A corporate gift strategy has significant ROI. It makes the recipient feel appreciated and valued. They will also want to reciprocate the gesture.
In the United States, business gift-giving is a booming industry. It is valued at an estimated $22 billion. Many organizations gift their employees, clients, and prospects on many occasions, most so during the holidays. Why do companies do that? What do they stand to benefit from after splurging significant amounts of money on corporate gifting?
This article provides a deeper understanding of corporate gifting and insights into its impact on company growth.
What is Corporate Gifting?
Corporate gifting or business gifting is the means of creating a strong connection with customers, staff, and prospective clients by offering them physical and non-physical gifts. There are many options that a company may consider as a gift for an employee or client. For instance, a practical swag bag/hamper or a customized piece of clothing is an excellent physical gift. An example of non-physical gifts is a vacation voucher for a holiday getaway.
Why is Business Gifting Important?
If you have ever gotten a present, you understand the warm feeling one experiences. It is the same case with corporate gifting.
Gift giving at the corporate level is a powerful experience. It creates a touchpoint between the giver and recipient. The latter feels more appreciated and connected to the giver. They feel part of the company.
For many years, organizations and marketing professionals have leveraged the power of gifting to create warm, long-lasting relationships with their existing and prospective clients. Marketers incorporate gifting as part and parcel of their marketing strategy. It provides significant ROI and satisfaction.
Businesses need to match the gift they offer with the occasion of the event. That ensures that the goal of offering the present is achieved.
Corporate Events – These are business events held to appreciate employees in a company. It may be Years of Service, Completing a Vocational Training Program, or Best Employee of the Year.
Personal Events – A company might offer gifts when a staff member welcomes a newborn in their family, obtains a higher learning certification, personal achievements, or purchases a new property.
Special Gifting – Providing gifts to recognize a special/unique event. For example, an employee whose efforts led to the achievement of a specific goal. Perhaps they went an extra mile to save the day; these are occasions that warrant gifting.
Why do Companies Give Corporate Gift Products to their Employees and Clients?
According to Forbes, businesses practice gift giving because of the return on investment (ROI). Eighty percent of C-suite executives support corporate gifting because it generates positive returns, especially when it tells your brand’s story. It should create a deeper and meaningful connection. Additionally, 94% of top-management executives say that a business gift strategy is important for business growth.
There are two main reasons why companies offer business gifts:
Appreciating loyal customers for bringing business to the company
Awarding outstanding employees for the tremendous work they’ve done on the company’s behalf
Whichever the reason, the goal remains the same: To strengthen relationships and improve personal connections between the brand and the recipient.
The secret to gift-giving is to personalize the item. Manufactured gifts come in all shapes, sizes, and colors. Offering a generic gift won’t evoke a sense of appreciation because it is something anyone can have. That’s why most companies focus on customizing the gift to the recipient’s tastes and preferences. It shows that you know them at a personal level. It makes them feel part of the family.
The Psychology of Corporate Gifts
Corporate gifting is an effective marketing tool because of the psychological impact it has on the recipient. Imagine a friend popping in your office bearing a personalized gift for you. Perhaps your local shopping store has sent you an email with a shopping voucher to appreciate your repeat business. The mental effect that the gift has on the recipient makes them happy and wants to be more connected with you.
The physical contact that one has with a gift creates an Endowment Effect. The gift is personalized to the recipient’s taste makes them appreciate it more. Combine that with the sense of ownership over such a special gift improves the bond one has with a brand. In turn, the recipient trust and would likely reciprocate the act by bringing in more business. Some would be more than glad to recommend your products and services to their friends, colleagues, and neighbors.
Corporate Gifting Statistics
Having a corporate gift strategy is beneficial. The following are some statistical data to support that.
Over two-thirds of businesses (about 65%) gift their clients throughout the year, Twenty-four percent offer gifts at the end of a financial year.
An estimated 75% of people go through their direct mail. They are driven by the emotional response of receiving a gift tailored for them.
Food items are the most preferred gifts sought after by customers. About 49% prefer receiving chocolate, SWAG hampers, and alcohol. Forty-seven percent love getting gift vouchers, tech items (28%), and stationary (27%).
Approximately 40% of people say that the physical properties of mail influenced how they perceived a brand. The aesthetics and production values of a physical mail instill brand value effectively and intuitively.
Seventy-nine percent of clients find reading physical mail more convenient than reading it online. Besides, you can access it easily because it’s already in the mailbox.
How to Choose the Right Corporate Gifting?
When choosing a business gift for your employees or client, you need to know their tastes. Personalizing the gift is more likely to evoke a quality reciprocal response from them. You might decide to engrave their name on a pen/office cup. It makes the gift special.
You also need to have a budget. Choose an item that is reasonably priced. Don’t select something overly lavish. A highly proceed gift looks like a bribe. What you want to do is motivate without denting your company finances.
You also need to consider the level of relationship you have with the recipient. Understanding that enables companies to find the right gifts and the right manner of presenting them.
Why is SpotyPal the Best Corporate Gift for Employees and Clients?
The SpotyPal device is a portable item that enables people to upgrade their lifestyle. It offers a convenient means of dealing with everyday life problems such as:
Tracking Misplaced Items
The device uses Bluetooth Connectivity. Once the employee or client receives SpotyPal, they can attach it to their personal item. If they leave an item behind, they will receive an alert on their phone, signaling that something is left behind. For instance, you can use the SpotyPal device to track your misplaced phone or key.
For the User’s Safety
The SpotyPal tracker comes with a panic button that sends an SOS alert to predefined individuals when they are in a dangerous situation, and they cannot make a call. The device sends out SOS messages as an email or phone alert. The user sets the mode that works best for them.
The SpotyPal Software Development Kit (SDK)
Furthermore, users can enhance their functionality by creating their own app on their phones using the SpotyPal Software Development Kit (SDK). The kit comes with all the resources needed to complete the application on Android and iOS platforms.
The Bottom Line
SpotyPal tracker is an excellent corporate gift that your employees and clients will appreciate. It’s small, but packed with an amazing set of features that will help them upgrade their lives. SpotyPal provides security and convenience. It is also a time-saver because you’ll easily locate your lost or misplaced items and provides security and convenience. And if you want to, you can customize it with your brand’s logo and add a personal touch that really shows your appreciation.