Fiveash says, “We don’t have a magic bullet about how to weather inevitable downturns, but watching expenses, making sure existing good customers are happy, and being proactive about prospecting sectors that might be doing better are all important ways to come out the other side in better shape.” Brand Building Promotional products create and reinforce consumers’ relationships with brands during the best of times, but during a down economy they are particularly important. PPAI’s research shows that 67% of people would like to receive promotional products from brands they know and like. This is particularly prevalent among people between the ages of 35 and 46, with more than two-thirds receiving promotional merchandise from their preferred brands. The 35-46 age group is also the most likely to receive promo from the brands they know and like. And they return the attention. PPAI’s survey found that this age group is the most likely to purchase a product from a known company that sends promotional products over a known company that does not. Among those that aren’t familiar with a brand, 61% said that they would look up a brand they didn’t know if they received a promotional product from them. And promo’s goodwill extends to products consumers aren’t necessarily in the market for. The Association’s study found that 62% of people think positively about a brand they cannot afford if they receive promotional products from them. “It’s a tricky balance to make sure that we provide value to our clients’ brands when finances are an issue,” says Keister. “Our sportscentric clients utilized promo to continue programming at home when gyms were closed. We created journals to encourage daily activity and mental health check-ins for those same groups. Our restaurant clients worked with us to create items that enhanced takeout and delivery orders. We created various online fundraisers using T-shirts, drinkware, even charcuterie to help nonprofit clients that lost significant income due to lack of in-person events.” Customer Relationships Promotional products are invaluable tools for reinforcing businesses’ relationships with their clients. The survey results were robust across all age groups, peaking among consumers between the ages of 59 and 74 (90%). Overall, the study found that 83% of respondents identified promo as strengthening their loyalty to the brands they already do business with. “It’s mostly about staying connected to your audience,” says Fiveash. “If marketing budgets are one of the first things clients cut, maybe we can show them that they can stay ahead of their budget-cutting competitors by using creative branded merch to raise awareness. The perfect time to grab market share is when your competitors are lowering their visibility. “Maybe we can show them that if they must cut somewhere, then the ROI-creating merch solutions we’re showing should be last on the list.” Promo also can play a role in mitigating business pressures stemming from a recession. As companies start to downsize and tasks are given to employees who may have less training, PPAI’s research shows that promotional products offer a way to help businesses maintain a positive feeling in the minds of their customers: • A clear majority of consumers (81%) would come away with a positive impression of a business if, along with the resolution of a customer service issue, they received a promotional product. • Consumers between 59-74 are the most likely to think positively of a brand after having a customer service issue resolved if they receive promotional products. Businesses’ core ideals are reflected in their customer connections. “It was important to us to lean into our mission to make the world a better place,” Keister says. “So, no matter what, we put our clients first, we were transparent with the issues surrounding inventory and production, and leaned in with suppliers that share our beliefs. Buckling in during the downturn actually set us up for growth when the skies started to clear.” Khattak is the senior digital editor at PPAI. Must Read | Promo In A Down Economy A shareable, client-friendly summary of PPAI’s study of promotional products’ performance in a down economy is available at PPAI.org/Research. PPAI members also have access to the full results of the survey. 68 • JUNE 2023 • PPAI
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