A recent study by our industries international body, PPAI (Promotional Products Association International) found that business to business gift giving is on the rise globally. This finding prompted further research into the buying habits surrounding corporate gift giving and the reasoning behind it.
Who gives corporate gifts?
Going back a couple of decades, less than 50% of all businesses chose to participate in corporate gift giving. Flash forward to present day, and that figure has increased to an overwhelming 84%. It seems that this practice is becoming more and more the ‘norm’, and many see it now as common courtesy.
One thing to note regarding this trend is who the ‘givers’ are. The tendency to give gifts is greatly influenced by the company’s size and industry. For instance, government and education based businesses are far less likely to spend heavily on corporate gifts but private businesses and corporations often do.
What is a corporate gift?
A corporate gift is a logoed gift for personal use given to employees, clients, and business partners, which promotes good will and strengthens relationships. This is the commonly accepted definition by both givers and receivers. To define a corporate gift monetarily, the study found that most respondents believe that such gifts should cost between $25 and $50. This was found to be the amount that showed appreciation but was not excessive.
When is it appropriate?
Logically the number one time of the year that business gifts are exchanged is at the end of the calendar year at Christmas. However, many businesses choose to take advantage of the relationship building power of gifting year round, using secondary holiday events, significant occasions and business milestones to give gifts.
Why do we do it?
Other than building and strengthening business relationships, there were a couple of other main reasons that businesses noted as to why gifts were given. The next highest rating response was ‘to thank customers’ and the third was to ‘generate future business and referrals. Interestingly, ‘damage control’ was also noted on this list.
So, is there value in gift giving?
Apparently so. 78% of respondents felt that giving business gifts was at least ‘somewhat effective’ in achieving their promotional goals. When we examine the participants that actually measured the results of their promotional gift efforts, that number takes a drastic jump up to 91%!
There’s also conjecture around whether or not you include your logo and, if so, how prominent should it be on a personal gift you give for business. As the giver, you want to remind the recipient of your business at every opportunity but, there’s also a case for focussing solely on the usefulness and significance of the gift to create a lasting impression.
We’re here to help you choose the best branded gift for the recipient, relationship and occasion.