Whether it’s a birthday gift, a holiday present, recognizing a milestone, or even a peace offering, who doesn’t love being on the receiving end of gift-giving?
Corporate gifting builds off that innate feel-good emotion that accompanies receiving a gift, especially a thoughtful one.
Business gifting – both internally and externally – is so impactful because it immediately creates an emotional connection between the recipient and the company. It shows that you’re willing to go the extra mile to express appreciation to your clients, prospects, and employees by creating a meaningful point of connection.
And it’s not a secret. Corporate gifting isn’t just a local or regional thing. It’s not important only for companies in urban areas vs. rural. It benefits remote and hybrid employees just as much as those working in person. And it isn’t dictated by any specific culture or industry. Everyone’s doing it!
According to a 2023 study by The Shared Secrets Lab(TSSL):
- In 2022, the US corporate gifts industry was valued at around $258 Billion USD
- A wider lens shows the global value at over $300
- TSSL’s research suggests it will continue growing at 7.9% CAGR (Compound Annual Growth Rate) through 2025
There are a myriad of factors that contribute to this projected growth. We’re currently seeing more and more companies embrace the era of employee care and the rise of culture as a service, both of which emphasize the importance of employee satisfaction.
Yet almost 80% of corporate gifts and merch are “file 13’d” and end up in landfills (for the non-mathletes out there, that’s $237 Billion USD per year straight into the trash).
With an employee-first mindset being more important than ever before, corporate gifting is a great way to strengthen your relationship with your employees. It also holds tremendous value externally with both prospects and existing clients alike.
Let’s dig a bit deeper into what exactly corporate gifting is, why it’s important, and how it can benefit your business.
What is corporate gifting?
Corporate gifting is the act of sending an employee, client, or potential client a gift in an effort to create or strengthen the connection between the recipient and the company or brand. Some examples of physical corporate gifts include tech gadgets, gift cards, some forms of company-branded swag, and custom care packages. Non-physical corporate gifts include digital gift cards or an experience in lieu of a tangible item.
Why corporate gifting is important
Corporate gifting is important internally for companies because it helps strengthen the emotional connection and relationship between the company and its employees by creating an experience (i.e. receiving a thoughtful gift). Taking the time to source and send a gift to your employees shows that they are valued and appreciated, which will result in higher employee engagement and workplace satisfaction.
It also helps foster pride amongst your employees and a sense of community, particularly if you send high-quality branded swag items. And please note that the emphasis on “high-quality” is not a typo. “Swag” covers a lot of products but it’s time to let go of the aluminum and plastic water bottles and decaled coffee mugs. Think bigger.
Corporate gifting is equally important externally because it helps build brand recognition and encourages loyalty in your clientele. Business gifts can incentivize new clients to begin working with your company, they can be the door to opening genuine dialogue, and they can help to establish a budding professional relationship.
For your existing clients, corporate gifting is a fantastic way to re-engage and strengthen those already-established business relationships. Whether a sales prospect or current client, corporate gifting shows the recipient that their business is important to your company and that you want to establish or continue building a meaningful working relationship.
Examples of Corporate Gifting
Corporate gifting for employees shouldn’t be a last-minute scramble, but rather an integral part of your employee care plan. Instead of assuming that all your employees feel recognized and appreciated by the same gifts, why not remove the guesswork and avoid wasting money on corporate gifts that fall flat by simply asking them? Turn it up a notch and dive into your employees’ RecognitionDNA to get a crystal clear picture of how to make the biggest impact on each individual with your corporate gifts. Try implementing an employee recognition program where top performers are rewarded throughout the year.
Why corporate gifting is important for employees: Corporate gifting shows employees that their contributions are valued and helps create an emotional connection between the employee and the company.
For Sales Prospects
Corporate gift-giving for sales prospects is a great way to raise brand awareness amongst potential clientele who may not be very familiar with your brand or company. A prospect may be choosing between multiple companies to do business with and the right gift received at the right time may be just what’s needed to motivate them.
Why corporate gifting is important for sales prospects: Corporate gifting to sales prospects shows that you value their potential business enough to send a thoughtful business gift and immediately creates a tangible connecting point between the prospect and your brand.
For Existing Clients
Gifting to existing clients – even small appreciation gifts – shows clients that their business is highly valued and increases the likelihood of clients’ continued business. Clients who feel an emotional or personal connection with a company or brand tend to invest more and can even become brand ambassadors who extend referrals to their family and friends.
Why corporate gifting is important for existing clients: Corporate gifting to existing clients helps re-engage and strengthen business relationships resulting in increased brand loyalty and client longevity.
For Conferences & Events
Whether you’re hosting an internal conference or attending an external larger event, corporate gifting is a great way to engage with either your employees or event attendees. Arm your employees with everything they need to attend a work conference like a wireless charger, leather-bound notebook, and even some healthy snacks (because we all know that snacks are life in an all-day conference). Long after the event, they’ll have a tangible piece of the experience to take with them (minus the snacks, of course). Or at a larger industry event, corporate gifts are a great mechanism to help your brand stand out amongst all the others.
Why corporate gifting is important for conferences & events: Corporate gifting for external conferences & events elevates your brand’s positioning and awareness, while gifting at internal conferences & events helps create a united and memorable experience for your employees.
For Holidays & Celebrations
The most traditional time to think about corporate gifting is, of course, the holiday season and that’s for good reason. The holidays are a special time to connect with employees and clients through holiday gift-giving. Don’t forget to celebrate employee milestones or client successes throughout the year as well!
Why corporate gifting is important for holidays and celebrations: Corporate gifting for the holidays or celebrations is an important way to show employees and clients alike that they are top-of-mind during these special moments and want to share in their successes and happy times.
Benefits of Corporate Gifting
1) Strengthens existing relationships
The greatest benefit of corporate gifting is that it helps strengthen relationships both internally and externally. Business gifting makes employees and clients feel valued and that their relationship with the company is not only a priority but critical to the company’s success.
2) Nurtures new relationships
Corporate gifting helps to establish and nurture new business relationships with prospective clients. A cold call just doesn’t cut it anymore. Clients, especially new or prospective ones, expect personalized experiences from brands. Corporate gifting helps satiate that expectation and functions as a foundation for a flourishing business relationship.
3) Builds brand awareness & loyalty
With so many brands and companies fighting for consumer attention, it’s easy to get lost in the shuffle. Corporate gifting helps your brand stand out and raises company brand awareness. It also fosters a sense of loyalty resulting in longer client relationships and long-term employee engagements.
4) Increases productivity & retention
If an employee is being recognized and rewarded for their contributions, they’re much more likely to avoid employee burnout and look elsewhere for employment, resulting in higher levels of employee retention.
5) Bolsters happiness
Last, but certainly not least, corporate gifting makes clients and employees happy. While this may seem like an oversimplification or obvious benefit, the happiness levels of employees & clients are extremely important to overall company success and the bottom line. Happy employees work harder, stay at companies longer, and have high job satisfaction. Happy clients result in increased revenue and long-term growth potential.
Types of Corporate Gifts
➢ Corporate Gift Boxes
Corporate gift boxes are not only fun to open, but they’re a fantastic way to make a personal connection with the gift recipient. With the rise in remote work, we’ve seen a concurrent rise in corporate gifting companies that specialize in creating custom gift boxes for both employees and clients. For example, if your team is a bit stressed or morale is dipping, a thoughtful mediation gift box may be just what they need!
➢ Care Packages
Employee care packages are a great way to fuel employee engagement and show that you care about your employees’ overall well-being. By understanding their RecognitionDNA, you can send care packages that reflect their interests and values for the most intentional impact. Corporate care packages are a great way to launch business relationships with sales prospects and re-engage and reinforce relations with existing clients.
➢ Giveaway small items
Gifts don’t always have to be elaborate– small items can also go a long way in creating a cheerful moment. It can be as simple as ending a meeting by raffling off a $10 gift card or sending a bottle of wine to the top performer or client that month.
Swag is one of the most popular types of corporate gifts, both for employees and clients or prospects alike. But let’s be honest… the company-branded trinkets and tchotchkes aren’t cutting it in the swag arena anymore. Try stepping up your swag game a bit and think creatively about offering high-quality items that best represent your brand.
People Also Ask These Questions About Why Corporate Gifting Is Important
Q: How do I choose the right corporate gift for clients?
- You choose the right corporate gift for clients by determining your budget, doing your research, and quality-checking the gift options. We recommend partnering with a corporate gifting partner and utilizing their expertise! Learn more…
Q: How much do corporate gifts normally cost?
- Corporate gifts typically cost between $75 – $100 per gift. However, depending on the situation, that cost can fluctuate. Many companies offer a bulk order discount, so plan ahead and shop around when selecting the perfect corporate gift options.
Q: Are there services out there you can use to send corporate gifts to employees?
- There are some amazing corporate gifting companies currently in the market. Caroo offers some fantastic gift options for any budget, as well as a membership program to track and automate all your corporate gifting (and get free shipping). You’re already here… check it out!
Want to learn more about Caroo?
Our platform uncovers deep behavioral understanding of individual employee recognition needs, provides insight on when to recognize and makes it easy to send rewards employees actually want. All in one place.