ROI of Branded Merchandise: Is it Worth it for Your Business?
Autor: Sarah Roberts
Marketing budgets are increasingly tight, but growth is just as important as ever, so it's become a balancing act in which the ROI of branded merchandise campaigns need to be justified to the boardrooms.
So, how do you know if your branded merch is cost-effective enough?
Well, there are a few key factors to consider. With that in mind, let's dive into the ROI of branded merchandise and whether it's worth it for your business.
Key Takeaways
Branded merchandise delivers measurable ROI by increasing brand recall, customer loyalty, and repeat engagement.
Compared to traditional advertising, merchandise often provides longer-lasting exposure at a lower cost per impression.
Choosing items that are practical, high-quality, and aligned with your audience ensures a stronger impact and better return.
ROI can be tracked through metrics like lead generation, repeat orders, and brand recognition in customer surveys.
Why Branded Merchandise Works (The Tangible ROI)
Branded merchandise is a smart way to get measurable ROI while driving leads and increasing revenue.
Metrics like cost per impression (CPI), brand recall, and customer retention rates show just how effective it can be. It turns visibility into real results, making it a powerful tool to align your marketing budget with business growth.
Here's how these measurements back up your investment and help you get the most out of it.
Cost-Per-Impression
Branded merchandise offers a much lower cost-per-impression (CPI) compared to digital advertising methods like PPC or social media ads.
Items like pens, tote bags, or mugs provide long-lasting visibility for your brand because they are reused frequently.
For example, a branded tote bag, like our Spirit Jute, can be seen by hundreds of people as it’s carried around, and a pen may pass through multiple hands, each time showcasing your logo or message.
In contrast, digital ads like pay-per-click (PPC) or social media campaigns have a limited lifespan, running only as long as the campaign budget lasts.
While they can quickly reach a large audience, their CPI is often higher due to competitive bidding and short-term visibility.
Branded merchandise, on the other hand, delivers ongoing exposure at a much lower cost, making it a smart investment for businesses seeking long-term marketing results.
Longevity & Recall
Branded merchandise lasts much longer than fleeting digital ads, often sticking around for months or even years. This longevity keeps your brand visible to recipients, providing repeated exposure over time.
According to the Ad Impressions Study by the Advertising Specialty Institute (ASI), 63% of people would keep and use promotional branded drinkware for a year or longer. Additionally, 44% say they’re likely to keep and use a custom-branded USB drive for 2 years or more!
These numbers show that branded merchandise not only leaves a lasting impression but also boosts brand recall and builds customer loyalty.
Driving Action & Sales
The study mentioned above shows that consumers are more likely to do business with a brand after receiving branded merchandise.
Promotional items create a physical connection with the brand, building trust and goodwill. When a customer gets a useful item like branded drinkware or tech gadgets, it leaves a positive impression of the brand’s quality and attention to detail.
Well-chosen merchandise can also help convert leads into loyal customers. Personalised items that match the audience’s needs or interests boost engagement and keep the brand top-of-mind.
For example, a branded notebook given during a pitch or a custom power bank at a trade show shows thoughtfulness and adds value. This makes potential customers more likely to choose that brand when making decisions.
The Intangible ROI: The Value You Can't Put a Price On
While tangible ROI, such as increased sales or lead generation, is often the primary focus, branded merchandise also delivers invaluable intangible benefits, helping to keep you top-of-mind.
Although harder to measure, these contribute significantly to long-term brand success and include:
Brand Awareness & Recognition
Branded merchandise serves as a "walking billboard" extending your brand's visibility and reach far beyond traditional marketing channels.
When individuals use or wear customised items featuring your logo or message, they naturally showcase your brand to their personal networks, creating organic, real-world impressions.
Whether it's a tote bag carried to the local market or a branded water bottle, like our Mix Shaker Bottle, brought to the gym, these items spark curiosity, conversations, and recognition.
It's worth noting that in the age of social media, branded merchandise often becomes part of user-generated content.
A well-designed product can inspire customers to share photos or testimonials online, amplifying your brand recall and your online presence and engaging new audiences in an authentic way.
Customer Loyalty & Emotional Connection
A thoughtful gift, like branded merchandise, can create a strong emotional connection between a business and its customers. When customers receive a high-quality, personalised item, it shows the brand values their support and sees them as individuals.
This sense of appreciation builds trust and goodwill, strengthening the relationship between the customer and the company. Branded merchandise also serves as a daily reminder of this positive experience, keeping the brand top of mind.
Over time, these emotional connections lead to greater customer loyalty, driving repeat purchases and advocacy.
According to the ASI study we mentioned above, 41% of people who receive outerwear (like a branded cap) are more likely to do business with the company that gave it to them.
When customers feel valued and connected to a brand, they’re more likely to stay loyal, even in competitive markets. This strengthens Customer Lifetime Value (CLV) by boosting long-term engagement and retention, benefiting both the customer and the business.
Thoughtful gifts aren’t just transactions, they’re investments in trust and lasting relationships.
Employee Engagement & Company Culture
Branded merchandise can boost employee morale by showing appreciation and recognition. When employees feel valued, their loyalty to the company grows, leading to better retention and workplace satisfaction.
Providing items like branded apparel, accessories, or practical tools helps employees feel connected to the organisation and its mission. These items serve as symbols of belonging and unity, creating a positive connection with the company.
When employees use or wear branded merch, they naturally become proud brand ambassadors.
It’s a win-win.
It boosts the company’s reputation and creates a sense of appreciation, making employees feel like a key part of its success.
How to Measure the ROI of Your Merchandise Campaign
Measuring the ROI of branded merchandise marketing campaigns is essential to ensure your efforts are yielding the desired impact and providing value for your investment.
By tracking ROI, organisations can gain valuable insights into the effectiveness of their merchandise strategies, identify areas for improvement, and justify budget allocations.
Without measurement, it can be challenging to determine whether the campaign is genuinely contributing to brand awareness, employee engagement, or customer loyalty.
To measure the ROI of branded promotional items, there are several methods that organisations can employ:
Tracking Direct Responses: Include unique QR codes, custom URLs, or specific discount codes on promotional items. This lets you monitor how many individuals engage with these tools and follow through with actions, such as making purchases or visiting your website.
Customer Feedback and Surveys: Conduct post-campaign surveys to assess how recipients perceive the items and whether they associate them positively with your brand. This qualitative feedback can provide useful insights into the campaign’s success.
Engagement Metrics: Monitor the level of engagement on social media when branded merchandise is shared or featured by recipients, employees, or influencers. Metrics such as likes, shares, and comments can help gauge the visibility and appeal of your items.
Sales Growth: Analyse sales trends after the launch of a branded merchandise campaign to establish whether there is a correlation between the campaign and revenue increases.
Cost-Per-Impression (CPI): Determine how many people have been exposed to your promotional items and calculate the cost per impression. This can provide a clearer idea of how far-reaching and cost-effective your campaign has been.
Retention Rates and Loyalty Metrics: Assess customer or employee retention rates over time to determine if branded merchandise enhances loyalty and strengthens long-term relationships.
By combining these methods, organisations can thoroughly evaluate the performance of their branded merchandise campaigns and refine their strategies to maximise future results.
Maximising Your ROI: Best Practices for Success
To ensure the greatest return on investment (ROI) from your branded merchandise campaigns, consider adopting the following best practices:
Choose Low-Cost, High-Impact Items
Opt for merchandise that’s affordable but provides significant branding opportunities. Items like reusable tote bags, branded pens, or water bottles are cost-effective and highly functional, ensuring regular use and visibility of your brand.
Tailor Merchandise to Your Audience
Understanding your audience is essential. Select products that resonate with your target demographic, ensuring that the merchandise is both appealing and practical to recipients.
Leverage Trade Shows & Events
Trade shows, conferences, and industry events present ideal opportunities to distribute branded merchandise. Offering free products like lanyards, notepads, or USB drives encourages engagement with potential clients and enhances brand exposure.
Focus on Quality Over Quantity
Cheap or poorly made promotional items can reflect negatively on your brand. Investing in durable, high-quality merchandise ensures a more positive perception and longer-lasting impressions.
Include Branding That Aligns With Your Identity
Ensure that your company logo, tagline, and colours are prominently and attractively displayed. Branding should be clear yet subtle enough not to deter recipients from regular use.
Track & Measure Performance
Incorporate strategies to measure the impact of your merchandise, such as collecting feedback or using unique QR codes on products to track engagement. This data can help fine-tune future campaigns.
Adapt to Eco-Friendly Trends
Sustainable merchandise, such as items made from recycled materials, appeals to environmentally conscious consumers. Green products reflect positively on your brand and align with modern values.
By following these best practices, organisations can create impactful branded merchandise campaigns that appeal to their audience, build loyalty, and maximise ROI effectively.
Invest In Branded Merchandise With Flashbay
At Flashbay, we offer a wide range of customisable merchandise designed to suit your branding needs. Our products are available at competitive prices, ensuring exceptional value for your investment.
With our fast turnaround times, you can start leveraging your promotional products to generate leads and revenue in as little as 5 days.
Whether it’s USB drives, water bottles, tote bags, or pens, our extensive selection and commitment to quality make us the ideal partner for your branded merchandise campaigns.
Kick start your most profitable marketing campaign yet with a FREE quick quote and get started with your dedicated account manager today!
FAQs
What is the Value of Branded Merchandise?
Branded merchandise enhances brand visibility, builds customer loyalty, and creates lasting impressions. It’s a cost-effective marketing tool that promotes brand recognition while offering practical value to recipients, ensuring your business stays top-of-mind with your audience.
Does Branding Add Value?
Yes, branding adds value by creating a distinctive identity, building trust, and fostering emotional connections with customers. It enhances perceived quality, drives loyalty, and differentiates your business from competitors, ultimately increasing customer retention and long-term profitability.
When Will My Branded Merchandise Be Delivered?
Delivery times can vary depending on the products you order, but typically, we ship orders within 5-7 working days of placing them.
Speak to your account manager for more specific time frame information.
Is Flashbay Branded Merchandise Affordable?
Yes, Flashbay offers branded merchandise at competitive prices without compromising quality. We provide options to suit various budgets, ensuring affordability for businesses of all sizes.
Contact us to discuss your specific requirements and receive a tailored quote.
Autor: Sarah Roberts
