How much should you spend on client gifts?

Giving your clients gifts is a great way to show how much you value them and their support of your business. Whether you plan to present them with these tokens of your appreciation at holiday time, for a special occasion, or just to say thank you, these gifts are typically very well received.

Once you have decided that it is time to gift your clients, there are several questions to consider when it comes to how much you should spend in the process. You don’t want to make the mistake of giving a gift that is too lavish or, on the other extreme, give a gift that is a poor representation of your generosity and business.

Here are several ways to determine how much you should spend on client gifts:

• Decide how many clients you want to gift. The number of clients on your gift list will play an important part in your budgeting process for the initiative.
• Evaluate their long-term relationship value to your business. This may help you pare down the list and/or the cost of the gifts. Are clients giving your company business regularly? Is most of their business a one-off? The clients giving you the most business should receive the largest part of your gift budget.
• Know the gift acceptance policy at your clients’ companies. If you work with a lot of public companies, there will likely be a policy regarding the value of a gift that can be received – and at some companies, gifts are strictly forbidden. Knowing these rules can help guide you regarding how much you can spend on each gift.
• Understand what you can afford to spend and when. Although many businesses usually give clients gifts that range from $50 to $1,000 in cost, those numbers may not work for your budget. Also, consider if you are giving gifts more than once a year and what that impact would be to your budget. If you need to reduce your cost for client gifts, opt for quality over quantity, and reward only your best clients.

Your local Fully Promoted team can help you determine the best items for client gifts based on your budget.