Why do promotional products work? Statistics and Psychology

All promotional products’ distributors will say how wonderfully well, branded merchandise works – but they wouldn’t they? The trade bodies BPMA and ASIboth produce industry statistics which are often quoted, namely:

• Brand Recall: 90% of recipients remember the brand after receiving a product.
• Customer Action: 75% of customers are more likely to buy from a company that gave them a promotional product compared to one that didn't.
• Longevity: 87% of people keep promotional products for more than a year, with 40% keeping them for over 10 years. 91% of consumers have at least one promotional item in their kitchen.

The most important being that customers say they would take action, that promotional merchandise effects the buying decision – but why? Why does a promotional product work?

The psychology of why promotional merchandise works.

 1. Reciprocity

In the seminal book, INFLUENCE The Psychology of Persuasion; Robert B. Cialdini points to the most powerful concept of reciprocity. The reciprocity rule states that a favour will always leave someone beholden to return the favour, and to quote the book:

The rule demands that one sort of action be reciprocated with a similar sort of action. A favor is to be met with another favor; it is not to be met with neglect, and certainly not with attack. But within the similar-action boundaries, considerable flexibility is allowed. A small initial favor can produce a sense of obligation to agree to a substantially larger return favor.

Thus, the giving of a gift leaves the other party with a strong emotional desire to somehow return the favour. In order to elicit the reciprocity response from customers, your marketing products should be useful, attractive, enjoyable and relevant. Cheap plastic trinkets may not create much in the way of reciprocity.

 2. Signalling

The marketing guru Rory Sutherland, Ogilvy Vice Chair and prolific speaker and author describes in his book ‘ALCHEMY The Magic of Original Thinking’, the concept of signalling. He asks – Why does an upmarket clothes or cosmetic shop present you with a ‘posh rope handled carrier bag’ after you have made purchase, or the Italian restaurant supply a free Limoncello after the meal? They are, in his words, ‘Signalling the longevity of a relationship by investing in it’. They are signalling that this is not a short-term relationship based on narrow short-term profit. They thus create brand loyalty.

Promotional merchandise does the same thing – it is the signalling that creates trust and we buy from those we trust.

Back to the ASI and BPMA statistics

• 83% of customers receiving branded merchandise have a more positive impression of a brand, and
• 79% feel appreciated.

 3. Repetition

Brand awareness comes from repetition. We recall brands that we see again and again.

As marketers we can create repetition in a number of ways. The same social ad popping up on feeds, using remarketing feature within Google ads, regular emails and regular advert placement – or all of the above.

Branded merchandise has the same repetitive effect, if the item is useful and used. We see the brand repeatedly. The BPMA and ASI would argue that because the branded merchandise gives brand repetition with a single expense at the front, it creates repetition with a much higher ROI than other methods.

The PDI view would be that whilst promotional merchandise can present a high ROI, it should not be seen in isolation. Different ways of presenting the brand will produce a stronger reaction. So yes to promotional merchandise but not JUST promotional merchandise.

References

BPMA – https://bpma.co.uk/

ASI – https://asicentral.com/

Bibliography

‘ALCHEMY The Magic of Original Thinking’ – Rory Sutherland

‘INFLUENCE The Psychology of Persuasion’ - Robert B. Cialdini

AUTHOR

DAVID PLATT – BA, BSC, MBA Dip M – David has run a promotional products business for over 25 years and has seen up close the successful and not so successful merchandise campaigns. Experience and academic research gives an insight into the way the industry can provide value.

david@pdi.co.uk