The ROI of corporate gifts: what every SME needs to know

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Date: 16 May 2025

A selection of corporate promotional gifts

When marketing budgets are low and competition is fierce, small and medium-sized enterprises (SMEs) need to make every pound count. While digital advertising and social media campaigns steal the spotlight in the marketing mix, one old-but-true, perhaps overlooked, strategy still delivers dramatic returns: promotional products.

Why corporate gifts continue to work

It's easy to assume that in this modern, online-first universe that physical promotional items no longer have their place. But the statistics don't bear that out. 83% of people can recall the brand on a promotional item they've been given, and more than 50% say that it inclined them towards doing business with the company, according to the British Promotional Merchandise Association (BPMA).

Why do promotional products work so well? Easy - they persist. While digital ads disappear the second a campaign ends, tangible items can stick with your customers and prospects for months or even years, delivering consistent exposure.

Think about it: a branded pen on their desk, a personalised tote bag that they carry around, or a customised notebook in their bag equals daily exposure for your brand. This is something that online ads and social media posts cannot match in terms of longevity.

The ROI advantage for SMEs

For smaller businesses with less money to spend on marketing, the goal is always to get the best return on investment (ROI). Promotional products offer some of the lowest cost-per-impression of any form of marketing. Here's why:

A printed pen may cost less than £1 but provide hundreds of uses - each time it is used, it is promoting your brand.

A tote bag branded with your logo is a bag that can be taken out and about, to the supermarket, or to events, and your company is exposed to dozens of people.

Desk accessories like notebooks, desk organisers, or mouse pads with your logo or message sit on customers' desks for months or years, giving continuous brand recognition.

The power of promotional products is not just that they can be seen, but that they can also build trust and familiarity. This kind of brand recognition is invaluable to SMEs trying to make a lasting impression. In fact, 54% of people say they have a more positive impression of a company after receiving a promotional product.

Strengthening customer relationships

Corporate gifts are not just helpful for getting new customers, they are also vital in retaining and cultivating existing relationships. Presenting well-chosen branded gifts to loyal customers, partners, or employees as a token of gratitude can go a long way in terms of enhancing customer loyalty. A well-chosen promotional gift can create goodwill and increase repeat business.

The following are just a few of the ways promotional products can help SMEs:

  • Customer retention: A promotional product can serve as a tangible reminder of your business, welcoming customers to return.
  • Employee engagement: Show your employees that you care with quality corporate gifts. This can enhance morale and increase loyalty, causing employees to feel more valued.
  • Event marketing: If you're showing at a trade show, hosting a seminar, or running a local event, promotional items can attract attention and bring visitors to your booth.

Maximising your merchandise budget

For SMEs, each pound of marketing matters. If you're on a tight budget, it's crucial to choose the most effective corporate gifts - products that deliver value to your brand and your recipients. Some of the most effective and low-cost promotional products for SMEs include:

  • Reusable water bottles: With the increasing focus on sustainability, eco-friendly water bottles are an excellent way of showing your brand cares about the planet while also sticking around offices, gyms, and parks where your logo will be visible.
  • Branded notebooks and pens: Suitable for any office setting, these will be used every day by your customers, gaining more exposure with each note they write.
  • Tote bags with logo: Ideal for events and trade shows, tote bags are practical and highly visible. They will be used in public, so your brand reaches a greater audience.
  • Tech accessories: Items like branded headphones, phone holders, and power banks are always appreciated and used daily in our tech-enabled world today and are ideal for businesses in the technology or B2B sectors.
  • Eco-friendly products: If your audience is environmentally conscious, choose eco-friendly promotional products such as bamboo pens, recycled notebooks, or organic cotton tote bags.

Measuring the impact: How to track ROI

A priority for any SME is understanding how to gauge the return on investment (ROI) of their marketing. With corporate gifts, this is achievable by using several methods:

Final thoughts: a wise investment for SMEs

Corporate gifts are far more than a promotional stunt - it's a strategic investment that offers exceptional value for SMEs looking to create awareness, build loyalty, and drive sales. Branded products, when used judiciously, not only provide you with excellent ROI but also allow you to create a lasting impression on customers, employees, and business partners.

  • Surveys: Query your customers or attendees at events about how they heard about your company, and if the corporate gifts played a role in their decision to buy or get involved.
  • Tracking codes: Add QR codes or personalised URLs to your branded items to monitor how frequently individuals interact with your brand online after they receive the products.
  • Sales impact: Monitor the sales boost or leads created following the distribution of business gifts. This can be particularly useful for product launches, special events, or trade fairs.

For small businesses wishing to stay in the game and stretch their marketing budget further, corporate gifts represent a cost-effective, efficient way to enhance your brand's credibility and visibility.

Copyright 2025. Featured post made possible by Gift Campaign.

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