People like to receive free products or free items. Companies take advantage of this fact all the time. You can employ the time-old marketing method of handing out free promotional products at trade shows or business events.
You can even use promotional material to create goodwill among your new employees, exceptional workers, and seasoned veterans.
However, ROI can be difficult to track on the promotional products companies in Australia give out. Companies use the following measuring methods. Find out if one suits you.
You can measure the ROI of your promotional items using the incremental margin approach. This method looks at the calculation of an incremental margin supported by your promotional items. In other words, through the approach, you can see if your promotional product strategy added value to your company or not.
The formula goes:
ROI = (Revenue Generated – Promotion Expense) / Promotion Expense
Quantifying Response to Call-to-Action
Besides the approach above, you can also focus on other key performance indicators such as call-to-action responses. You can measure your ROI based on how many people responded to your call-to-actions in your promo items.
The call-to-action includes elements such as website, e-mail address, or social media link on your promo products.
Consumer Behaviour in A/B Testing
You can also measure ROI with A/B testing. A/B testing, although mostly used for online measurements, takes two versions of an element, and you measure which one is more successful based on your choice of KPI.
Applied to promo items, you can track consumer behaviour and see how they react to different versions of your promo products.
The measuring methods outlined above are only a few that you can use to measure promotional product ROI. You can make your own measuring method, or use one mentioned here as long as it conforms to the scope and objective of your company.