Why Top Brands Use Merch to Boost Customer Loyalty (And How You Can Too!)

Searching for that missing puzzle piece in your retention strategy?
We’ve found it.

You’ve done the hard part. Attracting the right customers and hiring great people, that is! But now that you've got them, how do you keep them around?

For employees, you're offering competitive compensation, benefits, and a positive work environment with ample opportunities for growth. But did you know that according to Gallup, employee retention is one of the biggest challenges organizations face in 2025?

For customers, you're providing excellent customer service, building strong relationships, offering incentives, and personalizing the customer experience. Current customers spend 67% more on average than those new to your business, after all.

Interested in adding a shiny new tool to your retention toolbox?

Drumroll, please….it’s branded merch!

We’re talking intentionally curated, premium merch that builds loyalty, boosts morale, and keeps your brand top of mind.

Let’s break it down: how the right merch strategy can turn one-time buyers into lifelong fans and help your team feel like the rockstars they are.

How Merch Moves the Needle

Retention isn’t just about offering discounts or giving someone a gold star. It’s about making people feel something: valued, seen, and part of the bigger picture. Luckily, that’s exactly what great, well-planned merch does.

Tangible = Memorable: A digital thank-you disappears in seconds. A branded hoodie or high-end water bottle sticks around (and gets used daily).

Merch Builds Belonging: Whether it’s a customer repping your brand or an employee rocking your latest drop, merch creates a sense of community and pride.

When you use merch right, it becomes a serious retention power move.

For the Marketing Pros: The Loyalty Program Glow-Up

Old-school points programs are fine, but 10% off won’t cut it anymore. Today’s loyalty perks need to be exciting—things people actually want.

Take Starbucks’ 2025 Traditions reward system. Tested in the Philippines, it’s a seasonal promo where customers collect digital stickers in the Starbucks app. Each qualifying drink gets one e-sticker. Once you collect 17, you can redeem for items like planners, tumblers, and other exclusive merch from the Traditions Collection.

In Canada, Loblaw stores like Zehrs and Shoppers Drug Mart are running a "Collect & Save BIG" cookware program. Shoppers earn stamps on eligible purchases and can trade them in for big savings on cookware.

Both programs turn everyday shopping into a game.

Customers are not only buying; they’re collecting, tracking progress, and aiming for a reward. That’s the power of gamification: it keeps people coming back. In fact, gamification can boost conversion rates by up to 8%, making it a smart move for brands looking to drive more engagement and sales.

Here's another example with a slightly different strategy. Merit, the minimalist beauty brand, is currently giving away a limited-edition baseball hat when customers spend $100 or more. 

A baseball cap? Not inventing the wheel. The beauty here (pun intended) is that this proves even basic merch items done right pull their weight. The hats match their clean aesthetic and gives shoppers a reason to add that last item to their cart.

Smart loyalty programs do more than reward. They inspire action.