We know the secret to getting a strong ROI (Return on Investment) on your promotional product investments. It happens through recipient compliance.
Recipient compliance means . . . how many people actually keep and use the product you give out. The more people that keep and use what you give them, the better ROI you’ll have. It isn’t always possible to know for sure, but there are some industry facts that will help you improve your compliance rate. The first step is to not focus on the product you think you need. As stated earlier, there are over a million products that can be branded with you logo or message. The best approach is to complete the Strategies Project Brief process, then evaluate the alternatives to see which one best meets the objectives. This will help you realize the highest recipient compliance rate possible.
Recipient Compliance and ROI case history:
The following is a true story.
Customer: We need 2500 cheap pens.
Strategies Rep: Define cheap.
Customer: .75 or less.
Strategies Rep: So your budget is $1,875? 2500 x .75 = 1,875
Customer: Yep. That sounds right.
Strategies Rep: How are you going to be using them?
Customer: We’re going to hand them out at a show that we’re going to in Vegas. The show runs 3 days. People like something free, you know.
Strategies Rep: I have a question for you. If it were possible (and it isn’t), for you to call all 2500 people that picked up your pen at the show and ask them,” are you using our pen?” How many do you think would say, “ yes . . . I am.”
Customer: Long pause . . . . . . . then he replied: I don’t know, I never thought about that.
Strategies Rep: 50%
Customer: That’s probably high.
Strategies Rep: 25%
Customer: I see where you’re going. That could be high, too.
Strategies Rep: Just for fun let’s say 25%. Here is how that math works out:
- 2,500 pens x .75 = $1,875
- 25% of the pens get used like you hoped they would.
- 25% of 2,500 = 625
- When you divide your total cost of $1,875 by 625 people = $3.00 is your cost per recipient.
- 300% more than you should pay.
Customer: Wow, what do I do? .75 is all we can afford.
Strategies Rep: It’s not your budget, that’s fine. It’s the product. We need to find the very best .75 product possible to drive home your message.
They then went through the Strategies Project Brief process which takes anywhere from 5 to 10 minutes.
The rest of the story:
We presented the customer with a great idea that actually came in at .68 each (.07 per item less than target or $175 total under budget costs). We (the customer and the Strategies Rep) felt confident that if presented correctly to the booth visitors – – 80% to 85% of this product would be kept and used by the recipients.
The new math:
- 2,500 x .68 = $1,700
- 85% of the products get kept and used.
- 85% of 2,500 = 2,125
- When you divide the new total cost of $1,700 by 2,125 people = .80 per recipient.
- 18% more than the .68 each. But only 6.75% more than his budget of .75 each.
What was the product? You’ll need to call or email us for the answer! However, we will share with you the secret to achieving a higher degree of recipient compliance.
When a person receives a promotional product, three things run rapidly through their minds concerning the product and these determine whether they will keep and use the product:
- Is this useful? (The product needs to have a high degree of utility)
- They check for quality (The product needs to be made of good to great quality)
- They look at attractiveness (Is the product attractive and even cool)
If you hit on these three, you have a solid shot at hitting a recipient compliance rate of 80% to 85%.
