Why? Because customers who receive promotional products, on average, return
sooner and more frequently, and spend more money than customers who receive
coupons. In two separate studies, SMU researchers tested whether promotional
products would outperform coupons in the area of repeat business and sales.
- Customers who received promotional products reordered up to 18% sooner than
those who received coupons and up to 13% sooner than those who received no
- Customers who received promotional products also averaged up to 18% more
orders than those receiving coupons and up to 13% more than those who received
- In summary; customers who received promotional products reordered more
quickly and ordered more often than those who received no promotional products.
Study details: Study one was conducted in 1993 by
Southern Methodist University, and consisted of approximately 900 people that
were divided equally into nine groups. These nine groups were broken down by
type of customer (existing residential, new residential, and business customer)
and what they received (promotional product, coupon, or nothing). Products and
coupons were valued at $2. Study two, also by SMU, was conducted in 1994, and
tracked the activity of 300 new customers at two locations of a dry cleaner.
These customers were randomly assigned to one of three groups, all of whom
received a welcome letter. Two of these groups received, in addition to the
letter, a promotional product or a coupon (each valued at $5)
- Over an eight-month period, new customers that received promotional
products spent 27% more than those who received coupons, and 139% more than
those who received only a welcome letter.
- Promotional products recipients were also 49% more likely than coupon
recipients and 75% more likely than letter recipients to patronize the dry
cleaner in each of the eight months studied.
- In summary, new customers who received promotional products spent more and
were more regular customers than those who did not receive promotional
Real World Success
Objective:.To personify a promotion and motivate additional
Strategy and Expansion: Playing on the skeptical notion that
free checking is as incredible as pigs that fly, this company introduced free
checking at its 60 Arizona branches.
Designed as a
a piggy bank was created to give the broadcast and print advertising a
personality and to be used as a premium. Customers who signed up for free
checking were offered the
bank in return for opening a savings account, applying for credit or other
Results: The 14,085 new checking accounts
and 26,000 additional products purchased exceeded over projections by 70% and
Contact us for a customized promotional program designed specifically for your
- Customer Aquisition Programs - designed to increase the number of leads who
- Customer Reactivation Programs - designed to bring inactive customers back
to your door.
- Sales Volume Programs - designed to increase the size of your average