Any business organization is not charitable; therefore, you cannot think of giving away something without getting something.
Why is Corporate Gifting Crucial?
Corporate gifting is a long-term business benefit disguised as “charity.” This is where the concept of corporate gifting may be subjected to question. What tangibles will you get immediately in return for a corporate gift. You may also ponder over how much you should spend in the shape of Business promotional products.
How do the Benefits Come?
Nothing comes free in this world; therefore, if you are parting with any freebies for Business promotional products, you establish your entity and identity with the internal and external business stakeholders. As Internal stakeholders, employees play the most crucial role.
The external stakeholders are existing and prospective customers. On receiving the gifts, they adherently or inadvertently reciprocate by adhering to your brand or opting for it. Consequently, your sales, profitability, and ROI increase. The ultimate benefit in monetary terms may be in multiple of your investment on freebies.
Purpose of Corporate Gifting
Business thrives on the relationship based on the concept of “give and take.” The medium is distributing presents of different prices, forms, and styles. In 2017 alone, corporate gifts totaled $22 billion. This has an increasing trend. The facility is given as a token of what benefits have been received or are expected. The personalized gift is a touch point of the company’s connection with the customers or employees.
December is the end of a calendar year, followed by New Year’s Day; it is chosen for corporate gift-giving. This period marks the signing of any new commercial deal or contract. Corporate gifts are also distributed when a new product has been launched, or unique market regions have been approached. Besides, donations can also be given away during the trade fair, exhibition, workshop, or other business events.
Corporate gifting also encompasses employees for commemorating an important event, remarkable achievement, or suggestions for cost reduction. While gifting government employees or high-profile corporate executives, the policy or ethics underlying gifting should be kept in mind.
1: Improves Customer Relationships
To keep yourself abreast of your competitors, it is rather a need for your business to grow by retaining the existing customers and alluring the prospective customers. The current customers realize that you have acknowledged their adhering to your brand. Similarly, you get introduced to the prospective customers and continue the relationship for further business.
Corporate gifting may also be taken as a means of thanksgiving for the patronage you received from your existing customers and employees. A personalized note tagged with the gift enhances the value of giving manifold. To a conscious mind, any favor becomes obligatory to return. This subliminal desire to produce leads to mutual trust and dependability. The stronger the relationship, the higher will be your financial return.
2: Increase Productivity
Most employees have the attitude of “let go.” They put the minimal effort as will be officially required of them. But once they receive a corporate gift for their hard work, they contribute the best of their actions. Besides inspiring the rewarded employee, the gift becomes a motivator for other employees. The productivity and consequently the profitability will increase.
The motivated employees will provide improved customer service, generating more satisfied customers. When employees wear or use a uniform promotional item, they feel the organization’s sense of belongingness. Their common pride causes the feeling of community living and deepens the bondage of togetherness. The cumulative effect is the increase in productivity of the organization.
3: Publicity of the Company
Gift-giving always goes with a “giver’s image” and thus increases the image of your company. The brand and logo of your company on a gift box are exposed not only to the recipients of the gift but also to the onlookers who happen to be near or around them. The recipients may present the gift to some friends and relatives. Thereby, your brand gets more exposure and publicity.
You can send promotional items to prospective customers by mail or in person. It is observed that after a year of receiving the gift, 66%of the recipients recollect the name of the brand featured. Similarly, 24% of prospective customers are converted into new leads while pursuing new businesses.
4: Boosts Your Company’s Reputation
A gift recipient develops an emotional attachment with your company and your brand. Thus your reputation as a considerate and compassionate organization is established. Therefore, it is a smart move to launch corporate gifts and establish your reputation in the market. This, in turn, adds to the credibility and marketability and the consequent profitability.
Words of mouth spread faster than any other advertising medium. Once people are aware of your reputation, they recommend to their friends and relatives to opt for your products besides becoming loyal to your brand. They may also come forward to give positive reviews in the media, which will attract other customers.
One of the best marketing strategies is “referral,” which increases revenue without financial involvement. One who refers also does not have to spend anything. This is where the “brand reputation” works. Statistics reveal that 27% of the recipients of corporate gifts unhesitatingly extend references for branded products.
Those who work hard for the organization expect that their extra effort is recognized and rewarded. When you give custom gifts to such employees, you establish a kind of goodwill with your employees. Therefore, the proficient professional will be attracted to join and work for an organization having a good brand reputation.
Give and take, or “reciprocity,” is the primary corporate giving concept. It becomes obligatory to return in some form or other when you receive something. Just as you get the self-satisfaction of giving, the recipients satisfy their “ego” by receiving something tangible or intangible.