Top 10 Reasons for Branded Merchandise in Sales & Marketing

Branded merchandise—also known as promotional products, swag, or just "merch"—offer a tangible and enduring way to connect with customers, employees, and prospects. Unlike fleeting digital ads, promotional products provide physical touchpoints that reinforce brand identity, foster loyalty, and drive measurable engagement. According to industry data, the U.S. promotional products market is projected to reach $27.8 billion in 2025, reflecting a steady growth trajectory of 2.8% annually over the past decade.

Let's take a look at the top 10 reasons why companies should prioritize promotional products in their marketing and sales strategies, supported by data from leading industry sources such as the Promotional Products Association International (PPAI) and the Advertising Specialty Institute (ASI).

The Top 10 Reasons to Include Branded Merch in Your Sales & Marketing Strategies

1. Branded Merchandises Unmatched Recall and Visibility

Promotional products significantly enhance brand recognition. Studies indicate that 90% of recipients remember the brand name on a promotional item, and 73% are more likely to do business with that brand. Apparel items, in particular, have a high recall rate, with 85% of people remembering the brand after receiving such products.

Strategic Benefit: High recall rates translate to increased brand awareness and customer retention, offering a cost-effective alternative to traditional advertising channels.

Use Case: A regional credit union distributes branded RFID-blocking wallets at community events. Months later, new customers recall the wallet and mention it during account signups, proving lasting brand recall from a single product.

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2. Low Cost + Long-Term Use = Maximum ROI

Promotional products cost an average of $0.007 per impression—lower than print, radio, or TV ads. Even better, approximately 87% of consumers keep promotional items for more than a year, and 40% retain them for over a decade. Outerwear items, for example, generate an average of 7,856 impressions over their lifetime.

Strategic Benefit: The longevity of promotional products ensures sustained brand visibility, maximizing return on investment.

Example: A small craft brewery gives away branded stainless steel pint glasses with each tour. Customers continue to use them at home and share photos on social media, generating impressions for months with a single $3 item.

3. Branded Merchandise Boosts Brand Affinity

Promotional items foster stronger customer relationships. 81% of consumers have a more favorable impression of a company after receiving a promotional item, especially when it accompanies a resolved customer service issue. Moreover, 83% of people are more likely to do repeat business with a brand after receiving a promotional product.

Strategic Benefit: Strengthening customer loyalty and positive brand perception can lead to repeat business and referrals.

Scenario: An HVAC company sends long-time customers a branded emergency flashlight kit during storm season. The thoughtful, useful gift builds goodwill and keeps the company's phone number top-of-mind when service is needed.

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4. Supports Sales Enablement and Prospecting

Branded promotional products generate 500% more referrals than reviews alone, making them a high-leverage asset for sales teams targeting growth through relationships and word-of-mouth. They are tangible sales tools that help break the ice, reinforce messaging, and stay top-of-mind throughout the customer journey.

Strategic Benefit: Branded items help sales teams accelerate deal velocity, increase email or call-back response rates, and reduce the perceived risk of engagement by fostering familiarity and positive brand associations early in the buying cycle.

Use Case: A software company targeting financial services firms sends branded leather-bound notebooks and pens to qualified prospects after initial discovery calls. Each notebook includes a handwritten note recapping the key pain points discussed and how their platform can help. This small, thoughtful gesture not only personalizes the sales experience but also gives prospects a reason to keep the brand on their desks—literally and figuratively—as they evaluate solutions.

5. Boosts Employee Morale and Retention

Branded items can enhance employee engagement. Receiving promotional products makes 62% of employees feel appreciated, and 53% feel more included in their team. Notably, employees who receive such items tend to stay with their company 1.5 years longer on average.

Strategic Benefit: Improved employee morale and retention contribute to a more stable and productive workforce.

Use Case: A SaaS company launches a peer-nominated “Employee of the Month” program, with winners receiving a custom-branded YETI tumbler and hoodie. Employees proudly wear the gear, boosting morale and team pride.

"The Science Behind Promotional Product Effectiveness"

6. Branded Merchandise Increases Word-of-Mouth Marketing

Branded merchandise can amplify word-of-mouth marketing efforts. They generate up to 500% more customer referrals than other forms of advertising. 45% of consumers say they’ve posted branded merchandise on social media

Strategic Benefit: Enhanced referral rates can lead to new customer acquisition and expanded market reach.

Scenario: A fitness studio gives out limited-edition branded water bottles to new members who tag them on Instagram. The campaign generates dozens of local tags in the first week, driving both foot traffic and new member sign-ups.

7. Differentiates the Brand in Competitive Markets

79% of people say promotional products help them remember a brand in crowded industries. Branded merchandise is a visual and tactile differentiator. A well-chosen, high-quality branded item doesn’t just capture attention—it conveys brand values, builds emotional connections, and creates memorable moments that competitors often overlook. 

Strategic Benefit: In highly competitive environments, differentiation is everything. Branded products can carve out a unique space in the consumer’s mind, establishing visual and emotional cues that competitors can’t easily replicate. This advantage translates to higher conversion rates, easier market penetration, and increased pricing power due to the elevated brand perception.

Example: In the crowded insurance space, one independent agent sends prospects a branded keychain multitool with their quote packet. The practical gift sets them apart from larger providers and earns immediate follow-up calls.

8. Strengthens New Customer Onboarding and Experience

Branded welcome gifts can elevate the first impression a company makes, transforming a routine onboarding process into a memorable brand experience. Branded welcome gifts increase onboarding satisfaction by 45%—a substantial impact that can influence how long a customer stays, how often they engage, and whether they refer others.

Strategic Benefit: By incorporating high-quality branded items into onboarding kits, companies send a message that they’re thoughtful, detail-oriented, and invested in the customer relationship from day one. This builds immediate goodwill, increases product adoption, and transforms new customers into brand advocates—all of which contribute to improved customer lifetime value (CLTV) and referral rates. 

Use Case: A subscription-based meal service sends new customers a welcome box that includes a branded apron, measuring spoons, and recipe cards. Customers post their “unboxing” experiences, reinforcing positive first impressions and increasing retention. 

9. Branded Merchandise, Brand Discovery, and Trial

Branded promotional items can attract new customers. Approximately 61% of consumers would look up a brand they are unfamiliar with after receiving a promotional product. This makes branded merchandise an effective way to drive curiosity, initiate first contact, and seed future conversions.

Strategic Benefit: Facilitating brand discovery can lead to increased market penetration and customer base expansion. Promotional marketing with branded items can support category growth, regional expansion, and product launches by creating a frictionless on-ramp for new customer acquisition, all while providing a built-in call-to-action that bridges the gap between interest and trial.

Use Case: A new premium sparkling water brand launches in select regional grocery stores and partners with local yoga studios and wellness events to distribute free branded aluminum water bottles featuring a QR code. When scanned, the QR code leads users to a landing page offering a free in-store coupon and brand story video. Many of the recipients, unfamiliar with the brand, scan the code out of curiosity and redeem the coupon, resulting in measurable increases in store foot traffic and trial purchases.

10. Versatility Across Marketing Channels and Campaigns

Integrating promotional items into broader campaigns increases ROI by up to 44%. They can be distributed at trade shows, included in direct mail campaigns, or used as incentives for purchases.

Strategic Benefit: Versatility allows for cohesive branding across multiple channels, enhancing overall marketing effectiveness.

Scenario: A college runs a “Choose Your Future” enrollment campaign combining digital ads, email, and a direct mail box featuring a branded planner and pen. The cohesive multi-touch experience helps increase applications by 18%.

Strategic Integration of Branded Merchandise

Incorporating branded items into sales and marketing strategies offers a multifaceted approach to enhancing brand visibility, fostering customer loyalty, and driving business growth. The tangible nature of promotional products creates lasting impressions, making them a valuable asset in a company's marketing arsenal.

By leveraging the benefits outlined above, Swagopoly helps companies can create more engaging and effective marketing campaigns that resonate with both customers and employees, ultimately leading to sustained success in a competitive marketplace. Contact us today to integrate branded items into your sales and marketing strategies.