or increase business during those lagging times of the day, and often do result in new, loyal customers. Katie Reiach, customer of Cako, a San Francisco cupcake retailer explains, "I had never been to Cako before, but decided to give it a try when I saw they offered a free cupcake through TikTok. Since then I've used them to cater a friends birthday party".
As more companies become aware of the effectiveness of the freeconomics model, the TikTok application, popular for its simplicity and ease of use, is fast being positioned as the single preferred tool within this movement.
TikTok is the new evolution of the "daily deal"! TikTok is a free mobile application that provides businesses with the ability to create instant FREE offers, daily. The limited-time FREE offers are available to anyone with the TikTok application, and provide businesses with free brand exposure to new and old clientele with an immediate return. To learn more, visit https://www.tiktok.com/.