Neel Patel  April 1, 2022

Why Is Corporate Gifting Important For Companies In 2022?

Corporate is the unified body of individuals working together for a corporation. Corporate gifting is commercial practice and part of a marketing strategy to increase the sales volume or achieve new sales.

Corporate Gifting

The strategy is to create a touch point with clients, employees, or prospective audiences by giving away a gift. It may be tangible such as a practical swag piece, a personalized clothing item or edible treat, an eGift Card, or an experience such as concert tickets or airfare to a tourism destination. Whatever be the gift, the ultimate objective of corporate promotional gifts is increasing business.

Reasons for Corporate Gifting

• Creates a powerful sense of connection with the giver
• Receiving a gift instills a feeling of special recognition and acknowledging gratification.
• Exhibits appreciation for the past.
• The expectation of god work in future
• Employees are the greatest assets for a corporation, and corporate gifting is essential for retaking their services and bringing down turnover.

Psychology of Corporate Gifts

Receiving gifts create a psychological impact on the recipient. You will have to pay for it when you own or acquire something. But when you receive a corporate gift, you don’t have to pay for it but reciprocate by doing something good for the giver. This is termed the Endowment effect or the sense of ownership over some item. As a result, you get different reactions. The corporate gifs act as goodwill gestures mementos and help to reinforce your brand.

• Prospects: Prospects are the key group to whom corporate gifts can be given. You send the right talent at the right time for completing a purchase or making a discovery call. They are yet to come within your marketing domain. So, 80 % of the prospective customers say they would be more interested in doing business with the corporate gifts’ giver.
• For Clients: The existing clients get the satisfaction that their business with the corporation has been duly valued. So, they will be encouraged to continue the business. At the same time, they will be inclined to recommend your products or services to friends and acquaintances. They make an emotional connection to your brand.
• For Employees: Irrespective of the occasion, when you give any corporate promotional gifts, the morale of your employees is boosted. Employees are just not material tokens. They are to express gratitude, and the gif gives them the opportunity. They feel valued and appreciated.

 

In a survey of employees’ happiness, 45% of respondents said they believe that team appreciation gifts reflect their importance at a company. This determines their roles and the quality of service they provide to customers, external stakeholders, and prospects. The gift fosters a sense of belongingness and the feeling that their employers value them.

Events for giving Corporate Gifts

• Personal Events: New family members, completion of a certificate, personal milestone, new home, degree program, or another potential achievement.
• Company Events: Years of Service, service level recognition, milestone years, completion of a specific training program, skill up-gradation training program, Quality-related workshop or seminars.
• Special Recognition: Rewarding employees’ events for saving the day or for an act of helping the organization achieve the goal.

Five Relevant Statistics on Corporate Gifting

• 81% of people go through their email daily without discarding any
• 75% of people scan direct mail with the expectation of getting a gift
• 79% of consumers find reading more convenient instead of going online
• Companies that include direct mail are 27% more likely to deliver better sales performance and 40% more likely to give better acquisition levels
• Physical contacts generate the Endowment effect, and consequently, individual valuing

Criteria for Selection

The current pandemic has shifted the focus from important for corporate gifting. There is an upward trend in demand for stuff instead of experience. There is also a shift in essentials and value that create connection and a sense of comfort. Always have a partner who would assist you in selecting the items. A shared experience is a better way to bring the team together.

Strategies for Corporate Gifting

• Book a meeting with gifting tangible materials to leave a deeper footprint on the recipient
• Gifting to retain customers, an increase of 5 % in retention could boost profit by 25.95%; retention methods may include giving a discount after a subscription renewal, a made-up reward, or email coagulation for one-year commemoration. The feeling of under-appreciated works against brand loyalty
• Connecting the gifts to the value you deliver or the message you convey. The theory of cognitive psychology says that people are 22 times more supposed to remember a thing; it comes wrapped in a Story. 83% of Americans respond positively to receiving a package.
• Automate your gifting to save resources and time. 54.1% of corporate gifts are purchased directly from suppliers. This leaves enough scope for automation. While saving time, automation optimizes the time of your employees so that they give optimum performance

Instances and Results of Corporate Gifting

Depending upon the nature of business and the strategies and approaches made for corporate gifting, here are some specific cases of gifting and result

1: Alleyoop used small corporate gifts such as eGift cards, branded socks, and fun. Their rate of phone connection was increased by 20% by sending a gift before a scheduled call. The meeting connection rate was increased by 20%. After that, they started direct mails on behalf of their customers. Some of their clients saw a 45% reply rate and a 25% conversion rate.

2: Alter F (a medical device company) sent corporate Tumbler gifts along with an Amazon gift card immediately after a completed sales call. To their utmost surprise, the marketing effort led to 34 new opportunities created with a pipeline value of over a million dollars. The ROI on the marketing campaign was 434%. This indicates that even small promotional corporate giveaways can create huge returns.

Conclusion!

Now that you know the importance of corporate gifting, take your decision now to grow your business to the next level.