There are over twenty-seven million businesses in the United States alone and during the fall, a majority of these companies will be purchasing corporate gifts for a number of people. Employees/agents/contractors, customers/clients, channel/distributor partners, lenders and even media contacts will start receiving corporate holiday gifts soon. There are four multiple returns businesses can measure of their corporate holiday gift program including: brand awareness, loyalty, and sales/performance.
Leah Ingram, as quoted in the New York Times article, The Tricky Etiquette of Business Gifts, acknowledges two reasons business gifts are purchased, “One is obviously to thank someone for their business for the year. The other is to make sure you remain top of mind, and to get your name in front.” When you give a gift from your company to someone, he or she will remember your company’s generosity every time it is used. Merchandise based gifts can keep you and your company in mind and this brand awareness is one positive return from giving corporate holiday gifts.
By taking the time to pick out corporate gifts or put together a holiday gift program that allows people to pick out the corporate gift of choice, you are reinforcing that person’s loyalty to the organization. Corporate gifts symbolize the recognition of a relationship and by giving a gift to someone, it reaffirms the relationship.
The Incentive Research Foundation has released some preliminary findings of corporate gift programs in the article, ROI Ahoy! Three Takes on Measuring Return On Investment, by Leo Jakobson. The author reports that those who participated in the corporate holiday gift program had a longer tenure that those who did not participate. Jakobson also states that The Incentive Research Foundation study found sales and performance increased as a result of the corporate gift program.
When brand awareness, loyalty, sales and performance are boosted by corporate gift programs, people are more likely to engage with your brand. Engaged employees and customers are more likely to provide referrals and contribute to a higher return to shareholders. On average, companies with engaged employees alone have thirteen percent higher return to shareholders than that do not have engaged employees.
As you begin to prepare your corporate holiday gift list this year, think about how the gifts that you select can impact your bottom line. It is important to be generous, fair and provide a reward that will be appreciated and used.
Although I will be blogging about return on investment research and ways to maximize the return of recognition and incentive programs, this is the last monthly post in our return on investment series.
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