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.
Step 2: Establish baseline (pre-program) (1-2 weeks)
Survey or measure current state of KPI before merch program starts. Without baseline, no comparison.
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.
Step 4: Distribute merch + maintain experimental rigor (Throughout program)
Don't change other variables during program. Track who received what, when, where.
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.
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.
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.
Step 8: Compute ROI ratio (5 minutes)
Revenue impact / merch cost = ROI ratio. Industry benchmark: 5-50x for well-designed programs.
How to measure ROI on corporate merch programs
8-step guide · merch.am