Today, we’re focusing on one of the most-loved types of promotional merchandise: branded freebies. From the consumer’s perspective, branded freebies are a no-brainer… after all, who doesn’t love free stuff? But many businesses are reluctant to invest in merchandise with no guaranteed return.

In fact, branded promotional merchandise can be a lucrative marketing strategy. It leverages the power of consumer psychology to increase brand awareness, acquire new customers, and boost engagement.

Let’s dive straight in. 

What is brand merchandising?

You might know brand merchandising by another name. Whether you call it branded merchandise, promotional merchandise, or something completely different, it’s a powerful tool for promoting your business.

Chances are, you already know what brand merchandising is. This marketing tactic is everywhere, printed on tote bags, emblazoned on hoodies, and painted on coffee cups.

But for the uninitiated, brand merchandising is the practice of using your company’s brand on products. This includes your logo, brand colours, symbols, and anything else associated with your brand. 

Branded freebies trigger positive hormones

We won’t dive too deep into the world of neuroscience, but it’s worth mentioning that branded freebies have the power to trigger feel-good hormones. Hormones like dopamine send messages from your brain to your body, making them at least partly responsible for buying habits. Brands also trigger hormones like adrenaline to boost sales — more on that later. 

Here’s a scenario: you attend the opening of a new clothing shop and receive a tote bag emblazoned with the company’s logo. You feel your gift and notice it’s high-quality, fashionable, and practical. You get a burst of dopamine and establish a positive connection to the brand. 

When you get home, you hang the tote bag on your coat rack. Every day, you see the bag and the logo before you leave your house. The association between the brand and the logo has been established, making the company’s brand identity a staple in the fabric of your life. 

This is all part of consumer psychology, a branch of psychology that analyses how people think, feel, and behave as consumers. In other words, it’s your fast-track to increasing engagement. 

Examples of promotional merchandise for businesses

Plastic pens are an affordable option for large events like conferences and trade shows. They are also practical, offering a tactile experience that strengthens positive associations between customers and your brand.

Bags are popular branded freebies, ideal for giveaways and trade shows. Handing out branded natural cotton tote bags is a great marketing tactic that could attract new customers from far and wide. 

Mental health and wellness products show that you care about customers, clients, and employees. You can give employees branded travel eye masks for corporate trips or hand out branded reed diffusers to new customers. 

Branded jackets have a practical and promotional purpose, signalling that an employee is part of your company and displaying your logo, brand colours, and name to increase brand awareness.

Why have branded merchandise? 

The benefits of investing in promotional merchandise are varied, from increasing brand awareness to boosting employee morale. 

Increase brand awareness 

Brand awareness measures how recognisable your brand is. You can do lots of things to increase brand awareness, and sometimes the simplest solution is the best. 

A study published by the British Promotional Merchandise Association (BPMA) found a direct correlation between branded merchandise and sales. In this landmark study, 66% of participants claimed they could recall the brand of a promotional product received within the past 12 months. Furthermore, 56% said their impression of the company improved after receiving a branded item.  

According to this study (and many like it), promotional merchandise is an effective way to improve brand awareness. By simply giving out branded freebies, you are creating a tangible and visual connection between consumers and your brand. 

Create loyal customers 

Branded freebies aren’t just for one-off seminars and giveaways. In fact, you can incorporate this marketing strategy into every transaction by giving freebies away at the checkout. 

One study found that freebie marketing is an effective tool for improving customer loyalty and retention in the fast-moving consumer goods (FMCG) industry, which includes everything you’d find in your local supermarket.

It’s easy to see why branded freebies might create loyal customers. Gifts create positive brand associations, establishing your business as generous and customer-focused. This strategy could increase the likelihood of repeat purchases and word-of-mouth recommendations — customers are bound to tell their friends about the freebie they got from the local supermarket. 

Enhance perceived value 

Perceived value is an important part of your marketing strategy, but it’s entirely subjective. It hinges on how much a customer values, desires, and craves the services and products on offer. 

Free promotional merchandise can give your perceived value a much-needed boost. If customers know your business will give them a free branded Easter gift with their bubble tea, they are more likely to go to your shop instead of the one across the road. 

The customer believes they are getting more for less and making their money stretch further. Not only do they get the dopamine hit from the purchase itself, but they also get the satisfaction of a free ‘extra’ they were smart enough to find. And, as we mentioned earlier, the dopamine boost creates positive reward pathways, meaning the customer might return for more.

Invest in a cost-effective marketing strategy 

Remember that study from the BPMA we mentioned earlier? It found that the return on investment (ROI) on promotional products is higher than the ROI on radio and outdoor advertising. It also revealed that the ROI on branded merchandise is equal to TV and print, showing just how important your logo is in influencing consumer psychology.

Think of promotional merchandise as a walking billboard that increases your advertising radius. More people will see your brand, recognise it, and associate it with whatever products and/or services you offer. When they need your product, your brand might come to mind. 

Utilise subliminal marketing 

Love it or hate it, all the big brands do it. Subliminal marketing is the practice of using hidden or suggestive messages to influence behaviour. The consumer isn’t aware they have been subject to subliminal marketing, instead believing free will has drawn them to a product or brand. 

If your logo really reflects your brand identity and conveys key messages about your products, you could be well on your way to utilising subliminal messaging.

Branded freebies are a great way to spread a subliminal message, introducing your logo to new audiences. Add your logo to high-quality merchandise, and hey presto, you’ve created a subliminal message that states your brand is exceptional. 

Acquire new customers 

Giveaways are a great way to acquire new customers, and there is no shortage of opportunities. Brands do giveaways all the time; for instance, when they hit a certain number of subscribers on Instagram or Facebook or open a new shop. 

Why not combine giveaways and event marketing? Create a giveaway wheel for your trade show stall, conference, or grand opening and watch as customers spin for a chance to win branded freebies. This is a great way to break the ice, inviting new customers to learn more about your business. 

Winning a fun, practical, or visually appealing giveaway item gives customers an adrenaline rush. The short-term feel-good effects of adrenaline are followed by a ‘crash’, a return to normal after the dizzying heights induced by the hormone. The customer will crave the rush, associating your business with positive feelings.

Boost employee morale 

When we talk about branded merchandise for businesses, the attention always turns to customers. But what about employees? 

One study found that British employees are ‘merchandise-fans’, with 36% agreeing that free corporate merchandise is the most attractive benefit of their job. Of those 1,500 nationwide participants: 

• 72% say corporate gifts make them feel valued.

• 25% say corporate gifts are good for morale. 

• 85% say regular promotional gifts would positively change their opinion of the company they work for.

Another study found that 56% of employees expect branded merchandise when starting a new role, showing just how well-established branded freebies are in the corporate landscape. 

Six ways to use branded freebies

So, how can you use branded merchandise for businesses? Your first thought might be corporate retreats and giveaways, but there are many more ways to use branded freebies. 

• Appreciation: Send branded gifts to existing customers to thank them for their loyalty. 

• Giveaways: Entice new customers with the chance to win promotional freebies ranging from drinkware to clothing. 

• Influencers: Send branded gifts to influencers in exchange for reviews. 

• Incentives: Ask customers to sign up for your newsletter for a chance to win a seasonal treat, like an Easter gift. 

• Decor: Decorate your office with branded products to create a sense of community and reinforce your brand identity.

• Events: Use branded items to attract potential customers.

What type of branded merchandise should I choose for giveaways?

For giveaways, you need fun branded freebies like a Rubik’s Cube or a box of chocolates. There’s a chance winners will snap a picture and tag your business on social media, another valuable avenue for engagement. 

Another good option for giveaways is practical branded merchandise, like a speaker or a mouse pad. Customers might keep practical gifts in their homes, which increases the likelihood of seeing your logo every day. 

Where can I buy branded merchandise? 

Totally Branded is a leading producer of promotional merchandise for businesses, offering fast turnarounds and low minimum order quantities that don’t compromise on quality. 

For support tailored to you, contact us.