← Back

Top 5 Benefits of Promotional Products

Companies have used promotional products for decades. While some swear by the effectiveness of this marketing strategy quickly, others need some convincing. From small and independent businesses to large international corporations, it is a marketing strategy that can be easily tailored to the needs of any company and its target audience. So, what exactly makes promotional products great?

What are Promotional Products?

Promotional products are items labelled with company's branding to raise brand awareness. Normally, companies hand them out as promotional gifts, which is why the range of these products is quite big.

While items like custom hats, mugs, t-shirts, and water bottles are among the most common, nowadays, most items can be tailored to fit the promotional product category thus highlighting the company's values.

For example, companies with sustainability goals could be using environmentally friendly products to promote their brand.

Promotional product success is determined by your target audience. An embroidered towel might be a suitable choice for a fitness company, but a slightly bizarre option for a bank or a tech company.

5 Benefits of Promotional Products

British Promotional Merchandise Association notes that 70% marketers use promotional merchandise to raise brand awareness. It is a cost-effective marketing tactic that helps not only with lead generation, but also customer retention. Here are the top 5 benefits of using promotional products!

1. Increased Brand Recognition

Whether your company is participating in a conference or a seminar or hosting an event, custom promotional merchandise will help with raising brand awareness.

Promotional products help increase brand awareness thanks to their practicality and how long people keep these items as opposed to other types of advertising. Most people, when looking around their homes, will tend to find a thing or two that was once gifted to them by a company – sometimes even years after.

2. Building Customer Loyalty

Since companies hand out promotional products for free, it is an excellent way to build customer loyalty. Buyers love freebies, and it is always smart to show your appreciation to partners after business deals or during the holiday season.

People remember appreciation and consideration. If they remember and recognise your brand from the promotional product branding, they are more likely to go to you for all their relevant needs.

3. Lowered Marketing Costs

Smaller companies can only dream of large advertising campaigns with big budgets. They can, however, reach a significant impact at much smaller budget by using low-cost promotional products.

Simple yet effective promotional items like coffee mugs, canvas tote bags, and pens are often offered to companies at a low cost for large distribution. And considering that people tend to have these items around for a long time, it is an excellent return for your investment.

4. Better Lead Generation

When a person shows interest in your brand, service, or product in any form, they can be considered or a lead. Lead generation is when you turn strangers into leads by attracting them to your company and turning them into prospective customers.

Promotional products are a two-for-one solution – not only do they generate new leads, but they also help with branding at the same time.

Some ways you can use promotional products for lead generation include:

  • Handing products out at industry events or trade shows.
  • Offering promotional items when people sign up for company newsletters or complete surveys.
  • Creating incentives for loyal customers and rewarding them with promotional products when they refer new customers (leads).

5. Increase Customer Retention

Customer retention can be one of the biggest challenges for companies. Sometimes it is not enough to offer an excellent product or service and you need to go an extra mile.

When first-time buyers or existing customers receive recognition for their purchase or loyalty, they may expect something in return. If you want to retain your customers, make them feel truly special!

Some ways to reward customers with promotional items thus achieving customer retention could be sending out a gift on their birthday or offering a gift with a repeated purchase.


There is no doubt about it – promotional products have multiple benefits for companies. Increased loyalty, retention, and brand exposure can bring long-term profits at a relatively low cost.

At the end of the day, what sets successful promotional items apart from those that people toss away is product quality, and practicality. It is always best to invest in custom promotional products your customers will happily use in their everyday lives and proudly display to others to establish credibility.