Many people often ask: What are the benefits of giving business gifts? Why should my company give gifts? How do I know if the gifts are yielding a return? We sat down to share our thoughts as a team that has both years of experience in the corporate world and in the gifting design industry.
When and How Corporate Gifts Improve Your Bottom Line
Gifting is an important part of business strategy because it can build new connections and strengthen relationships via tangible, shared experiences. This said, corporate gifting is not an easy thing to get right. Because of this, we often hear the question: Is it worth it? Should my business invest in giving gifts this year?
Based on the data and what we’ve seen from years in the industry, the answer is overwhelmingly yes. Let’s chat about the purpose and benefits of business gifting.
What is the purpose of gifts in business?
No matter who you’re giving them to, business gifts serve three purposes – they build relationships, create shared, memorable experiences, and give your brand an opportunity to live out your values in a tangible way.
1. Business gifts build relationships.
Giving a gift in a professional setting is an opportunity to show the recipient that you see them as a person, and recognize and celebrate what makes them special. Remember that story they shared about their favorite hike? Gifting gives you a chance to re-connect over that personal moment by giving a curated gift box with hiking themed treats and keepsakes. Thoughtful gifts are known to increase employee morale and engagement and client loyalty and retention. Business is all about relationships, after all.
2. Gifts in business create a shared, memorable experience.
In an increasingly digital world, giving a physical gift can create a moment of surprise and delight and add a new layer to a virtual relationship. If you’re doing it right, the experience of unboxing this gift will leave a lasting impression on your recipient and keep your brand top of mind. Moreover, if your team is selective and intentional in choosing the gift box contents, the recipient will keep and use their new keepsakes and likely think of you when they do. We also recommend giving thoughtfully-branded corporate gifts, so there is a tasteful reminder of your unique brand during the gifting moment.
3. Business gifts give your brand an opportunity to live out your values.
Customers are increasingly looking for businesses to walk the walk, and corporate gifting presents an authentic moment for a business to act on their mission in an impactful way. Whether your business values growing sustainability, celebrating diversity and inclusion, or supporting local businesses, you can give a business gift box that furthers that mission.
Why are business gift boxes a good investment?
Business gift boxes are a good investment because they improve employee engagement, increase client retention, and give your business a chance to have a positive impact in your community.
In other words, giving a business gift box allows you to increase the bottom line through a net positive, proactive action. As business owners ourselves, we know there are many ways to increase the bottom line and most of them involve cutting this budget or that expense. There are few ways to increase the bottom line that involve a shared, genuine moment of joy and delight. Let’s get into the details – how exactly does corporate gift investment increase the bottom line?
Corporate Gift Boxes Improve Employee Engagement...
which increases team productivity and decreases churn. Not only does increasing employee engagement make for a more enjoyable company culture, it has a material impact on your people-related costs. The right gifting strategy can lift morale, and make your company a more attractive place to work for everyone – decreasing recruitment and retention costs. We've linked another resource that shows how gifts to employees make a difference in performance here.
Business Gifts Increase Client Loyalty and Retention...
which leads to stronger referrals and can also lead to a larger share of wallet from current customers. Many studies illustrate that showing your current customers that you appreciate them and their business not only can increase the top line, it also can decrease churn which lowers future acquisition costs.
Corporate Gift Boxes Are an Opportunity to Showcase What You Care About...
which can increase trust and affinity from all kinds of stakeholders. In a world where consumers and partners have increasingly high expectations for a company’s DEI and ESG efforts, business gifting offers a unique opportunity to act on your brand’s mission through a direct and tangible touchpoint. Oh, and if done right, this gifting touchpoint can actually have a positive material impact on our planet and your local community.
Who should my business give corporate gifts to?
Businesses have historically given gifts to all kinds of stakeholders, including employees, clients / customers, partners, and prospects. Especially when budgets are limited, crafting the optimal gifting strategy can be challenging, but here are some considerations you should take into account when deciding who to give business gift boxes to:
1. Bulk Gifts for Employees:
This is one group that we advocate should be given priority at all companies. Especially in the “Age of the Great Resignation”, gifting is an opportunity to show your team recognition and increase retention. The *right* gift (ie, a meaningful, personal, and thoughtful gesture) can turn into a key touchpoint that shows you value their contribution and efforts, and you have taken the time and allocated a budget to show appreciation for that. Key moments for employee gifting include Employee Welcome Gifts, Employee Anniversary Gifts, and Key Seasonal Corporate Gifting Moments.
2. Bulk Gifts for Clients:
When deciding whether to give a gift to your client, the key question to ask yourself is:
“Am I in a relationship-based business?”
While we don’t know the specifics of your company, we are guessing that this answer is yes. If your company benefits from upsells, an increased CLV, and client referrals, gifting is something you should heavily consider as a fundamental part of your strategy. Is your client relationship low touch? Send a gift to remind your customer you’re thinking of them. Is your client relationship high touch? Send a gift to show your customer how much you appreciate working closely with them.
3. Business Gifts for Prospects:
This is a sensitive group, because the gift shouldn’t be seen as an act of desperation, or even worse, a bribing tactic. When deciding whether to give a business gift to a prospect, we recommend you consider your brand positioning and how that compares to your prospect’s values. If there is overlap there, and the gift can be designed to showcase interest in a genuine partnership, we 100% recommend giving a business gift box to your prospect – especially if you have a gifting consultant at your disposal to help navigate these sensitive waters.
Why Business Gift Boxes, as opposed to another type of Business Gift?
1 ) T H E E X P E R I E N C E
Unlike a gift card or a bottle of wine, giving a business gift box allows your to give your person a special and enjoyable unboxing experience. Layers of luxury packaging show your employee or client how much thought went into this gift, and the handwritten note adds a personal touch.
2 ) T H E T H O U G H T F U L S T O R Y
More than the special unboxing moment, a business gift box allows you to curate a series of products that fit your brand and your theme. If the gift box is done right, the products are combined in a unique way and they tell a story that can be easily understood and appreciated by your recipient. To increase the impact of the gift, we recommend sourcing these products from makers that fit your business ethos so you can not only delight your recipient, but you can show them what you care about.
3 ) T H E L A S T I N G I M P A C T
More than a gift card or a generic bottle of wine, a business gift box allows you to give a high-quality gift that stands out. When the gift box and packaging is intentionally designed, it is a personal and memorable gift that increases brand affinity even in the busiest time of the year.
Should my business invest in Business Gift Boxes?
Yes! In conclusion, a business gift box is a great opportunity to show your team, clients, and partners that you care about them, our planet, and your community. Corporate gifting is not easy, but when done right, it can increase revenue and decrease costs by building relationships in a genuine and joyful way.
Looking for help developing your corporate gifting strategy? You can chat with a member of our team here, or you can shop our curated business gift box collection here.