How Does Corporate Gifting Benefit Businesses?
Bejoy Peter • April 11, 2021
Corporate gifting is the practice of creating a touchpoint with employees, clients, or prospects through the use of a gift—whether giving a physical item such as a practical swag piece, an edible treat, or personalized clothing item, or via a non-physical gift such as an eGift card or an experience (such as airfare or concert tickets).
Why is Corporate Gifting Important?
Receiving a gift is a powerful experience; it creates a sense of connection to the giver and can create positive associations with a person or a brand. Companies and marketers have long relied on the power of gifting to secure better relationships with potential and existing clients, to show appreciation for their business When used as part of your overall marketing or employee retention efforts, gifting can be highly effective in terms of ROI and satisfaction.
The Psychology of Corporate Gifts
The effectiveness of gift-giving has a strong correlation to its psychological impact on the recipient. If you’ve ever gotten an unexpected surprise or treat (either in person or by direct mail) you’ve personally experienced this phenomenon in action. This is partly because physical contact with a gift results in the Endowment effect—a sense of ownership over an item which translates into an individual valuing it more highly, according to a study on the effects of gifting on business outcomes. It also influences feelings of reciprocity and trust. This effect can be seen in the results of marketing and gift-giving in several common scenarios of corporate gifting.
For Prospects
Gifting can motivate those who are not yet your customers to become one. In fact, 80% of consumers say they are more likely to do business with a company if it offers personalized experiences, according to Instapage. Sending the right gift at the right time can be the motivator for prospects to take a desired action, such as completing a purchase, signing up for a service, or making a discovery call.
For Clients
Clients too can benefit from a well-timed gift. It can let them know their business is valued, encourage them to continue their service or become brand evangelists, and has the power to bring your company back to top-of-mind in cases where it’s been a while since the last interaction. According to a retail study, consumers with an emotional connection to a brand have a 306% higher lifetime value.
For Employees
Clients and prospects aren’t the only people businesses need to consider. In many cases, the key to great customer outcomes starts much closer to home. In fact, a study reports that 57% of people claim that receiving mail makes them feel more valued. This statistic relates to direct mail gifts; however, if you’ve ever been the recipient of some nicely-branded, high-quality apparel you know it can work for your staff as well.
These gifts, especially when they are of good quality and well-personalized, create a feeling of being valued by your employer and foster a sense of belonging and connection to the team. These feelings translate into the way employees go about their roles, and the quality of service they provide to external stakeholders, customers, and prospects.
gifting EMPLOYEE WELCOME kits - curated by eetee
We know you love great Sportswear, just the way you love your Sport!
Running an organization is not just about sales, customer acquisition and profits. It’s also about creating a culture that can inspire people to join hands and work together in a friendly environment. One of the first steps to achieve this is having branded uniforms in your workplace.
Giving business gifts to your clients, customers and employees is a key strategy to boost your companies performance and growth. In fact, companies that use non-monetary incentives for customers and employees have recorded a 9.6% increase in annual turnover and an increase in productivity of +14%.
