It’s True, Gifting Is Good for Business
Logically, you know that gifting plays a valuable role in your business relationships. And there’s no shortage of data that demonstrates what companies intend to give or spend on business gifting annually.
But where is the data that captures how the recipients of business gifts feel about what they receive? And how does a gift impact their behavior toward the business giving the gifts?
With no such data readily available, we went after it on our own. We engaged a third-party research firm to conduct our inaugural Knack Business Gift Satisfaction Survey. We surveyed 500 people across the U.S. who work full-time and had received a gift from a business partner in the past year–and the results were illuminating.
Good news for everyone sending business and year-end gifts this season: you can maximize the ROI of your corporate gift-giving strategy by paying attention to a few key insights.
What We Learned From Our Survey
At the highest level, we learned this about business gifting:
- How gifting can support business growth
- What to give to make a gift more memorable
- How much to spend on your holiday business gifts, per person
- How these statistics vary across regions of the U.S.
To learn more and apply these findings to your corporate gifting plans, download the full 2019 Knack Business Gift Satisfaction Report here.
We also summarized a few important survey insights for you below.
Survey Key Takeaways: 7 Ways To Be Better At Business Gifting
Giving Works as a Brand Touchpoint.
We learned that 81% of recipients felt appreciated by the gift giver. Since appreciation drives connection, and connection drives loyalty, that’s a strong endorsement for using your gifting strategy as a brand touchpoint. As such, make sure you use the opportunity to select products that reinforce your brand’s values. For instance, you can select gifts from merchants that embrace a give-back mission or use sustainably sourced products that align with your brand, or your recipient’s.
Memorability Matters and Increases Retention
Fewer than half of all business gift recipients say that their last gift was “Very Memorable,” yet this is the difference between satisfying gifts and gifts that generate measurable return on investment. Here’s why memorability matters: gift recipients who describe their gifts from business partners as “very memorable” are:
It’s Not Always About the Money
Under the vast majority of circumstances, recipients of business gifts from vendors or business partners don’t expect to receive gifts that cost over $150. Although there are interesting differences between demographic groups and regions of the US, this basic formula can be used as a general-purpose guideline for those seeking a “one-size-fits-most” approach.
Gift Cards Continue to Be a Safe Strategy
We learned that gift cards continue to be a safe choice for almost everyone, but they no longer generate the memorability that strengthens personal connections. While 71% of those who received gift cards report being “very satisfied” with their gift, only 53% described the gift as “very memorable.” Personalize your corporate gifts with a more meaningful option such as an entertaining gift or a spa gift.
Millennials Preferences Should Be Considered
Millennials now comprise the largest demographic group in the US workforce. They not only represent a large swath of current potential business gift recipients; their preferences and habits will also determine future business gifting etiquette. We learned tailoring the business gift to the individual will pay especially significant dividends when gifting to millennials. This is due to a combination of their increased preference for personalization and their eagerness to feel connected to their partners.
Follow the 30 Second Fail-Safe Business Gifting Checklist
In a hurry? You can’t go wrong by following this simple formula:
- Give a useful item
- Surround the useful item with shareable gourmet food
- Give items that are made in the US
- Spend between $50-$150 depending on seniority
- Write a personally-addressed note
Most People Need Help with Gifting–and That’s Okay.
If you feel overwhelmed by gifting, you’re not alone. A surprising amount of respondents say that they would like to give more personalized gifts but it’s difficult to do so. We’re here to help. We offer a free personal concierge service to help companies like yours create a gifting plan that will accomplish your goals and meet your budget. No strings attached, so let us know how we can help.
In conclusion, unique business gifting done well can positively impact both your brand’s perception and bottom line. It’s a worthy investment of your time that has a noticeable effect on your business relationships–and, armed with our survey insights, you’ll find it easier than ever before.