When applied with care, the age-old business strategy of dispensing corporate gifts can be a powerful way to form, grow, and sustain customer relationships. Long before this practice was adopted for commercial purposes, it was common among ancient rulers, such as the pharaohs of Egypt, to make generous gifts to dignitaries in other countries to strengthen existing alliances or forge new ones.

On a more parochial level, the political elite of Ancient Rome often gave presents to win support from fellow senators, an arrangement that might be considered bribery today. However, it was only during the years leading up to the Renaissance and the growth of international trade that gifts to customers to gain their loyalty and encourage repeat business began to gain traction.

Today, gifting has become an integral part of the marketing strategies of all kinds of businesses across the globe. In addition, many companies now use corporate gifts to reward their employees’ performance and promote staff loyalty.

In practice, the growth of corporate gifting has led to the birth of a new industry dedicated to manufacturing and supplying a wide selection of suitable gifts, ranging from stationery and clothing to leisure goods and digital tech. Although the nature of the gift is significant, its strength stems from its distinctive corporate branding.

What Makes Corporate Gifts Effective?

The primary explanation for the success of these gifts lies in a principle that is deeply rooted in human behaviour. On a social level, this might take the form of an exchange of birthday or Christmas presents. Upon receipt of an unsolicited present, the average individual feels compelled to do something for the donor in return.

Unsurprisingly, when a prospective client is given a gift, perhaps by a sales representative, at a trade exhibition, this act tends to elicit a similar response. In this case, the return is the heightened prospect of new business. By the same principle, an identical gift given to an existing customer can significantly improve the prospect of further orders and positive referrals while helping to build long-term client loyalty.

In practice, corporate gifting is a classic example of a well-established psychological principle known as reciprocity, the subconscious urge to respond in kind to a positive action or favour. At the most basic level, it is a pressing need to reward someone for an act of kindness. However, corporate gifts also offer the donor benefits other than helping to build and maintain relationships:

• Enhanced Brand Image: A carefully chosen gift can be a means to highlight a company’s values and leave a lasting impression on the recipient. It can indicate attention to detail and genuine interest in the client’s needs. Feeling valued increases loyalty to the brand and the likelihood of positive word-of-mouth referrals.
• A Competitive Edge: Not all businesses appreciate the potential of corporate gifting, but those prepared to offer their prospects and clients unique, high-quality, or personalised gifts tend to stand out from the crowd and be remembered when choosing a supplier or service provider.
• A Productivity Boost: Internal gifting can be a great morale booster, especially when combined with visible acclaim to reward exceptional performance or personal achievement. Recognition increases job satisfaction and loyalty, ultimately improving productivity.
  
  

Optimising the Benefits of Corporate Gifts

One cannot overemphasise the importance of exercising care when selecting gifts. The following guidelines should prove helpful in ensuring they will achieve their intended purpose:

• Personalise Them: Tailoring a gift to a customer’s preferences demonstrates genuine interest and thoughtfulness, which serves to make the gesture more sincere and meaningful.
• Prioritise Quality: A small but high-quality gift will make a lasting positive impression. By contrast, although it may appear more striking, a cheap, generic item will likely have the reverse effect.
• Cultural Concerns: Be sure not to overlook the significance of cultural differences. A gift that might be welcomed in one culture could be considered entirely inappropriate by another.
• Sustainability: Where possible, choose items that have been manufactured using sustainable materials and procedures. These should be equally acceptable to the eco-warriors and less environmentally conscious recipients.
• Timing: Gifts given on special occasions like anniversaries or on the successful completion of a project will have more impact.
  
  

Purchasing Corporate Gifts

We at XCO Group are a South African leader in brand development, specialising in corporate clothing, sportswear, workwear, and branded corporate gifts. Contact us, and let’s work together to develop a corporate gifting strategy to uplift your brand and grow your sales.