Top 8 Reasons Why Your Company Needs Branded Merchandise


Last updated on November 26th, 2021

“Sell practical, tested merchandise at a reasonable profit, treat your customers like human beings – and they will always come back.”- Leon Leonwood Bean

When you think about McDonald’s, what is the first thing that comes to your mind? Perhaps, the iconic yellow arches or the image of the mascot, Ronald McDonald! This is the impact of great branding. Not only does good branding give consumers a memorable experience with a brand, but it also allows them to know what to expect from the company. A brand is built to represent who you are as a business and how you want to be perceived in order to attract your customers. There are several ways to develop a brand, and one of the most effective ways is by offering branded merchandise to customers.

What Is Branded Merchandise?

Branded merchandise is any product that contains a name or a logo of a brand. It is mostly used as promotional material at conventions, but Google, YouTube, and other big brands started selling their branded merchandise in their offices and online.

Nowadays, the business world is very competitive. Every year, we get to hear about a new brand. To make a presence and earn profits, businesses need to come up with creative ways to promote their business and earn profits. Branded merchandise is a great tool to establish brand identity and increase sales.

Promoting a brand through branded merchandise is not a new thing. In fact, a lot of companies have always given importance to market business through company merchandise. This is because it has always worked in their favor.

But there are still many companies that have not tasted success through branded merchandise. So those who are yet to get in the line of promoting business through brand merchandise, here are the top reasons why it is important for any business.

Top 8 Reasons Why Your Company Needs Branded Merchandise

01. Cost-Effective Marketing Strategy

The main objective of every business is to earn profits. As compared to other forms of advertising such as television, radio, billboard, etc. brand merchandise is a cost-effective way to promote a brand.

The more quantity you buy, the lesser will be the price of the product. Also, most of the branded merchandise use word of mouth techniques to boost the cost per impression.


Since customers can pass on promotional products to other individuals, brand reputation benefits vastly from increased impressions.

Fun Fact: Did you know that the average CPI of promotional products is $0.004 per impression, making it a less expensive form of medium?

02. Instant Brand Recognition

For every marketer, the main objective behind every marketing campaign is to build brand awareness. When people are aware of a brand, they can recognize the particular brand instantly and are more likely to buy from the same brand.

Giving away company merchandise that can be used daily or can be kept for a longer period can help you get maximum exposure. This way your customers will remember your business for a longer period or perhaps for a lifetime.

Custom Yeti Mugs


Statistics have also shown that:

i. 50% of individuals use promotional products daily.

ii. 6 out of 10 individuals keep promotional products for two years.

iii. 15% of the individuals have said that after receiving promotional products, their impression of a company was more positive.

Today, we have several options of merchandise items. Make sure you choose the one that perfectly resonates with your brand. Also, while designing branded merchandise, don’t forget to add your company logo on the product as logos are generally recognized by people instantly.

03. Creates Brand Loyalists

Acquiring new customers costs six times more than retaining an old one. Company merchandise drives customer loyalty. Every person loves receiving something for free. And when a customer gets something useful and unexpected, they experience a feeling of pleasure.


This positive emotion connects them with a brand. As per the latest statistics:

i. 85% of consumers do business with a company after receiving a promotional product.

ii. 89% of the people who received promotional products in the past 24 months remember the name of the company.

Fun Fact: Did you know that in 1789, George Washington gave out memorial coat buttons to celebrate his presidency?


04. Works As A Business Card

Business cards are a great way to introduce business to potential clients. While business cards have always been an incredibly valuable business staple, promotional products are new-age business cards. Just put yourself in the shoes of your customers.

If a company you are not interested in offers you a business card, would you accept it? We guess no! On the other hand, if that same company offers you a free custom t-shirt or a pen drive or a beautiful mug, would you accept it?

Of course you would! And when you accept any of these items, you will get to see information about the same company just like it is printed on business cards.

The chances of throwing these items are lesser as compared to a paper card. Also, as you will probably be using a promotional product on a daily basis; you will end up remembering the company for a longer period.

05. Generate More Leads

For every business, generating leads is very important. There is no doubt that branded merchandise is a great tool for increasing brand awareness, but they can also be used to generate leads.

You can capture leads through so many ways, but if by any chance you don’t get the desired results, you can always take the help of branded merchandise.


Here Are Some Of The Techniques You Can Use While Generating Leads Through Brand Merchandise:

i. Make your team use the product during client meetings. This will improve the perception of your business and close more sales.

ii. Individuals, who provide their contact information, should be given something special along with your promotional product. For instance, if you are using coffee mugs as a promotional item, you can give them a packet of good quality coffee. This will help you attract more potential leads to your business.


06. Build Relationships With Customers

We all know that customers are the lifeline of every business. The success of any business largely depends on the potential customers as at the end they are the ones who will buy the products or services.

But maintaining a relationship with customers is one of the most significant and difficult activities that a company needs to perform.


Giving company merchandise to potential customers will not only add a personal touch but also encourage them to refer your brand to their friends and family.

07. Helps Stand Out Amongst Competitors

Being a business owner you must have heard the statistics of business failures. According to the U.S Labor Statistics, 20% of businesses fail within the first year and 50% of businesses fail by the end of their fifth year. Well, there can be plenty of reasons for their failure, but lack of differentiation is one that often tops the list.


With the help of branded merchandise, you can differentiate your brand to clearly stand out amongst competitors. Branded merchandise will make your brand look more engaging, interesting, and dedicated as compared to competitors who hesitate to invest in branded items.

Your customers can also be encouraged to share posts with their pictures along with images of your branded merchandise on your brand’s social media page. This will help you get more content, gain more visibility, and establish trust amongst your target audience.

Fun Fact: Did you know that following the fidget spinner fad, the NFL, MLB, NBA, NCAA, and NHL have branded versions of the product?

08. Increases Morale Among Employees

Employees are one of the biggest assets of a company. A happy employee not only helps a company achieve its objectives, but also can be a great word-of-mouth marketer.

By distributing branded merchandise like custom mugs, t-shirts, or water bottles, you will foster the loyalty and morale of your employees indirectly.