Merchandise
Browsing through our work, it’s not hard to tell that we believe wholeheartedly in the impact of well-designed branded merchandise. Crafted thoughtfully and strategically, a branded merchandise program can be a vital component of marketing strategies for companies seeking to build and sustain a strong brand presence.
The value of branded merchandise extends beyond mere promotional giveaways; it serves as a tangible connection between a brand and its audience, reinforcing brand identity, recognition, and loyalty. Yet, for many companies, it remains unconsidered or an afterthought.
Leading brands understand the purpose, power, and effectiveness of branded merchandise. With recall rates as high as 85%, merchandise branding is by far the most efficient and cost-effective method of advertising your brand. Quality promotional products have an average keep rate of 1-2 years, and according to Nielsen and OAAA data, merchandise offers the best number of impressions for every dollar spent.
The Purpose of Branded Merchandise
Good quality, custom-branded merchandise serves multiple purposes for brands.
Brand Awareness: Branded merchandise most obviously increases your company’s visibility and awareness. When consumers use custom products bearing a company’s logo or slogan, they create continuous exposure to the brand—for both themselves and others.
Loyalty & Affinity: Gifting or selling custom-branded merchandise boosts customers’ affinity for your brand. People who feel valued and appreciated are likelier to remain loyal. A customer excited to wear your brand’s badge and fly your flag is a powerful and potent ambassador.
Emotional Connection: Well-branded promotional items can evoke positive emotions and memories associated with your brand, helping to build an emotional connection with consumers. Are you a premium brand with higher-cost products? High-quality yet attainable merchandise serves an aspirational purpose, allowing customers of all types to exhibit alignment with your story, style, attitude, and values.
Differentiation & Elevation: In a crowded marketplace, unique and well-designed products help your brand stand out and stand above your competitors. Our Blackberry client sources the softest, most beautifully made sustainable sweatshirts you’ll ever touch. Branding a product that reflects your values speaks volumes. The curation and quality of their garments say everything about their brand.
Promotion: Branded merchandise can be leveraged as a tool for delivering a targeted message. The right custom merchandise can promote new products, services, or events and drive consumer engagement and interest. We once designed a co-branded line of products and teased it on social media. We knew it was a success when a local celebrity showed up at the retail shop and asked for it by name before it was even for sale.
The Impact of Great Branded Merchandise
The impact of branded merchandise lies in its ability to create lasting impressions and build strong relationships with your audience. Here are some key elements that contribute to the effectiveness of branded merchandise:
Tangible and Functional: Unlike print and digital advertisements, physical merchandise offers a tangible connection to the brand. Functional items such as apparel, tech gear, and everyday essentials are more likely to be used regularly, keeping the brand top of mind.
High Perceived Value: Top-quality, well-designed promotional products have a higher perceived value, making recipients feel appreciated and enhancing their perception of your brand. Choosing premium stainless steel water bottles over cheap plastic travel mugs sends a message. At the agency, we give all of our potential clients high-end custom notebooks they can use daily.
Word-of-Mouth Buzz: Eye-catching and useful products often spark conversations, leading to organic word-of-mouth buzz. When folks use custom-branded items in public, they effectively become brand ambassadors.
Enhanced Recall: Consistent exposure to branded merchandise enhances recall. Studies have shown that consumers are likelier to remember brands that provide useful and memorable merchandise.
From Swag to Swagger: Best Merchandise Strategy
Building a suite of compelling promotional merchandise takes more than slapping your logo on flimsy branded water bottles or cheap pens and USB flash drives that end up at the bottom of your junk drawer. To maximize the impact of branded merchandise, we recommend considering the following strategies:
- Know Your Audience: Your audience isn’t necessarily you. What does your tribe want or need? Do they really like polo shirts and fanny packs? Think of merchandise as a service rather than an opportunity for a hard sell. Understand your audience’s preferences, needs, and lifestyles—even ask them for ideas. Choose a product that resonates with them.
- Quality Over Quantity: Your merch suite is an opportunity to communicate value and quality. Prioritize well-made, thoughtful goods over low-priced, high-quantity items. T-shirts and tote bags are fine, but the most popular promotional merchandise feels special, and considered. Curated, custom items reflect positively on your brand and products, and are more likely to be used and appreciated by recipients. Look into local craftspeople and artisans and think about ways your merch choices can highlight makers in your community.
- Innovative Design: Your corporate logo alone likely won’t cut it. Invest time and money in a unique custom design that aligns with your brand identity and expands your conversation with the public. People love merch with a point of view that expresses something about your brand—and themselves. For many people, quality and design are the determining factors in keeping merchandise. Leveraging design services from your brand team is a worthwhile investment.
- Functional & Practical: Choose swag items that are useful, and worthwhile for everyday use. Custom promotional products that serve a purpose are more likely to be kept and used, increasing company visibility. Consider each item’s use occasions as well. Power banks and USBs will stick around, but are less likely to be seen by people other than the recipient.
- Sustainability: Consider environmentally friendly and sustainable items. Eco-conscious consumers are eager to support brands that prioritize sustainability. Reusables and recycled materials are consistently ranked among the most popular promotional products.
- Personalization: Where possible, offer personalized merchandise. Personalized swag makes a big impact—they feel more thoughtful and create a stronger emotional connection with the recipient.
ROI of Branded Merchandise
Developing a compelling suite of branded merchandise is an investment, but it’s one that is worthwhile when leveraged to enhance your brand presence and engage your audience. Measuring your return on investment:
- Increased Exposure: Merchandise provides ongoing exposure to your brand at a far lower cost per impression than traditional advertising methods. Great merchandise has a lifespan that racks up thousands of impressions for a single item.
- Customer Retention: Shoppers buy brands that are top of mind, that they love, and that they trust. High-quality products can build and enhance customer loyalty and retention, leading to repeat business and long-term relationships.
- Additional Revenue Stream: Top-performing companies forge an additional revenue stream by offering their customers branded products. In the early days, Yeti’s internal team had an idea to offer fans a range of hats in unique, rotating colorways. Sales were outstanding; today, branded merchandise is a huge part of the company’s business. We work with clients in a host of industries that boast healthy six-figure-plus revenue streams from merchandise.
- Lead Generation: Branded items can be used as communication platforms and incentives in promotional marketing campaigns, helping to generate leads and attract new customers.
- Employee Engagement: Branded merchandise is not only for external audiences. By investing in savvy product branding, corporate leadership can boost the organization’s morale, pride, and loyalty. When branding merchandise, companies should consider the impact on internal culture alongside consumers.
- Cost-Effective Promotion: Once produced, branded merchandise continues to promote your company without additional costs, making it a cost-effective promotional tool.
Wrap Up
Branded merchandise is a powerful marketing tool that serves multiple purposes, from increasing brand awareness to fostering customer loyalty and emotional connections. By understanding the needs and preferences of your audience, investing in quality and innovative design, and aligning with key values, companies can create effective merchandise strategies that deliver significant ROI. In an ever-evolving market, branded merchandise remains a timeless and impactful way to connect with consumers and strengthen brand identity.