Corporate gift giving is a time honored marketing practice that increase both client and employee loyalty if handled correctly. And that is a big ‘if.’ Everyone loves receiving gifts because it makes people feel appreciated but there is a fine line in what makes a gift appropriate and falling off of it could do more harm than good to your company’s image. A bad gift to your clients might make them turn against your company while a bad employee gift can become the butt of jokes in the office for a very long time. To answer the question, “are corporate gifts appropriate,” the answer is, “there are appropriate gifts for appropriate situations.” Here are a few pointers in how to give the most appropriate gifts to your employees and valued clients.
ETHICAL
There are some companies (especially in financial services, insurance, medical, and retail) that discourage or outright bar all kinds of gifts. It is also a common policy to have a price ceiling on gifts being given. When you have clients and partners that fall under these, it is better to ask first than be embarrassed later. If they decline, sending a letter of appreciation will do. On the other hand, if your company is truly altruistic, give the allotted gift budget to charitable institutions instead and write to your clients about it. You might think of this practice as arrogant and self-conceited but in reality, it’s quite the opposite. It shows that rather than spending your budget on lavish gifts and other bonuses, you’d rather give it to those who are truly in need, consequently gaining the trust and respect of your clients.
PERSONALIZED
Research is key when giving gifts to your clients and employees. Gifts should be proportional to the size of their support and the size of your company. Will your clients enjoy a season pass for their favorite football teams knowing you only have a small company? Will a large investor appreciate cheap bottle of wine? Not only will it result in a check written to your competitors, but it might also get you a slap to the face. Being realistic on the value of your gifts is important in giving corporate gifts. Of course you want to give your valued clients only the best gifts but if you have a small or medium company, it is best if you scale down too on your presents. It will also raise suspicion if you suddenly start handing out extravagant gifts and make them think twice on associating with clearly a spendthrift company.
As for your employees, research and variety are highly encouraged. Will your diabetic director appreciate a basket of candies? Will your best employee who had a preceding struggle with alcohol enjoy a bottle of wine? Getting corporate gifts for your employees is a bit trickier since one wrong move can cost you years of loyalty and great effort from their end. You might think that handing out cash is the best in this case but in reality, not only might it be illegal, it is the worst possible gift one can think of since it’s unoriginal and lazy. On the other hand, a gift check is way better since you’re giving them the freedom of choice in how they will spend it.
Pens, mugs, and other promotional materials with your company’s logo are also appreciated but only to a degree. Every once in a while, giving them these might boost their morale since these are practical items that will help them in their work. But giving them these as major gifts and bonuses will make them question if you really appreciate them. These are promotional materials which are regularly given at seminars, fairs, and conventions so giving them regularly to your employees defeats their purpose.
Corporate gift giving is one of the oldest marketing techniques. In order for your company to maintain and boost employee and client loyalty is to give appropriate gifts that truly show your appreciation for their support and hard work.
ETHICAL
There are some companies (especially in financial services, insurance, medical, and retail) that discourage or outright bar all kinds of gifts. It is also a common policy to have a price ceiling on gifts being given. When you have clients and partners that fall under these, it is better to ask first than be embarrassed later. If they decline, sending a letter of appreciation will do. On the other hand, if your company is truly altruistic, give the allotted gift budget to charitable institutions instead and write to your clients about it. You might think of this practice as arrogant and self-conceited but in reality, it’s quite the opposite. It shows that rather than spending your budget on lavish gifts and other bonuses, you’d rather give it to those who are truly in need, consequently gaining the trust and respect of your clients.
PERSONALIZED
Research is key when giving gifts to your clients and employees. Gifts should be proportional to the size of their support and the size of your company. Will your clients enjoy a season pass for their favorite football teams knowing you only have a small company? Will a large investor appreciate cheap bottle of wine? Not only will it result in a check written to your competitors, but it might also get you a slap to the face. Being realistic on the value of your gifts is important in giving corporate gifts. Of course you want to give your valued clients only the best gifts but if you have a small or medium company, it is best if you scale down too on your presents. It will also raise suspicion if you suddenly start handing out extravagant gifts and make them think twice on associating with clearly a spendthrift company.
As for your employees, research and variety are highly encouraged. Will your diabetic director appreciate a basket of candies? Will your best employee who had a preceding struggle with alcohol enjoy a bottle of wine? Getting corporate gifts for your employees is a bit trickier since one wrong move can cost you years of loyalty and great effort from their end. You might think that handing out cash is the best in this case but in reality, not only might it be illegal, it is the worst possible gift one can think of since it’s unoriginal and lazy. On the other hand, a gift check is way better since you’re giving them the freedom of choice in how they will spend it.
Pens, mugs, and other promotional materials with your company’s logo are also appreciated but only to a degree. Every once in a while, giving them these might boost their morale since these are practical items that will help them in their work. But giving them these as major gifts and bonuses will make them question if you really appreciate them. These are promotional materials which are regularly given at seminars, fairs, and conventions so giving them regularly to your employees defeats their purpose.
Corporate gift giving is one of the oldest marketing techniques. In order for your company to maintain and boost employee and client loyalty is to give appropriate gifts that truly show your appreciation for their support and hard work.