Updated: Oct 7, 2020
The origins of gifts date back to the start of civilization and the ritual is one of the oldest practiced traditions. Gift-giving is a way to invest in a relationship.
Giving and receiving gifts can be a powerful emotion and is a social lubricant in enhancing social ties.
Corporate gift-giving is the process of providing a memorable presentation to its employees, clients, and prospects. It can often be a physical item, an edible treat, personalized accessories, or even an experience.
Receiving gifts is empowering. It lays the foundation for building connections creating associations with the brand or person.
Although not shown explicitly, corporate gifting has been one strategy that marketers have relied on to secure better relationships with their stakeholders.
Business gift recipients end up with a high level of mental satisfaction from what they receive if gifted correctly. But gifting has much more to do than just satisfaction.
Corporate gift-givers aim at making the gift a memorable experience.
The practice of corporate gift-giving, essentially the non-cash business gifts, is estimated to be valued at $125 billion according to Forbes, providing enough proof of the importance of the process in modern-day business.
What goes behind corporate gift giving?
Think of the time when your business got an unexpected gift via mail or delivered in person. Most of the businesses remember at least one such occasion where we received something of this nature.
There is plenty of evidence to show that gifts of this sort positively exceed our expectations. As a customer, we feel appreciated and recognized.
Here, we feel a sense of ownership and value it high above the rest relating to the Endowment effect.
Businesses try to bring out this psychological feeling from the entire process of corporate gift giving.
Satisfaction and Memorability
Two aspects complete successful gift-giving; satisfaction and memorability.
In a recent study conducted, at least 50% of the corporate gift recipients do not recall their last gift. That is one of the many instances where corporate gift-giving becomes a failed enterprise.
Satisfaction is only the first part of the gifting equation. If the gift helps to fulfil their needs and wants, they are going to be satisfied.
For example, you gift a premium wallet to a recipient. He is going find it useful in day-to-day activities and gain satisfaction through this.
But that’s not what corporate gift-givers are looking. In the second part of the equation, the ‘memorability of the gift’ is what essentially fuels its success.
Around 1/3 of the business gift recipients across the US noted that their last gift was memorable. They also mentioned that they were satisfied with what they received.
Relationships are built on memorable gifts, generating a measurable return on investment.
So, how do you make a gift memorable?
Making a gift memorable comes down to it one aspect. A gift increases in its value when it becomes a gift selected just for the respective individual based on his preferences and beliefs.
Personalization is the way forward in making your gift memorable. Instapage’s marketing study emphasizes that 80% of individuals are more like to be doing business with a company that offers a custom-made experience to suit their likings.
Although gift cards are more often the customary choice in gift-giving, a gift card indicates that there has been no thought put into its entire process.
After all, corporate gift-giving is built entirely on the concept of building relationships, and a low-effort gift card, no matter how much it is, is a futile effort.
The right essence of personalized gifts need to be relatable to your field of business as well. While it needs to be memorable, its best to make subtle references to your business. The tiny yet intricate details that go into these custom gifts are sometimes the most important ones that the recipients pick up on.
That’s where the importance of a professional in the gift-giving industry comes in handy. To understand the right requirement and include an experience through the product that you offer.
While personalized gifts are a way to go, gift getters also find unique offerings to be another way to make a memorable gesture. A unique gift is an indication that the gift giver has gone the extent of finding something rare in value to signify the importance of the relationship that they want to build.
Why does memorability matter?
Leaving a great impression from a memorable gift is always useful. At least one-third of the recipients that receive gifts feel more connected to the giver and is eager to establish a long-term relationship.
For the majority of corporates, long-standing relationships have equal value its fixed assets.
Sending the right gift at the right time to the respective individual can align their interests with the business to take action. The gift can lead them to a purchase, a sign up, or even recommending the product to someone else.