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How to measure ROI on corporate merch programs

8-step guide · merch.am

  1. Step 1: Define KPIs upfront (30 minutes)

    NPS lift, brand recall, retention rate, expansion ARR, lead capture rate, social UGC mentions. Pick 2-3 primary KPIs to measure.

  2. Step 2: Establish baseline (pre-program) (1-2 weeks)

    Survey or measure current state of KPI before merch program starts. Without baseline, no comparison.

  3. Step 3: Choose control vs experiment groups (Variable)

    Identify segment that does NOT receive merch (control). Compare against treated group. If random allocation infeasible, use cohort comparison.

  4. Step 4: Distribute merch + maintain experimental rigor (Throughout program)

    Don't change other variables during program. Track who received what, when, where.

  5. Step 5: Re-measure KPIs (post-program) (Multiple touchpoints)

    30-day post-distribution: brand recall test. 6-month: NPS survey. 12-month: retention rate, expansion ARR.

  6. Step 6: Calculate KPI lift attributable to merch (30-60 minutes)

    Treated minus control = lift. If both moved similarly, no merch attribution. If treated outperformed by significant margin, attribute.

  7. Step 7: Convert KPI lift to revenue/cost (30-60 minutes)

    Retention lift × average client value = revenue retention. NPS lift × historical NPS-revenue correlation = revenue impact estimate.

  8. Step 8: Compute ROI ratio (5 minutes)

    Revenue impact / merch cost = ROI ratio. Industry benchmark: 5-50x for well-designed programs.