Who is the PPAI?
The PPAI (Promotional Products Association International) is the only not for profit organization that serves the promotional products industry. One of the services that PPAI provides is in-depth studies and market research designed to help distributors and customers better understand marketing conditions and insure better opportunities to profit through promotional products based marketing.
Build Customer Goodwill With Promotional Products Research Study
Promotional Products Industry Research Data
Build Customer Goodwill
With Promotional Products
Promotional products foster customer goodwill (positive attitudes and feelings) toward a company and its salespeople. This study, completed by Baylor University , involved a textbook publisher sending 4,000 educators either: (1) a pocket calculator plus a letter, (2) a lower-priced highlighter pen plus a letter, or (3) a letter only.
* Customers who received a promotional product expressed more good will toward the company and its sales people than those who did not receive a promotional product.
* The attitudes of those who received the calculator were consistently more positive than for those who received the less expensive highlighter pen.
* Customers who received the pocket calculator or the highlighter pen rated the proficiency and ability of the sales representatives as 34% and 16% (respectively) higher than those who received only the thank you letter.
* On questions relating to the customers' personal feelings toward the company and its sales representatives, customers who received the calculator scored 52% higher than the letter only group (see table above).
Findings
Real World Success Story
OBJECTIVE: To conserve water and help customers reduce their water bills.
STRATEGY & EXECUTION: Water consumption during the summer had always been a great concern to one New York county water company because of the increased usage of water for lawns and gardens. The water company targeted its 53,000 residential customers with a mailing announcing a new conservation program and a bounce back card offering an information packet. Respondents were sent an information video tape, refrigerator magnet and a slide chart to calculate the amount of water needed to keep a healthy lawn. It was used in conjunction with a watering guide number, known as ET (Evapo-Transpiration), that was published daily in the newspaper and based on rain and humidity levels.
RESULTS: Anticipating an 8% return, the advertiser actually received a 15% return
(7,950 responses). Projections indicated that approximately 5,000 gallons of water would be saved per participating household, thereby passing on a savings of $75, each based on an average $200 water bill for summer months.
Generate Customer Referrals through Promotional Products Promotional products help encourage customers to provide you with the names of friends and associates whom you can contact in the future. A study by Baylor University found that customers who receive promotional products are more willing to provide these leads than customers who don't receive promotional products.
This study was conducted with 20 Mary Kay beauty consultants, half of whom distributed promotional gifts (imprinted lint removers) to customers; the other ten offered no promotional gifts. Both groups then asked customers (200 in all) to refer the names of acquaintances. Findings are presented below.
Findings
* Customers who received a promotional product were 14% more likely to provide leads than those who did not.
* Salespeople who gave promotional gifts to their customers received 22% more referrals than salespeople who did not use promotional products.
* 40% of the salespeople who used the gifts commented on how well the gifts were received by their customers.
Providing promotional gifts to customers increases the likelihood of them providing your salespeople with business referrals, and increases the number of leads generated. Used within a one-time promotion to expand your customer base or as an approach to insure the continuous growth of your business, promotional products are effective tools.
Real World Success Story
OBJECTIVE:
To gain name recognition within a defined group of apartment managers and leasing agents in order to
increase the number of referrals from them.
STRATEGY & EXECUTION:
This apartment search firm was competing with another firm who had dominated the market in the Twin Cities area. The three phase, $6,000 promotion began in the winter months, with the distribution of "winter survival kits" by a sales rep. The kits consisted of a bottle of hand lotion, an ice scraper, and a stick-up calendar with labels. The spring promotion was sent through the mail and consisted of a frisbee type flyer and flower seeds. The summer survival kit was again distributed by the sales reps, and included a bike sport bottle, can cooler, rubberized sunglasses, a bottle of hand lotion, an Aero prop and mini beach bag which served as the container.
RESULTS:
A Marketing Services Representative of the company wrote a letter indicating that the promotional products, along with several other factors, had made a definite impact on on-site apartment staff and owners.
Clients Respond To Business Gifts The business world relies heavily on relationships, maintaining current ones as well as fostering new ones. Business gifts show your clients how much you value them and gives you visibility that can last a lifetime. More importantly, business gifts generate both new and repeat sales.
In a 1998 study, Dr Richard Beltramini of Wayne State University demonstrated that business gifts effectively improved both sales and customer attitudes. Beltramini accomplished this by comparing results across three customer groups: The "Letter Group" received only a letter of thanks, the "Silver Group" received the letter plus a silver desk set ($20 retail value) and the "Gold Group" received the letter plus a gold desk set ($40 retail value). Measurements were taken both before and after delivery of the gifts.
Findings
* Those who received the silver and gold gifts were 23 and 43 percent (respectively) more satisfied with the company than those who received only a letter of thanks.
* Silver and gold gift recipients' "intent to buy" ratings were 33 percent and 66 percent (respectively) higher than the letter recipients.
* Even six months after the gifts were distributed, sales for the silver and gold groups were 4.2 and 400 percent higher (respectively) than sales for the letter-only group.
* While both the silver and gold gifts had an impact on both attitudes and behavior, the gold (more expensive) gift did have a much greater impact on this group of customers.
Real World Success Story
OBJECTIVE:
To secure new customers and increase loyalty of existing accounts.
STRATEGY & EXECUTION:
A construction company created the bulldog mascot OTIS (On Time and In Spec) to embody its commitment to its clients. OTIS was featured in promotions and mailers tied to seasonal events throughout the year. NBA tickets, T-shirts and beer stems were only some of the products used in this creative and effective promotion.
RESULTS:
The company enjoyed its highest sales volume in the company's 60-year history.
Improve Response Rates To Advertising Campaigns With
Promotional Products
Promotional product mailings can dramatically improve response rates for campaigns involving other media, such as print advertising. The following study demonstrates this effect.
For this 1996 study, Dallas Marketing Group and Promotional Products Association helped a national tile distributor integrate the use of direct mail and promotional products into an existing print advertising campaign. Response rates were then tracked for a known group of subscribers. Some subscribers received only the trade ad, while others also received a sales letter, a promotional product, or a promotional product incentive. Presented below are the results of this study, followed by a more detailed description of the direct mail campaign:
Findings
* The trade ad alone received a .7% response.
* The addition of a personalized direct mail letter tripled the response rate to 2.3%.
* When a dimensionally packaged promotional product (stress ball) was sent, along with information similar to the letter (but with a bolder presentation), the response rate rose to 4.2% (83% higher than for the personalized letter).
* An impressive 9.55% response rate was obtained by sending out an eye-catching direct mail package that contained a promotional product incentive (for a calculator).
* Of those respondents who were exposed to both the trade ad and some form of direct mail, two thirds identified the direct mail piece as having prompted their response.
Study details: The Dallas Marketing Group conducted this study in 1996, with a total of 82,305 trade magazine subscribers, randomly assigned to one of four groups, which received one the following: trade ad only (n=75,305), trade ad plus sales letter (n=3,000), trade ad plus stress balloon package ($2 perceived value; n=2,000), or trade ad plus the calculator incentive package ($7 perceived value; n=2,000). A total of 886 responses were recorded.
Real World Success Story
OBJECTIVE:
To motivate resellers in a sales contest.
STRATEGY & EXECUTION:
The Santa Ana, CA based computer software/hardware distributor thought that a chance to ride the famed Orient Express would excite resellers to maximum performance. They used a sweepstakes to award six prize trips aboard the Orient Express. An entry to the sweepstakes was awarded for each sale of one of the promoted concentrators, routers or hubs.
In addition to a magazine campaign, five thousand resellers were mailed a sound card headlined "Aboard the Orient Express, you can find mystery, intrigue and suspense." Ripping to the inside cover produced the wail of a train whistle and an image aboard the parlor car of what could be the recipient if he or she won one of the six prize trips.
Key accounts were also mailed an "executive stress train." Designed as a desktop diversion, the promotional gift, with its microchip, recreated the exciting vision of the rail excursion prize, right down to the train thistle, bell and chugging sounds that accompanied a miniature locomotive as it inched its way over a foot-long track.
RESULTS:
The systems marketing manager attributed a 51.3% increase in quarterly sales to the promotion.
Dimensional Mailings Improve Direct Mail Response Rates
The packaging of promotional products can evoke curiosity as well as increase direct mail response rates. A study by Baylor University found that the use of dimensional mailers can significantly improve response rates over direct mail alone.
For this study, 3,000 school administrators were divided into three groups, and received either: 1) an envelope with a sales letter, sales collateral and postage-paid business reply card, 2) an envelope with similar contents plus a promotional product, or 3) all of the contents listed above, delivered in a box with a diecut slot, instead of an envelope.
Findings* Those who received a promotional product in a dimensional package responded at a rate that was 57% higher than those who received the same promotional product in an envelope.
* Response rates for the dimensional package recipients were 75% higher than for the group who received only a sales letter.
* Dimensional packaging made a significant impact on response rates.
Real World Success Story
OBJECTIVE:
To generate leads that would culminate in a 20% increase in revenue.
STRATEGY & EXECUTION:
The commercial photographer planned a mailing to 300 current and prospective clients among art and media buyers, graphic designers and photography buyers. Enclosed in the mail package was a tear sheet of the photographer's ad in a media buying guide and a coaster on which the ad was reproduced. The ad pictured the Scarecrow from the Wizard of OZ holding a brain (remember the OZ scarecrow wanted a real brain instead of straw) with the tagline "Accept No Substitutes." Cushioning the package contents was a bed of straw.
Telemarketing was also used in the promotion.
RESULTS:
A 14% appointment rate was secured from the mailing, and revenues for the quarter were 50% ahead of the Silver Spring, MD firms best quarter.
