Don’t worry! There’s still time to buy Christmas gifts for your valued clients and reap the many benefits it offers. Don’t just take our word for it, research has shown time and time again that recognising your customers with gifts has a big impact on things like purchase consideration, loyalty, and retention.
To prove it, check out these 7 compelling stats around the importance of giving client gifts (especially at the crucial end-of-year period)…
Research conducted by Corsight among 300 corporate gift buyers found that they overwhelmingly believed that giving gifts to clients had resulted in stronger relationships. A further 48% went as far as to say that gifting delivered a “substantial benefit”. These benefits included improved customer loyalty (43%) and making the recipient feel valued (45%).
A small gift at the start of negotiations can generate 2x as much revenue
Researchers from the University of Zurich wanted to know if small gifts lubricated business negotiations. They asked sales representatives from a pharmaceutical company to give out tubes of toothpaste as a gift to buyers at some of the pharmacies they hoped to sell to.
The results were conclusive: the sales reps generated, on average, more than twice as much revenue when they handed over the toothpaste at the beginning of their sales negotiation. But when the sales negotiations were with store managers, client gifts increased sales revenue by more than 300%.
Client gifts are incredibly effective at creating a connection between the gifting company and the recipient. A survey of 1,254 people who had received a corporate gift in the last 18 months, found that they overwhelmingly felt closer to the brand that had given them a gift.
What’s more, 35% of people report increased openness to a company reaching out to them after receiving a gift. And a further 30% say they have an increased desire to connect with the gifting company.
The importance of creating a connection can’t be undervalued - research shows one small client gift could have an impressive ripple effect. Motista collected data from more than 100,000 customers of more than 100 retailers across multiple sectors. The data showed that customers who feel an emotional connection to a brand are far more valuable to retailers, in some cases spending twice as much as customers who rate themselves as “satisfied” with the brand.
Over the lifetime of their relationship with a brand this increased spending can add up to a 306% higher lifetime value (LTV). Emotionally connected customers also stay with a brand for much longer, an average of 5.1 years versus 3.4 years. And they will recommend brands at a much higher rate too (71% versus 45%).
If gifting helps customers to feel more connected to your brand and therefore increases their loyalty, it can mean only good things for your customer retention rate. And making even small gains here can have a huge impact on your bottom line. Bain & Company found that in industry after industry, increasing customer retention rates by just 5% increases profits by between 25% to 95%.
Bain also found that repeat customers spend 67% more money than first-time customers, which means you really should be doing all you can to keep them.
Even if a prospect isn’t ready to do business at the time of receiving a gift, the impact of gifting can be long lasting, often resulting in a future payoff. According to the British Promotional Merchandise Association, after receiving a promotional gift, 66% of people can recall a brand name a year later.
And by improving your brand recall rate, it makes prospective customers more likely to think of your company when they’re looking for a new supplier.
Giving gifts to your existing clients doesn’t just help to maintain their custom, it can also help to bring in new customers. That’s because strengthened relationships make them more likely to recommend you to others. According to companies surveyed by Big Frog, more than a quarter of organisations believe referrals have come as a direct result of their corporate gifting strategy.
After reading those stats we’re sure you’re convinced about the power of giving client gifts this Christmas. And if you’re now ready to buy, here’s one more stat to bear in mind: uniquely chosen gifts are 2.3x more effective at creating sales opportunities (source: Business 2 Community).
This means that, rather than giving a generic gift to all clients, you should send unique handpicked gifts to every decision maker that you want to engage. And while 1-to-1 gifting campaigns require more research and orchestration, Huggg can help lighten the load.
Thanks to our Gifts with Choice range, you can give clients exactly what they want, and ensure it creates a positive association with your brand. As the name suggests, Gifts with Choice allow your clients to choose from a selection of gifts within a certain price bracket - and then have the gift mailed to their workplace or home.
All you have to do is write them a personalised note to let them know how much their business means to you… and wait for those renewals to come rolling in!
Ready to renew your client contracts? Send client gifts today!