Free Prize Inside: The Next Big Marketing Idea
Key Takeaways
Soft Innovation vs. Hard Innovation:
Hard innovation involves high-cost, high-risk R&D (like inventing a new drug), while soft innovation is about changing the presentation, packaging, or delivery of an existing product.
It focuses on clever, low-cost tweaks that make a product feel new without reinventing the underlying technology.
By prioritizing these small changes, companies can innovate more frequently and with significantly less financial risk.
The “Free Prize” Concept:
A “free prize” is a built-in feature of a product that provides unexpected value or joy to the customer.
It is the “extra” thing—like the toy in a cereal box—that transforms a commodity into something remarkable and worth talking about.
This element serves as the primary hook that captures consumer imagination and drives brand loyalty.
Remarkability is Key:
If a product is not remarkable, it is invisible; marketing alone cannot save a boring product.
Being “very good” is no longer enough because “very good” is now the expected standard and thus unremarkable.
Truly remarkable products act as their own advertisement by naturally drawing attention in a crowded market.
The Death of Mass Marketing:
Traditional advertising is becoming less effective and more expensive, shifting success toward word-of-mouth and “sneezing”.
The old model of buying attention is broken because consumers have developed a “filter” to ignore standard ads.
Modern success relies on creating ideas so infectious that customers feel compelled to spread them to others.
Innovation is Everyone’s Job:
Innovation is no longer restricted to the R&D department; anyone in an organization can find ways to make a product better or more interesting.
Front-line employees often have the best insights into what “free prizes” would actually delight the customer.
Encouraging a culture where every staff member is an innovator prevents the creative stagnation that kills large companies.
Championing the Idea:
To succeed with soft innovation, you must become a “champion”—someone who takes responsibility for an idea and pushes it through organizational hurdles.
Ideas are fragile and will die without a dedicated individual willing to defend them against internal skepticism.
A champion doesn’t just suggest an idea; they shepherd it from the initial concept to the final, launched product.
Overcoming “The Edge”:
Most organizations have a natural resistance to change, so champions must navigate this “edge” by building alliances and proving value incrementally.
“The Edge” represents the boundary where the company’s comfort zone meets the unknown risks of innovation.
By managing this friction carefully, a champion can introduce radical ideas without triggering the organization’s defensive “immune system”.
Edge-Craft:
This is the practice of finding the boundaries of what is standard in your industry and pushing just beyond them to stand out.
It requires identifying specific attributes of a product—like size, speed, or service—and taking them to a remarkable extreme.
By operating at these edges, you differentiate your brand from the “mushy middle” where most competitors reside.
The “I’m Not the Boss” Problem:
Many people feel they cannot innovate because they lack authority, but you don’t need permission to be a champion of a good idea.
Waiting for a promotion to start innovating is a trap; real leaders use their current influence to effect change regardless of title.
Influence and social capital are often more powerful than formal authority when gathering support for a new “free prize”.
Selling the Idea Internally:
Internal “selling” is as important as external marketing because most ideas die inside the company before they ever reach the customer.
You must treat your colleagues and managers as a target market that needs to be convinced of the idea’s merit.
Success requires understanding the internal politics and motivations of the people who have the power to say “no”.
Safety is Risky:
Focus on the “Sneezers”:
Identify the core group of customers—the “sneezers”—who are most likely to tell others about your product and design your “free prize” for them.
These “sneezers” are the influencers who have the authority and reach to spread your “idea-virus”.
If you try to appeal to everyone, you will end up appealing to no one, especially not those who drive word-of-mouth.
Design as a Competitive Advantage:
Good design is a form of soft innovation that can make even a functional product remarkable.
Design isn’t just about aesthetics; it’s about the entire experience of how a product is used and perceived.
A well-designed “free prize” provides a visceral connection that makes the product more shareable and memorable.
Small Innovations Add Up:
You don’t need a breakthrough invention; a series of small, soft innovations can create a massive cumulative effect.
Frequent, small wins are often more sustainable and less disruptive than a single massive overhaul.
This “iterative innovation” keeps the brand fresh and constantly gives customers something new to talk about.
A great product tells a story, and the “free prize” is often the tangible part of that story that customers share.
People don’t just buy products; they buy the stories those products allow them to tell about themselves.
The “free prize” provides the “proof” or the “hook” that makes the story worth retelling to a friend.
Embrace Boredom:
Use boredom with the current status quo as a catalyst for finding new soft innovations.
When you or your customers become bored with a product, it is a clear signal that the current “free prize” has lost its power.
Boredom is the precursor to irrelevance, making it a powerful motivator for immediate creative action.
Don’t Be Afraid to Fail:
Not every soft innovation will work, but the cost of testing them is low compared to hard innovation.
A culture that punishes small failures will eventually suffer from a catastrophic lack of new ideas.
You should aim to “fail fast and cheap” so you can quickly move on to the next potential “free prize”.
The Role of Passion:
A champion must be genuinely passionate about the idea to withstand the inevitable pushback from the organization.
Passion is the fuel that allows a champion to keep selling their idea after the initial excitement has faded.
Without this deep belief, the administrative friction of a large company will eventually grind the idea to a halt.
Context Matters:
Look outside your own field for inspiration, as a “free prize” in one industry might be standard in another.
Cross-pollination of ideas is one of the fastest ways to find a “remarkably” new approach for your specific market.
By applying a common practice from a different world to your own, you create instant remarkability.
Stop Whining, Start Leading:
Instead of complaining about a lack of innovation, take the initiative to lead a small project that proves it can be done.
Whining is a passive act that reinforces the status quo, while leadership is an active choice to create a new one.
One successful, small soft innovation can change the entire internal conversation about what is possible.