The Product Effectiveness Index (PEI) is a new concept developed by The Profile Group that marries science with the art of product selection.
Traditionally product selection for promotional marketing has been made on the basis of what we believe will be effective. ‘It looks good’, ‘I think this fits the brief’, ‘our customers will like this’ and ‘the colour matches our logo’ are the sort of statements we hear when that special product is being chosen. These criteria are essentially subjective and when employed alongside our product selection experience will usually result in good product choices being made – this is what we have traditionally viewed as the art of product selection…. however there is always room for improvement!
Here at The Profile Group we want to combine these subjective elements with a more scientific approach that introduces measurable elements into the product selection process. Ideal for comparing two or more similar items say hello to our PEI!
To give a product a PEI score we only need to understand three basic elements of the product; the cost, the suitability and it’s longevity. Of course the first element (the cost) is very easy for us to calculate. The suitability of a product is calculated by us judging how closely the chosen product relates to the brief and your brand. The longevity of an item is a judgement of the likely period of use of it in a promotional sense. We then plug these figures into our proprietary formula and it gives us a number (the bigger the better).
Let’s look at an example!
Technology Conference Pens
A marketer is deciding on their merchandise for a technology based conference. They wish to purchase a pen to place on the audience members desks to highlight the brand of the main speaker. Typically, they would purchase a budget option ($3000 total job cost) as it is simply a giveaway product, or a metal option ($4500 total job cost) as a higher grade choice. However someone has offered the idea of a stylus pen as it more closely aligns with the event message ($4000 total job cost), and made their case using the PEI formula.
The budget pen was determined to have a longevity of 2 months, and a suitability of 2 out of 5 on the Likert scale as there was an insignificant correlation between the product and the advertised message.
The metal pen was determined to have a longevity of 3 months, and a suitability of 2 out of 5 on the Likert scale as there was the same level of correlation between the product and the advertised message.
The stylus pen was determined to have a longevity of 3 months, and a suitability of 3 out of 5 on the Likert scale as there was a more significant correlation between the product and the advertised message.
We then take this data and put into our PEI calculator and it generates scores for us:
Plastic Pen PEI Score:
Metal Pen PEI Score:
Stylus Pen PEI Score:
By using this formula we can see that the stylus pen although more expensive than the budget option delivers us a significantly higher score, which indicates that it is a more effective promotional tool even over a more expensive product such as the metal pen. The PEI is designed to stop us always focusing on price and to weigh the important factors of suitability and longevity in order to increase potential return on investment. Promotional merchandise is an investment in your brand and when we employ a process that recognises the interplay of price, suitability and longevity we make better product decisions.
Please let us know if you would like to look at some different PEI ratings between products that you are considering.