Does Swag Work as a Sales Tool? (Here’s What the Data Says)
Promotional products, also known as swag, have been around since George Washington’s campaign in 1789. In recent years, companies have integrated swag into their sales sequences, driving significant growth for the industry, with annual sales reaching $23.3B, nearly double what it was a decade ago. However, the question remains: does swag actually work as a sales tool?
The Psychology of Swag
Swag is an investment in building relationships between humans. The concept of reciprocity, as argued by French sociologist Marcel Mauss in his 1925 book “The Gift,” suggests that an exchange of objects between groups builds relationships. When we give someone an item, there is an inherent expectation of reciprocity. This phenomenon is present in everyday life, and it also applies to the sales world.
Swag as a Step
Swag can be a valuable addition to a sales sequence, providing a physical touchpoint in a world of automated campaigns. It can help break the monotony of sales emails and phone calls, making a company more memorable and increasing the likelihood of a response. By sending a personalized item, a sales rep can establish a connection with a prospect, making them more likely to return the call.
What the Data Says About Swag
According to various studies, swag has a high recall rate, is effective in prompting action across all generations, and gives 82% of people a more favorable impression of the brand that gave it to them. However, to truly understand the effectiveness of swag as a sales tool, we need to look at specific data.
A recent experiment conducted by Outreach.io, in partnership with Sales Hacker, found that swag can be a highly effective tool in generating leads and closing deals. The experiment involved sending swag to a group of 500 prospects, while another group of 500 did not receive any swag. The results showed a 26% increase in response rate, with the group that received swag being three times more likely to book a meeting. Additionally, the experiment saw a 2.42x increase in opportunity value per prospect in the test group.
When to Use Swag
Swag works best when it is strategic and tailored to the prospect. The products included in the sales sequence should be thoughtful and relevant, providing value to the recipient. In the case of Outreach.io, the swag included a foam stress toy, a Qi wireless charger, and two corresponding notes encouraging prospects to “bring their sales platform into the future.” The key is to create swag that is “sticky,” meaning it will be kept and used for years to come.
To launch a successful swag campaign, consider two key components:
1. **Audience**: Tailor the item to the lifestyle of the recipient.
2. **Message**: Ensure the item and branding reinforce and support the company brand or campaign theme.
A Note on Attribution and ROI
Like most marketing and sales investments, attributing the effectiveness of swag can be challenging. To measure the ROI of swag, it’s essential to test and track the results. Divide prospects into two groups, keeping the campaign as similar as possible, and deliver swag to only one group. This will help determine the impact of swag on the sales sequence.
The Role of Swag for Your Sales Team
When done correctly, swag can be a valuable sales tool. It provides an opportunity to break through the noise, start a conversation, and establish a connection with a prospect. Key takeaways include:
1. Swag as a step works well when done right, with Outreach.io seeing three times more booked meetings and a significant increase in opportunity value.
2. Invest in swag that represents the brand and will be “sticky,” staying with prospects for years.
3. Experiment often and carefully, tracking the results of the prospecting over the course of the entire sales sequence.
In conclusion, swag can be an effective sales tool when used strategically and tailored to the prospect. By understanding the psychology of swag, using it as a step in the sales sequence, and tracking the results, companies can increase their chances of success and see a significant return on investment.