Corporate Gifting - what you need to know
Published:14 Jun 2022
Do you remember the last time you received a corporate gift? It might have been something minor, like a pen or a mug, or it could have been something much bigger, like a hamper, a box of wine or something unique. We bet on your desk or in your home is something you received from a business. Promotional items are one thing - but more considerable corporate gifts are where the magic happens.
**A corporate gift is a gift sent from a business to an individual or a group, sent to build a relationship. **
It is not transactional and doesn't come from a requirement. (This type of model is an incentive.)
Whatever your position in a business, you may be new to sending corporate gifts - and wondering why they should have a line on your marketing budget. We will delve in and help you get all your questions answered.
- Corporate gifts work hard to win business and retain it
Corporate gifts have been around for centuries! The tradition started in ancient Rome, where companies would give their employees presents during the Saturnalia festival. This practice eventually spread to other countries and cultures, becoming a popular way for businesses to show their appreciation to their clients. B2B, B2C, eCommerce - it's all human to human, and a corporate gift budget allows you some room to impress when you need to.
2) Corporate gifts are sticky
There are many different types of corporate gifts that companies can give. However, the most popular corporate gifts are usually practical items that can be used daily, like mugs, pens, or notepads.
Your parents probably had some branded items from a business in your family home. Your friends probably have stories about companies that went the extra mile to keep or get their business by sending them a small token. Corporate gifts work so well because they show you are willing to spend money on them. In addition, sending an appropriate gift at the right time can go a long way in building relationships with your potential and existing clients.
At Simply Thank You, we do have these low-value items, but we believe in a world of social media, the best approach is a gift with a 'wow' factor. A large, branded box, beautiful ribbon and wrapping and a custom gift they can't get anywhere else is an excellent example of your kind of business.
3) Corporate gifts don't have to cost much.
The average spend in the UK on corporate gifts is £173 per person, with the most popular corporate gifts being food and drink hampers, followed by experience days and gift vouchers. (Source: Statista). Compare that to any other marketing activities to generate leads - events, trade shows, corporate dinners, sponsorships, PR or paid search, and it seems pretty low.
Getting corporate gifts right takes some time and effort.
Here's the tricky bit. You can't simply gift everyone in your whole database. Some segmentation is needed first, which can be off-putting to a busy marketing manager who needs to get corporate gifts to the right people - and see a return on investment.
Here's what you need to know.
Who should you send corporate gifts to?
This is down to your strategy, but perhaps you would start small. Ideas include:
- Loyal customers with tenure over X years
- New customers who joined in the last X months and have spent X
- New customers who joined but haven't spent anything yet
- Customers who have logged a complaint in the previous year
- Customers who previously spent large amounts but haven't spent this year
- Customers who have recommended your service
- Customers who have spoken with you on social media
- Customers who have switched to your service
- Customers who left in the last year you would like to win back.
These are just some ideas. Perhaps one product range or service is of value to your business. Corporate gifts can be used to help reward people who spend in this area. You may be B2B or B2C. Either way, your strategy plan is critical. You can develop a budget by looking at the volume first - or the corporate gift value first.
For example, you might wish to spend £50 on gifts - and times this by the relevant database numbers you have, adding on delivery and customisation after.
Alternatively, it might be easier to look at potential marketing spend of, say, £50,000 and allow flexibility in the range of corporate gifts for all the individuals you wish to send to. That means a premium or VIP customer will get more than someone who has just switched to your service.
The route you go will depend on how firm your budget is.
Testing the water on corporate gifts
Often clients wish to test the water on a corporate gifting campaign. This is a great idea, and we want you to have the confidence it will work. A small yet significant proportion of customers can be selected for gift delivery, allowing you to track the results.
This could be
- Positive social media mentions
- Increased business
- Improved referrals
- Enhanced NPS scores.
There are many ways to undertake corporate gifting, but we recommend you speak to us. We've helped leading global brands get corporate gifting right for the last 30 years, and we'd love to help you too.