How Local Businesses Can Benefit from Custom Branded Merchandise
Custom branded merchandise is one of the most underutilized marketing tools in local businesses' toolkits. Branded merchandise is old news and yet most small business owners are not using it.
The fact is, custom merchandise is one of the most effective ways to help local businesses compete against larger companies, without breaking the bank on advertising costs. Let me explain how this works.
Custom merchandise is so effective because the average person keeps it. You see, all the work you've put into that brand awareness with your ads is gone the second the commercial is over, or someone clicks away from that web page. Merch is different. A custom shirt or mug will stay with your customer for months (even years) to come.
Here's what you'll learn:
Why Custom Merchandise Works for Local Businesses
The Brand Awareness Factor
Building Customer Loyalty Through Merchandise
Choosing the Right Products for Your Business
Why Custom Merchandise Works for Local Businesses
Here's the best part about custom branded merchandise. It places your brand right in front of people. A t-shirt being worn down the street or a branded pen being used at a customer's desk is free advertising for your business. And, it costs way less than you think.
Local businesses that want to make an impact should start by partnering with a professional custom screen printing company like Thrive Screen Printing, who offer screen printing in Phoenix, for example. Quality printing is essential and can make all the difference between merchandise that people will actually want to wear or keep on their desks and promotional items that end up at the bottom of a drawer.
According to a study from the Advertising Specialty Institute, the promotional products industry crossed the $26.6 billion sales mark in 2024. That's a record high for this sector.
The takeaway here is that businesses big and small are investing heavily in branded merchandise because it's effective.
The Brand Awareness Factor
Allow me to explain why promotional products are so effective for raising brand awareness. Hand someone a free mug or pen, and they remember who gave it to them. According to one source, 85% of consumers will recall the advertiser that gave them a promotional product.
Compare this with digital advertising where your target audience is likely to scroll past with barely a second glance. Impressive, huh?
Let me break down what makes merchandise different from other marketing efforts.
Tangible – People can see and use it
Long-lasting – Recipients tend to keep promotional products for around a year on average
Portable – Your logo travels with your customer wherever they go
Generates goodwill – Consumers like free stuff, especially if it's useful
Statistics support this too. Consumers are 2.5 times more likely to have a favorable impression of promotional products compared to online advertising. That's a significant competitive edge for local businesses looking to build awareness in their community.
Building Customer Loyalty Through Merchandise
Think about it for a second. Your local coffee shop gives you a free branded mug. How do you feel about that brand?
Pretty good, right? You probably remember them. And, when you're in the market for coffee, your local café moves up the list of places to visit.
This is the power of reciprocity at work. Give someone something, and they want to give back.
Providing a customer with custom merchandise creates an emotional bond between you and your brand. It's a nice way of saying "thank you, and we appreciate your business" without being pushy or salesy.
Here's the beauty of using custom merchandise to increase customer loyalty:
Repeat customers spend more. – People who are loyal to a brand have a higher average order value (AOV).
Positive word of mouth increases.
Your brand is visible whenever they use the product.
Local brands have a significant advantage when it comes to creating merchandise. Larger national chains can print shirts that feature your logo. But, it's impersonal.
A local gym can print t-shirts with their community pride. A local restaurant can create branded products that promote the local area. It's this kind of connection that builds customer loyalty that larger corporations can't buy.
Choosing the Right Products for Your Business
Not all promotional products are created equal. Choosing merchandise that makes sense for your business and customers is crucial.
A custom pen might make excellent business gifts for an accounting firm. But it's not going to help a fitness studio engage its customers.
Think about your target audience:
What do they need in their everyday lives?
What fits your brand image?
What items are useful?
The most effective promotional products are useful items that are relevant to your business. A pet store that gives away branded leash bag holders makes perfect sense, for example. But, a tech company might look into branded phone chargers.
Cheap merchandise will also damage your brand. Customers associate the quality of your merchandise with the quality of your company. Ordering cheap products that shrink or crack on first use, will not reflect well on your business.
It's better to invest in quality products that represent your brand well. Consider these popular merchandise options for local businesses:
Apparel – T-shirts, hats, hoodies, that people actually want to wear.
Drinkware – Water bottles, mugs, and tumblers that people use every day.
Bags – Tote bags, backpacks, and other items that travel everywhere.
Tech accessories – Phone stands, chargers, and earbuds.
The right product for your business will depend on you and your customers. Spend time thinking about what will genuinely help your audience.
Getting Started with Branded Merchandise
If you're ready to add custom merchandise to your marketing efforts, start small. Order a small batch of a single product or two and see how your customers respond.
Are people wearing your shirts around town? Do they use your branded products when out and about? Test to see what resonates with your target audience.
Here's a simple four-step process to get you started:
Identify your most loyal customers
Select one high-quality product relevant to your brand.
Partner with a quality printing company.
Strategically distribute products with high value at events or with purchases
Notice the response.
The local businesses that succeed at using branded merchandise are those who think long-term. They're not just handing out random products for the sake of it. They create items that customers will genuinely value and want to keep.
Wrapping Things Up
Custom branded merchandise offers local businesses a way to build awareness and loyalty that digital ads can't match. Simply put, it gets your brand in the hands of your customers.
It's a powerful marketing strategy, and the statistics support this. Promotional products see billions of dollars spent annually, and with good reason. Businesses clearly see the value.
Local businesses have the added advantage of being able to create meaningful connections with their community through merchandise.
Start with quality products that are genuinely relevant and useful to your customers.
Work with professional printing companies to ensure your brand looks great, and think of merchandise as a long-term investment in your customer relationships.
Your logo on your customer's favorite t-shirt is marketing working for you, long after the ad campaign has ended. And that's the kind of staying power you can't beat.