To Gift or Not to Gift … That is the Question.

When it comes to showing customer appreciation, businesses around the country are faced with a similar question — to gift or not to gift? And if “gift,” who-what-where-when-why?

Whatever the answer may be, gift giving can be a tricky situation. The bottom line, however, is that business owners want to know what their return on investment will be. After all, it does take time and money to thank customers.

If given correctly, holiday gifts can be a strong marketing tool. Apart from thanking a person and/or company for their business throughout the year, a gift can also ensure that you remain top of mind and make your company’s name a front runner.

So, if you have decided that gift giving is right for your company, where do you begin? You can start off by simultaneously making a holiday spending budget and recipient list. Recipients would include clients, vendors, suppliers, media contacts, etc. When deciding who makes the cut, you can take into account factors such as revenue generated and buzz potential. It’s not exactly a scientific process – in most cases, it’s determined by what feels right. If you’re stuck, try to simply list your best customers and businesses that are worth thanking because they have done something for you during 2012.

For some companies, choosing gifts proves to be a more difficult task than deciding on a budget. In this case, perhaps it would be effective to hold a contest where your employees suggest unique gift ideas. This also doubles as a great way to build employee morale! Personally, I know that my in-it-to-win-it nature is a sucker for some healthy workplace competition 🙂

Gifts should be a means to show off your organization in addition to saying thanks. Giving a unique gift shows a customer that you are familiar with what they do or whom they care about, and this kind of gift is more likely to get you imprinted in their minds! If your gifts could talk to your clients, they should say, “I know you so well, that I could tell you what you had for breakfast this morning!” Connecting to your customers on a personal level is key, which is why sending group gifts is often remiss. These gifts could come off as anonymous and end up sitting in a conference room. Need a personalized gift that’s simple? Consider what you use in your office everyday, such as your coffee mug or your favorite pen. If you use and enjoy these products everyday, so do others – so slap on your company’s logo and voila!

Giving customers a gift that they can experience while having a good time can help create an emotional connection linked to a good mental image of your company. For example, you could send a bottle of wine with your logo printed on the label in fancy letters.

Charitable donations can be tricky if handled incorrectly, as the causes you support may not align with your customers’ beliefs. Instead, give them a call and say you’re not making a sales call; you’re calling to find out more about their favorite local charity. Keeping it local also shows you care about their community.

Knowing when to send a gift is also important. In many industries between Christmas and New Year’s, no one is around. Gifts should be sent immediately after Thanksgiving, and if you are cutting it close, you should wait to send them until after the holiday season.

Also, something to consider concerning taxes … please note that we are NOT giving tax advice, BUT the IRS does allow your business to deduct up to $25 for business gifts you give to any one person per year. Check out this article that answers additional questions on business gift-giving deductions.

What gifts might your company send this holiday season? Let us know by leaving a comment below!