How to Measure the ROI of Your Promotional Product Campaign Accurately
One of the arguments that promotional product naysayers like to bring up is how it is virtually impossible to measure the ROI on promotional products . They say that it is easy to say that it improves brand awareness, customer loyalty, and other benefits, but how would they quantify it to know that the costs justify the means? Will your logo-imprinted promotional products impact your brand profile and visibility and more importantly, bottom line? The answer to that is…
Yes, a hundred times yes! But there are specific methods that you have to implement in order to determine your ROI. What are these methods? Read below to find out!
Traditional ROI Computation
Yes, the conventional formula for deducing the ROI of any business spend, depending on the goal. If your goal is to achieve a measurable metric like increasing the number of conversions, leads, or social media interactions (likes, shares, tweets, and engagement), you take your gains and then subtract the spend. You then divide it with the spend of investment again. Below is the computation:
ROI = (Gains – Promotion Spend) / Promotion Spend
Entice people with a call to action
This is an active way of encouraging people to come into your brand’s stratosphere. Inviting them to like your Facebook page, visit your website, subscribe to your email newsletter and the like. However, this will only give you a rough idea as to the amount of gains that were actually generated by your promotional products. For a more exact computation of ROI, implement the next strategy.
Direct people to a unique phone number or url code.
Pointing them to a specially made phone number or URL code for your promotional product campaign will let you measure your ROI precisely. For phone numbers, you can check out Google Voice. Meanwhile, unique URLs can give you detailed reports on traffic and other web results thanks to Google Analytics.
Conduct A/B Testing
You can’t just rest on your laurels after your first promotional product campaign. You have to be constantly testing it and changing it up by varying the colors, messages, products, distribution channels. Keep doing this in order to improve your ROI as time goes by.
Run your campaign like a superhero movie
When planning a promotional product campaign, think of it as a story that needs to be told in two parts. Don’t just run a one-time, big-time campaign. Instead, leave the customers hanging for a bit. At first, you have to give them something to lure them in but will keep them wanting for more. For example, a trial product or half of a pair of branded merchandise like socks, shoes, or earphones. You can then lead them into action in order to claim the full product or the other half of their promotional item. To determine the amount of conversions, compare the number of recipients to the claims.
Since the approach to measuring ROI depends on the campaign, these are just the tip of the iceberg when it comes to measuring your ROI and bottom line. If this got you interested in starting your own promotional product campaign, you can contact us at 08 9328 6400 (8:30 am – 5:00 pm, Monday through Friday) or firstname.lastname@example.org.