The ROI of Branded Merchandise: Unveiling Its Impact and Measurement

What’s the real ROI on branded merchandise, how do we know it works and how can we measure it.

In today's fast-paced marketing landscape, establishing a robust brand presence is essential for businesses aiming to thrive. The challenge lies in recognising the diverse ways consumers engage with brands across multiple channels, from social media right the way through to physical stores. Your audience is dispersed far and wide, making it crucial for businesses to adapt their marketing strategies accordingly. Multi-channel marketing is the key to staying top-of-mind, relevant, and maximising reach in an increasingly competitive marketplace.

Amidst the digital overload, there's a important ally that can complement your marketing efforts and leave a lasting impression: branded merchandise. When executed correctly with desirable and sustainably sourced products, branded merchandise can create unforgettable moments that forge strong, emotional connections with your target audience.

‘Branded merchandise is a $50billion industry worldwide and we need to ask how can its impact be measured’.

GWP (Gift with purchase) is completely transparent in terms of the ROI. Consumer brands promote products and service with and without a gift and the results are easy to measure. Its why cosmetic, beauty and luxury brands create so many gift packs and packaging for Christmas promotion. Its why drinks brands use VAPS (Value added products and services) in various channels such as travel retail.

It’s the value-add element that consumers buy into, it incentivises the customer to make the purchase.

But how do we quantify the more intangible benefits of using branded merchandise, how can brands make intelligent decisions on their marketing spend in this area?

The research

There is whole myriad of research from industry bodies which measures the impact of branded merchandise.

A few research snippets for you to consider :

Customers who receive branded merchandise are 75% more likely to buy from you again.
Over 75% of consumers receiving a branded item from a brand they trust will prompt future purchases.
80% are more like to make recommendations to others about your brand or service.

Source BPMA

The economics speak for themselves.

Consider the impression created from just one branded backpack costing €20.

Leaving any facts and figures aside we really need to consider the emotional , connection created through the experience of giving and receiving a gift.

The pleasure, we all get when choosing and giving for a gift to a friend, family member, or colleague and equally how valued we feel when we receive one cannot be underestimated. The emotional connection this creates help us understand the true value of branded merchandise.

As a new salesperson in my first job, at Pitney Bowes I received a leather-bound road atlas (long before google maps were created) at Xmas from our leasing company as a thank you for all the business I had generated that year. The feeling that they cared, and the recognition this created made me feel valued and loyal to that service provider.

I had a choice. The impression they made was long lasting. 40 years later I still remember it.

Since then, the items that people gift have changed but the sentiment and emotional connection it builds remain the same. Thoughtful well considered gifts go well beyond their material value.

Harnessing the Power of Brand Merchandise and making intelligent choices.

Before diving headfirst into the world of brand merchandise, it's vital to understand its benefits and select the right tools for the job:

We take our time choosing the right gifts in our personal life, we think about what they would like based on their age, potential interests, and social groups, in essence their demographic.

It’s harder when you don’t know the individual, but the principles are the same, know your target audience and decide what works. If the merchandise you give away is of relevance and value to the recipient it will be used, help build that emotional connection.

Some important principles to keep in mind:

1. Building Brand Awareness.

Effective branded merchandise embodies your brand, values and culture in tangible forms. Unlike traditional advertising, these are products that people want and incorporate into their daily lives. Think organic cotton clothing or a well-designed backpack – these items you use every day and enable people to proudly display their support for your brand, introducing you to a new audience every time they are used.

When you successfully create this level of engagement, investing in this area unlocks a new range of situations and moments, inaccessible to your digital marketing but equally as valuable.

The role of influencers today is huge. Placing merchandise in their hands, creating the unboxing experience sometimes in a live scenario can create the aspirational value associated with the brand you are promoting.

2. Employee Engagement

Supporting your team with high-quality brand merchandise fosters a sense of belonging and shared connection among employees. Custom-designed, trend-led clothing can instil pride, while carefully curated welcome packs for new employees kickstart relationships on the right note. Given that replacing an employee can cost up to £12,000, cultivating loyalty among your staff becomes a valuable investment, especially in today's competitive job market. Creating advocacy amongst staff, not just loyalty is important. Surprise and delight and keep them engaged, it helps turn them into ambassadors for your business.

3. Event Activations

In the hustle and bustle of live events, conventions, and conferences, numerous brands vie for attention. Stand out in the crowd with branded merchandise that captures eyeballs throughout the venue. Highly visible, wearable items like bags and clothing pique interest as attendees move about. Cost effective giveaways, which can still be useful and sustainable offer audiences a tangible takeaway that leaves a lasting impact.

Make it interactive with on-site printing or personalisation, whilst incorporating digital elements like QR codes or augmented reality can also extend engagement online and across social media, amplifying your message further.

Striking the Right Balance

While brand merchandise has immense potential to elevate your brand, it must be executed properly. Poor-quality, unwanted, and unsustainable products are no longer acceptable in the eyes of consumers who demand ethical and sustainable practices. Collaborating with a trusted merchandise partner can help you avoid pitfalls and maximize returns on your investment. Here are some tips for getting it right:

1. Make It Meaningful.

Every relationship is unique and this needs to be understood to make a memorable impression. Really think about your audience and what matters to them. Aligning your brand message with these personal values you will connect on a much deeper level. After all, shared interests are the foundation of strong relationships, so choose products that hold meaning for both sides. Whether your audience values thrill-seeking and exploring the outdoors or focusing on well-being and relaxation at home, think creatively and select products that support these values in a way that is true to your brand.

2. Make It Desirable.

Merchandise has gone through an overhaul in recent years with a shift in focus from low-cost ‘throw aways’ to covetable ‘must haves’. To get it right, do your research and understanding the latest trend forecasts to guide your decisions, provided they resonate with your target audience and location. With a range of trend-led items, you can amplify the demand and excitement further by releasing merchandise in seasonal drops or limited editions.

3. Make It Sustainable.

Sustainability is no longer an optional extra but a necessity for brands looking to build lasting relationships with customers. Studies show that nearly 9 out of 10 consumers are willing to buy more sustainably, even if it comes at a higher cost. However, consumers are quick to call out brands for disingenuous greenwashing. Embracing sustainability in meaningful ways is essential to winning trust. Innovative approaches to waste, such as Nespresso's repurposing of coffee capsule waste into high-quality products, showcase a commitment to responsible action.

In a world where brands interact with their audiences through more touchpoints than ever before, brand merchandise emerges as a potent tool to support your multi-channel marketing strategy. At Brand Addition, we simplify complexity and spread awareness and joy in memorable, eco-friendly, and cost-efficient ways.

Ready to embark on your journey with effective brand merchandise? Get in touch today and let us help you make a lasting impact on your audience.

David Landes is the Global Sales Director at Brand Addition and has worked in the branded products industry for over 30 years working with some of the world best known brands.