DEVELOPING A CORPORATE GIFT STRATEGY
Introduction
There are plenty of good reasons why the corporate gift market in the United States is estimated at $125 billion annually. Perhaps the best reason is simple – People like receiving gifts and look kindly on the brands that provide them with something they will enjoy using. Considered the ultimate form of targeted marketing, strategic corporate gift-giving enhances critical relationships for a brand by creating personal connections with the recipients.
With these important goals in mind, each corporate gift given to clients, potential clients, and employees has a critical mission. In this whitepaper, we will explore the strategy behind that mission and how best to execute it.
Defined: Corporate Gifts and When They are Given
Corporate gifts are products given by companies to show appreciation and deepen their relationships with important audiences. Brands provide them internally to employees and externally to clients and prospective clients. Usually considered a key element of a brand’s marketing and communications programs, corporate gifts are meant to work in synergy with the rest of these efforts.
To properly communicate appreciation through corporate gift-giving, brands must understand the attitudes, expectations, and experiences of recipients. This maximizes the experience of each gift recipient while simultaneously advancing the brand’s objectives in giving corporate gifts. Companies give corporate gifts to recipients at carefully chosen times in their interaction with their brand.
Internal corporate gifts to employees are commonly given as:
- Loyalty/work anniversaries
- Performance recognition
- Holidays
- Onboarding
External gifts for clients and potential clients are commonly given as:
- Welcome for new clients
- Rewards throughout the buyer journey
- Loyalty to the brand/continued patronage
- Referrals
- Downloading content
- Event attendance
- Lead connection
- After product or service demonstrations
THE BENEFITS OF CORPORATE GIFTS
Understanding how you expect your brand to benefit from corporate gift-giving is the first step in creating a meaningful strategy for this marketing tool. Below are just a few of the many benefits of corporate gifts.
- Increases Brand Recognition – Every time employees, clients, or potential clients view and/ or use a branded corporate gift, your brand remains fresh in their minds. Those who see the gift also become acquainted or reacquainted with it.
- Enhances Business Development Efforts with Prospects – Giving a well-timed corporate gift as part of the pitching process for new business can often make the difference between a sale and no sale. The gesture will likely provide that little something extra as the recipient weighs making a purchase.
- Encourages Client Loyalty – Staying top of mind with clients in positive ways is essential in your efforts to both keep their business and encourage them to do more business with your brand. Giving quality corporate gifts is an effective way to let them know that you appreciate their business and hope to serve them further. The gifts can also be used as a sales trigger for clients who have not made recent purchases.
- Boosts Employee Engagement, Morale, Motivation, and Loyalty – When you give employees corporate gifts they can use, they feel recognized and valued.
CREATING THE RIGHT CORPORATE GIFT STRATEGY
Once you understand the goals that you would like your brand’s corporate gifts to achieve, it is important to fully strategize the process involved in creating and distributing them. In doing this, you increase your chances of corporate gifting resulting in both enhanced revenue and image for your brand. As you create your corporate gift strategy, consider:
Recipients’ companies’ gift policy (if applicable)
Before giving any type of corporate gift, make sure to research whether gifting is allowed at your clients’ companies. Some may have a specific dollar amount over which a gift cannot cost, while others may have a no-gifting policy.
While most brands typically give corporate gifts to employees and clients at the end of the year holiday season, there’s something to be said for giving your gifts at random and varying times of the year. This way, they do not become expected year over year by recipients and instead become a true surprise that delights and doesn’t get lost in a sea of holiday gifting. These gifts can be effective as one-offs or as part of a series that continually keeps your brand top of mind.
However, it is important to note that corporate gifts should never be construed by the recipients as bribes. Consider the relationship your brand has with a potential recipient and make certain that the gift is not misconstrued as inappropriate. For example, provide your gift to show gratitude for a client’s business or a potential client’s time in hearing about your brand and its offerings. Do not give a gift when you are asking a client or employee to do a significant favor.
The type of gift your corporate gift recipients will value
Once you have considered the policies and timing of your corporate gifts, research the types of items your recipients value. Gifts should be based on the type of company they have; the industry they are in; their companies’ geographic locations; and their interests whenever possible. Personalizing the gifting process shows that you understand what is important to recipients and so are likely to provide them with relevant products and services.
How your corporate gifts will be branded
While your corporate gifts must be a distinctive representation of your brand, also keep in mind how this is achieved. Ask yourself – Does branding on this gift make it look like an advertisement?
Your branding on corporate gifts should be subtle, keeping in mind that the goal is offering clients, prospects, and employees a personalized gift they appreciate serving as a thank you to them with a reminder of your business. Consider placing your logo on a less visible part of the gift, or even pair your logo with the client’s logo to underscore your brand’s relationship with them. dental practice alongside providing the best medical attention for your patients is patient satisfaction.
Branded promotional items that have been carefully selected should be considered part of your ongoing marketing program.
Corporate gifts that tell a story
A recent study of corporate gifting among 1,000 people who have received a business gift from a business partner or employer within the past year found that C-suite executives are especially impacted by a gift that tells a story and facilitates a deeper personal connection, which 94% of top executives believe is important to business success.
With this in mind, consider explaining how the gift relates to the recipients’ goals, pain points, or other issues important to them, and make sure to explain that – hopefully in the choice of gift and any additional messages sent with it.
BUDGET BUILDING FOR CORPORATE GIFTS THAT SUPPORT YOUR BUSINESS AND MEASURING THEIR SUCCESS
As you build your corporate gifts budget, first consider the return on investment (ROI) you expect to receive from them. The study with 1,000 people who have received a business gift from a business partner or employer within the past year found that more than 80% of C-suite executives believe corporate gifts generate measurable, positive ROI in addition to intangible benefits. In addition, about 57% of the study’s respondents said that “gifts can impact their opinion of a business partner both positively and negatively.” With these results in mind, you will want to make certain that the corporate gifts you send are items that associate your brand with quality, client service, and relevance.
Budgeting for them should take into account several factors:
- Loyalty in the form of years of service for employees and the form of years of patronage for clients.
- The results you expect to receive from giving the gifts.
- Long-term client business.
- A realistic assessment of what you can afford to spend on corporate gifts.
Most marketing professionals create a year-long budget for corporate gifts by reviewing the prior year’s budget and actual spending. Because 2020 and 2021 were unusual years for most marketers, you may want to consider 2019 figures in addition to those of 2020 and 2021. As you decide what percentage corporate gifts and other gifted promotional products should be within your entire budget, consider how effective they are for promoting your brand. A single promotional item averages 344 impressions per month, according to research from PROmotion Marketing, LLC.
Promotional products also have one of the lowest cost per impression ratio – about .6 cents per impression, according to the Ad Specialty Institute (ASI), the promotional product industry’s largest membership organization. Compare this to the cost per impression of television and magazine ads, which is about 1.8 cents per impression. One reason why promotional products have the edge over other types of advertising in terms of impressions is that 81% of consumers keep promotional products for about 1 to 5 years. The longer a product is kept, the more impressions it will make – both from those who keep the product and others around them who see it. To calculate an approximate return on impressions, marketers use Cost Per Thousand (CPM) as a benchmark. Divide the total cost of the item by the number of estimated impressions, and then divide by 1,000.
Consider the research on promotional products as effective marketing tools that Promotional Products Association International (PPAI) and PROmotion Marketing conducted of consumers throughout the United States:
- 90% of those who receive a promotional product can recall the name of the brand.
- 89% of consumers can recall the brand on a promotional product they received in the last 2 years.
- 80% of consumers can recall the messaging of a brand after receiving a promotional product.
- 80% of consumers have an immediate reaction when they receive a promo from companies they’ve never heard of.
- 82% of consumers have a more favorable impression of a brand after receiving a promotional product.
- 70% of brands consider promotional products mostly or always effective in achieving marketing goals.
- 53% of the time, a promotional product creates a more favorable impression of the advertiser.
Popular Corporate Gifts
Corporate gifts that align with the interests and values of their recipients come in a wide range of options that suit even the smallest of budgets. The key to their effectiveness is their relevance, quality, and duration of use. Some suggestions of corporate gifts that are often well-received:
- Table clocks or other types of timepieces
- Unique writing instruments
- Coffee kits
- Gym kits
- Travel kits
- Potted plant kits
- Mini Terrariums
- Luggage tags
- Water bottles
- Mugs stuffed with holiday ornaments and/or candy
- Zagabooks with items such as hand sanitizer, lip balm, chocolate, mints, and compact mirrors
- Pet toys
Partnering with the Right Corporate Gift Provider is Key to Your Creating a Successful Corporate Gift Strategy
To achieve the goals of successful corporate gifting and HR campaigns, work with a creative and reliable promotional products partner that can demonstrate their expertise and experience in delivering materials for effective marketing campaigns. At Fully Promoted, we have more than a million different products for you to choose from as you plan virtually any type of campaign involving corporate gifts and other promotional products. Our local experts take the time to talk with you about your goals and budget so that recommendations can be narrowed down to those that will provide the most impact.
Our Fully Promoted locations across the country help clients domestically and internationally. They provide access to samples that you can touch and feel, plus offer personalized service to assist you with product selection and decoration methods that provide the best representation of your brand. Fully Promoted works with a wide range of industries from healthcare and non-profits to construction firms and schools. Contact your local Fully Promoted today to begin planning your successful corporate gift strategy.