Why Corporate Gifting Is A Strategy For Good Business and Progressive Public Relations

Gift giving in business often produces the perception of personal connectivity and familiarity between the beneficiary and a brand or organization that offers the item.

Most notably, several banks, which are over one-hundred years old, gave children piggy banks as a reward for opening an account with the bank. Some of those piggy banks you now see in estate sales and auction shows. That only demonstrates how important they were to the original owners to have survived all this time.

Undeniably, the mold was set long ago, and companies have since depended on gifting to motivate employees, ramp up sales, cultivate loyalty in customers, build their brand, expand their market base, as well as achieve other marketing objectives they hold important.

So, exactly why do companies feel the need to give out customized gifts to their customers and clients? Further, is corporate gifting truly beneficial to the business' bottom line?

What Is Corporate Gifting?

Essentially, corporate gifting is a marketing practice that, when implemented well, could lead to a motivated workforce, improved brand-customer association, and increased ROI, among other benefits.

Pens, notepads, candy treats, and small trinkets are not the only ways businesses pamper customers.

Depending on the purpose of the gift, the items can be quite expensive and luxurious. In fact, luxury corporate gifting is on the rise, particularly with companies that have executive management programs, and other businesses where high-ticket sales are the norm.

Gifting secures relationships between a company and its clients, helps retain disgruntled customers, and makes everyone including employees, customers, and suppliers feel a part of the company's success.

Exponentially, it ramps up the company ROI, just by saying “we appreciate you”.


If your company would like to take advantage of our personalized corporate gifts, please check out our program.
Whether you want to reward employees, need something to hand out at a community event, or you have excellent clients that you want to say thank-you to, we can help.


Why Are Corporate Gifting Solutions A Necessity When Doing Business?

Much has been written about the Endowment Effect. Basically, it states that once someone owns something, their perceived value of the item is much higher than that of someone that never owned it.

In other words, the item creates personal feelings and attachment which elevate its status.

Going back to the bank and piggy bank example, the children cherished the banks because someone thought enough of them to give them something of value for free.

Later in life, they assumed the banks were worth keeping because they should be worth a lot more than when they received them.

This point clearly demonstrates the importance of a gift from an organization, and the effect it has on the recipient's thought process.

Additionally, the gift generates a feeling of trust in a particular firm. The individuals actually are more loyal to an organization because they remember the gift.

Therefore, it is these specific factors businesses capitalize on to increase productivity, market share, and ultimately, sales.

Moreover, recent studies have shown that when a company invests in personalized marketing, that a high percentage of consumers are likely to engage in a financial transaction with them because of the personalized experience.

Furthermore, offering gifts is not only a short-term marketing strategy for the business. It also instills a lifetime value in a customer’s emotional connection to the brand.

All of these examples demonstate that once an individual feels some connection, and ultimately loyalty to a brand, they will engage with that company, whether they had previous dealings or not.

Reasons A Company Should Use Corporate Gifting As A Marketing Strategy

Why Gifting Is Important

The significance of gifting to companies cannot be overlooked. Corporate gifting is an ingenious marketing tool that, when adopted, can help motivate employees, and build a lasting business relationship with clients and customers.


The gifts in question can be inexpensive or items like luxurious leather goods, depending on the purpose of the gift. Anything from gift cards, laptop bags, personalized leather keychains are warmly received.


Company gifting helps to increase engagements and cultivate long-standing relationships with clients.


Therefore, here are reasons why corporate gift-giving is important.


  • Helps Your Business to Stand Out from The Competition

    A custom-made gift sent at the correct time to a client or a loyal customer goes a long way in ensuring they enjoy using them; hence, boosting the likelihood of returning for repeat business. This strategy is effective especially for employees if you want them motivated to move your numbers even higher to beat your competitors.


  • Expressing Appreciation and Gratitude

    It is important to express some reciprocity measures to your clients and customers. They provide you a market for your goods and services., and give you profits. Therefore, it is necessary to appreciate this with a grand gesture of offering gifts to them. Your clients and customers will look forward to receiving occasional gifts from you, a reason for them to come back again for business.


  • Increased Sales

    Gifting directly impacts a company's sales and, hence, its revenue. Together with the employees, clients would feel heard and part of the company's success. They become inclined to play their roles even harder to increase performance and grow the business further. On the other hand, customers would recognize how the business values them and appreciate the benefits of maintaining a relationship with the company. If they feel that they are getting greater deals in their spending with your business, they will give repeat business.


  • Creates Brand Awareness

    A company’s brand is its credibility. It can take lots of years of hard work and strategy to build, which involves establishing a strong relationship between your company and its customers and clients. Sending out gifts to clients goes a long way in ensuring the consummation of this relationship as it boosts trust and reciprocity. This will, over time, be significantly beneficial for the business.


  • Reduces The Cost of Advertising

    The advertising budget in an organization is always substantial. If they coughed up fewer funds to cover this cost, it would create a reprieve for company shareholders. One of the ways to do that is by offering gifts to clients and customers.

    A company can purchase in bulk all the giftware they need to send out and have them branded at wholesale prices to save on cost. The merchandise is packaged in customized wrappers and cartons and then sent to its intended destinations. As the recipient uses these gifts in public, like umbrellas or T-shirts, they promote your brand.


What Is the Future of Gift-Giving for Companies?

The use of gifts in the corporate world to ramp up sales and brand strength will continue to be at the heart of company marketing strategies for a long time. In return, the practice will continue delivering increased ROI and improved brand image and perception to consumers.

The future of gifting is in consolidating these campaigns into single brand programs to build awareness around them and the company. Although now on a lower scale, the future of gifting in other company departments like customer care is only poised to increase exponentially with time.

It would stop being a marketing department affair and end up in all company departments, including HR. Automation will surely result in gifting where improved selection and customization of gifts would make the entire enterprise more sustainable.


As pointed out above, corporate gifting is an ingenious tool that every business can integrate into their marketing strategies.

The objective is to build a lasting relationship with customers and clients such that their trust in your brand helps to sustain the company's need for a market.

A sustained supply chain helps the business make sales, bringing in revenue.

Company Swag

You Might Also Like To Read ...

Older Post Newer Post