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.

Findings

Study One – Food Delivery Service – 1993

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 promotion.

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 nothing.

In summary, customers who received promotional products reordered more quickly and ordered more often that those who received no promotional products.

Study Two – Dry Cleaner – 1994

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.

Summary

New customers who received promotional products spent more and were more regular customers than those who did not receive promotional products.