There are a few key metrics you’ll want to monitor if you want to gauge the return on investment (ROI) of your promotional product campaigns.
You can more precisely evaluate the efficacy of your marketing initiatives by comprehending how your customers interact with your promotional products.
“Should I include promotional products in my marketing strategy?”
“Is buying items from a promotional products distributor profitable?”
These concerns are typical for a first-time purchaser of promotional goods. To make wise choices, you must be informed of what marketing strategies work and don’t work.
Continue reading to find out how to calculate ROI and evaluate all of the advantages to your organization.
How Is The Return On Investment Determined?
Calculating return on investment is straightforward:
(Growth in Sales – Marketing Expense) / Marketing Expense is the formula for calculating marketing ROI (expressed as a percentage)
Your ROI would be ($5000 – $2000) / $2,000, or 150% if you assumed a $5000 gain in sales due to the donation of $2,000 in goods.
Simple, huh? Hold out on that, though. The difficult part is finding a way to connect revenue growth to the products you sell.
Brand awareness is one benefit of promotional products (which is very difficult to measure).
Corporate gifts can help employees feel valued and valued employees can boost output since contented workers generate more output.
Therefore, we strongly advise using expenses per impression as a superior statistic when assessing the benefits for your brand.
How Can Promotional Products Be Used To Credit Sales?
Try the following strategies to monitor unexpected sales growth:
- For analytics tracking, print a QR code on a product
- A clear call to action on the product that directs users to a straightforward landing page
- Count the instances where a QR code has been scanned.
- A receiver should be hidden behind a form to prevent additional marketing.
- Include the data in client/customer satisfaction questionnaires.
The Advertising Speciality Institute conducted a study that found that a product’s cost per impression (CPI) might be as low as one-tenth of a penny while still outperforming virtually all other forms of advertising.
A branded product’s cost per impression is calculated by dividing the product’s price by the number of impressions.
The CPI is, therefore, simply one penny ($10/1000) = $0.01 if you have a $10 promotional drink bottle that receives 1000 views throughout its lifecycle.
According to the same poll, estimated perceptions of the next group were as follows:
- 5881 3233 pens totaling 5881 imprints on bags
- Wearable impressions: 3179
- 2034 impressions of caps
- T-shirt impressions totaling 1755
Some Ideas to Improve the ROI of Promotions
Even though the rewards can be hard to measure, here are some tips to make the most of your upcoming campaign:
- Consider placing a demonstration or form next to your merchandise (trading contact details for a freebie)
- devising a strategy for later communicating with beneficiaries (e.g., a call from a sales rep or tailored marketing content)
- Test repeatedly, then solicit feedback.
- Choose things that your target market will like.
- Not always is cheaper better (remember this is a tangible representation of your brand)
To ensure you get the most for your money, consult a promotional items specialist who can help customers with product ordering, artwork, and choosing.
Promotional products are a powerful tool for establishing your brand and achieving marketing objectives, even though it may be challenging to pinpoint a precise ROI. Talk to a promotional products manufacturer in Riverwoods, IL if you want specialized advice specific to your circumstance or any issues.
Global Sourcing Connection is an award-winning, certified woman-owned (WBENC) and industry-leading promotional products distributor with direct factory capabilities. We are experts in brand awareness and committed to the highest level of customer service and on-time delivery. We combine innovation, creativity, and functionality while exceeding your expectations, not your budget. Get promotional products today!