In the present-day world of stiff competition, every business is trying to attract customers to its brand. Among various means of alluring customers, one of the effective ways is the gifting of tangible and intangible products.
The corporate sector is one step ahead in this business concept. It creates a touch-point with clients, employees, or prospects by gifting tangibles such as clothing or intangibles such as concert tickets or airfare.
It creates a personalized connection between the giver and receiver of the gift who gives away corporate promotional gifts, highlighting a specific brand of product or service. It creates a feeling of satisfaction among the employees and clients as a token of appreciation. It generates a powerful experience.
Consequently, the employees give the best of their efforts, and the clients don’t switch to other products. In both cases, an atmosphere of “loyalty” is established.
The Psyche behind Corporate Gifts!
Every human action is guided by the psyche working behind it. In the case of promotional gifts, the recipient acquires a sense of ownership over a tangible or intangible product. This, in turn, triggers the psyches of reciprocation and trust, resulting in the endowment effect. An obligatory feeling urges the recipient of the corporate gifts to stick to the existing brand and become loyal to it. New clients receiving the grants will go in for the product.
Reciprocation of Prospective Customers!
Prospective customers have the option to go to any brand. But, once they have a personalized experience with you by receiving and utilizing corporate gifts, 80% of them would prefer to do business with the gifting company. The gift becomes a great motivator if given in the desired shape and form at the right time.
Reciprocation of Existing Clients
The existing clients realize that their loyalty has been acknowledged with appreciation. They will be urged to continue business by becoming brand evangelists. A study shows that consumers having an emotional attachment to a brand tend to have a higher lifetime value of 300%. The gift strengthens the current relationship.
Reciprocation of Employees
Employees are the most valued assets of any corporate organization. Their best contribution leads to the success of the business. When they receive well-designed and exclusively-personalized corporate gifts, they become assured that their employer has appreciated their efforts. The sense of belonging motivates them to add to their productivity and the company’s success.
Once the employees are motivated, they do the job of motivating external stakeholders such as existing and prospective customers. The corporate gifts could be given away on the following occasions.
1. Company Events include Recognition of Service Levels, Years of Service, Milestone years, or completion of skill-up gradation program.
2. Personal Events such as completion of a degree or certificate program, Personal members or new family member, specific personal achievements, or a new home.
3. Special Recognition rewards an employee who went the extra mile to achieve the company’s goal. This may include a suggestion in the process or operation of a machine or procedure that yielded substantial savings in cost.
Statistics Related to Corporate Gifting
There are many reasons for the effectiveness of Corporate promotional Gift. Direct mail has drawn the personal attention of the recipients and triggers psychological and emotional attachment. The following five points show how corporate gifting brings about positive effects.
- Almost 81% of the receiver of emails open, scan, and go through their emails.
- About 75% of the recipient of mail has a strong emotional expectation of receiving something special; hence, they scan the direct mail.
- 79% of clients find it convenient to read mail rather than going online.
- 38% of the recipients of mail confirm that the physical contents of the mail give an opinion about the sender. The production values of mail constitute the value of a brand intuitively and more deeply.
- Compared to campaigns without mail, sales campaigns that include direct mail have 27% more chances of delivering a top-ranking performance. Similarly, they have 40% more chances of delivering acquisition levels of top rankings.
- The endowment effect emerges from physical contact. This is because a sense of ownership is established, which translates into a higher valuation.
Clients Sharing Statistics
It is used for small gifts such as branded socks and eGift cards to increase sales and phone connection rates. They achieve a 20% increase sales by sending a gift before a scheduled call. Moreover, they increased the meeting completion rate by 20%. Inspired by this result, they initiated sending direct mails on behalf of their clients. The result was a 45% reply rate and a 25% conversion rate.
It is a medical device Company. It sent promotional tumbler and Amazon gift cards to prospective customers. The small gifts generated an ROI of 4347%. This initiative resulted in 34 new opportunities and a pipeline value of more than a million dollars.
3: Live Ramp
This company used Sendoso for adding touch points to their event invitations. Their response rates increase by more than 30%. There was also a decrease in response time by over 90%. Their conversion to meetings increased to 35%.
Trends of Corporate Gifting!
Corporate gifting is further evolving with the growth of direct mail marketing and sending gifts. The following are the specific areas of growth and change.
- The B2B sector will grow almost ten times on investment.
- Gifting to employees and prospective customers will consolidate into a single brand initiative. This, in turn, will improve brand perception and recognition.
- Gifting may move into other departments of the corporate sector, such as HR and Customer Care.
- Growth will be supported by automation and improved personalization. Moreover, the items selected for gifting will be more sustainable and inclusive.
Legal Aspect of Gifting!
Due consideration should be given to the mandatory value of the gifts for government employees. Similarly, due care should be taken for guidelines and policies set by employers.
Corporate gifting is oriented towards internal as well as external stakeholders. It has tremendous power for increasing your sales volume and the consequent profitability. It would be best to plan your sales campaign by consulting your marketing division, HR, and Customer care departments.