The Mulitiplier of Free- can small acts of economic “gifting” pay big dividends?

If you follow me on Twitter You know I recently was in California visiting the family, friends and basically enjoying a brief break from Boston (which, come February is hellishly cold with a side of bleak.)

On my way to Cali, while laid-over at Chicago-O’Hare, I took it upon myself to try and slip in a bit of work. Powering up my ever-awesome Macbook, (which I should probably name Delilah.) I was shocked that I couldn’t connect to any Wi-Fi. Correction: I couldn’t connect to any FREE Wi-Fi.

Some Boingo wireless company had the BALLS to ask $6.95 for 24 hours of Wi-Fi. Great if I had 24 hours to kill but I only had maybe 2- 2½ hours before my connector to John Wayne.

Image from andyabramson.blogs.com

I was shocked. I was insulted. Plus, I was getting really annoyed. 

Little backstory: genetically I’m part Scottish. At a start-up company. And though my mostly French side  (merci petite Maman!) would totally pay $250 for a pair of kick-ass Juicy wedge cork heels, the Scottish lassie in me is like “$6.95 for 2 hours of freakin’ Wi-Fi access?”  

Are they high?

I just paid hundreds of dollars to fly, had an intimated moment with an airport security matron named Gloria (and she didn’t even call later,) shelled out about $2.00 more than normal for my Starbucks and muffin at the airport kiosk, and NOW I have to pay over $6 frackin‘ bucks to get my email and maybe work on a blog post.

You know how this ends.  Ticked off, I whipped out my iPhone*and  managed to get THAT MUCH BETTER utilizing one of the most dazzling pieces of technology that has come out since Laser hair removal… and Botox (or so I hear.)  

Aside: I’ve actually told my husband that, outside of his love, the children and my wedding rings, my iPhone is the nicest thing he’s ever given me. True story.

So back to blog… Before my iPhone workout I, of course asked around, not believing this Wi-Fi debacle to be true, and found that the airport Starbucks I just tithed to didn’t offer free Wi-Fi.

“But Starbucks always has free** Wi-Fi,” I whined. It’s like a deal — I buy your obnoxiously over-priced ground bean & water concoctions and I get Internet access, gratis.  And I’ll probably be back for seconds. Happily. Skipping with cash in hand.

This got me to thinking…

Other business people seemed resigned to the fact that they need to pay for Wi-Fi.  Which for almost $10 a month, at a number of airports & hotels, Boingo seems like a deal for hard-core travelers.  But what about the majority of us that don’t travel as frequently?  My thought is that, for the cost of tickets, the indignity and hassle of airport security, the overpriced food and drink, asking the extra $6 to send some emails seems a bit rude.

Coversley, knowing what I know now …what would happen if I found an airport (or any establishment for that matter) that offered free Wi-Fi?

I’d be more apt to patronize that establishment. Ticket my lay-over there, where of course I’d eat, drink, and buy my secret trashy airport mags (US Weekly being one fave.) This also led me, remember I DID have a couple hours to kill,  to think what would happen if more businesses offered Wi-Fi for free? Those establishments would be more attractive to patronize but there would also be a hidden multiplier effect at play.  For every $1 spent of offering free Wi-Fi I wondered how many MORE dollars would A) the establishment receive; and B) would the economy get as a result from being able to do business and shop Amazon.com to our hearts content?

Don’t underestimate the “trickle down” effect that something as simple as free Wi-Fi might do. I stand by my Starbucks (or Panera Bread) example, go to anyone in a metropolitan area– besides over-caffeinated souls, you’ll see something else transpiring…business. A favorite of start-ups, students, consultants, and others, free Wi-Fi areas are both a gathering place -a respite, and a place of commerce. How many times have I had to squeeze in a moment, on the run, to send a business email, buy a book, or last-minute gift online? Every dollar spent on providing Internet access probably pays back many times more*** for the host and the economy at large.  

That is an amazing concept to get behind AND to replicate.

It’s a shame O’Hare doesn’t want to pay for Wi-Fi. Instead of the Boingo popping up (nice little reminder that you’re captive & “we’re going to nickel & dime you whenever possible,”) the open page could be a customer-friendly “We are happy to offer you free Wi-Fi while you’re waiting for your flight” with a helpful terminal map, including food & beverage offerings. The airport vendors could chip in, and I know I’d feel a lot better paying for the $9 sandwich if I knew that a portion paid for my access to my email.

My 2 hours really seems so small, so trivial,  but it was the tipping point of my trip.  Given that long day of travel, I already felt put upon (Gloria, seriously I thought we had a “moment” during the pat down) and, looking back at the game reel, Chicago O’Hare had a real opportunity to make me a fan. They chose not to. 

So can this example be extended to other arenas?****  To your business? Others? What if there were more establishments that “gifted” their customers or clients with something outside of shampoo samples? What other opportunities to offer customers something, that in turn benefits both you AND the economy long-term?  That is the challenge, but if you can figure out how — you have a fan. A fan that will most likely return and refer their friends.  The multiplier of “Free” is a solid PR and marketing technique.

You could just call it “gifting” with a side of good economic Karma.

* Now with the advent of iPhone 3.0 Boingo might be worried (tethering is one of the new features.)

** not necessarily true I found out later

***I couldn’t find a study on this but if you find one, let me know.

**** I was reminded of the policy of free soft-drinks to “designated” drivers at bars. A GREAT example both as an economic (and karmic) multiplier. In college, we’d specially target those bars (and bartenders) that followed this practice.