Are Free Samples Retail’s Best Underused Tactic?

Insider and others have reported that free samples are making a return to the aisles of Costco and expanding into more supermarkets.

During the pandemic, Costco completely shut down its allocations of free samples but eventually resumed and served them prepackaged behind plexiglass. In the middle of 2021, around 170 out of the company's estimated 550 locations brought back full pre-pandemic food samples.

Since free samples have been part of Costco’s successful allure for decades, it’s surprising that this strategy hasn’t been adopted more liberally by retailers. But it looks like that’s about to change.

The prevalence of samples has now reached a point where TikTok users have shared how they are able to make an entire meal out of Costco samples.

Additionally, alterations in the advertising market have provoked a rekindling of interest in samples among brands. Several brands have reported that paid online ads aren't as effective as they used to be. This has led some to start distributing their products for free to potential customers, aiming to attract first-time buyers, according to Bloomberg.

Dude Wipes, for example, is not only using Freeosk dispensing machines in Sam's Club locations to give away individually wrapped wipes — it's also compensating people for handing out packs of wipes at Target. Brands like Oreo producer Mondelez International are also increasing their reliance on samples to "raise awareness about new and seasonal products," Bloomberg noted. On the retail front, Walmart is expanding its free sample distribution to 1,000 locations, while supermarket operator Wakefern Food Corporation is installing free sample vending machines at 95 locations.

But do free samples really work? After all, Target has experimented over the years with free food and beauty product samples, but the vast majority of Target stores no longer offer any samples.

However, others have seen success with this tactic. After Snack Factory, the creator of Pretzel Crisps, started giving out samples, the company's VP of marketing, Perry Abbenante, said that "the conversion rate of the sampling efforts was between 25 and 30%, meaning that at least a quarter of those who tried a free sample ended up buying the product," according to Lightspeed.

From a psychological standpoint, samples serve up a sense of desire and reciprocity. Research has shown that giving out free samples can create a sense of loyalty, enhance the shopping experience, and stimulate hunger.

One last interesting development to note is how AI and technology are reshaping free samples. Allrecipes shared that Costco shoppers are starting to notice “the rollout of new self-service sample stations, which will likely replace the human-hosted kiosks.” Initially, this move hasn’t been to cut in-house costs since sample attendants are employed by a third-party company, Club Demonstration Services. Instead, the new technology may be a result of the labor shortage in the United States.

The new autonomous snack stations, resembling large storage vaults with openings on every side, seem designed for packaged snacks rather than fresh or hot foods. This style of dispensing may therefore offer fewer options for Costco customers.

There are also concerns that customers may not honor the "take one" policy displayed in clear instructions on these stand-alone stations. The prior system allowed customers to take as many samples as desired, but abuse was limited due to human monitoring. In contrast, these unmanned stations offer unregulated access, and some customers have already confessed plans to grab "handfuls" of samples.