Gifting builds loyalty, retains clients

Karan Sehdev

In an extraordinarily competitive market, organisations are exploring new ways to create better relationships and loyalty. One trend that has existed for some time now is corporate gifting, which is shifting from a seasonal event into a strategic tactic to appreciate employees and retain customers.

The premise is simple: Gift Relations. Build Loyalty. Companies across the variety have discovered that an appropriate gift goes a long way, as it not only develops trust but also builds engagement and leaves a significant impression.

You may be wondering, Why does gifting work?

In a recent research study conducted by a prominent customer insights firm, they found that over 75 per cent of the respondents felt more connected with a brand that had sent a personalised gift to them like festive box, a work anniversary gift, or a welcome kit but each moment of appreciation remains relevant.

A personalised gift is not advertising to your clients and employees; it is individualised. It provides meaning to clients and employees because it tells them both that they are being acknowledged and valued. The emotional connection created through gifting often enhances trust and loyalty, two important elements for any business that is growing.

For Your Clients Value Beyond Transactions

Customer loyalty does not take one day to develop. Customer loyalty is built slowly, through care and effort. Simple touches can go a long way. Thoughtful gifts sent on key milestones, like project completions, festivals, and anniversaries of partnership, will all help grow a lasting business relationship.

In a world that has many options, a client is more likely to continue working with a brand that respects and values their relationship beyond its transactional aspect.

For Your Employees: Boosting Engagement and Retention.

Corporate gifting plays a significant role outside of the organisation. Companies should initiate meaningful, remembered gifts when recognising employees in important moments in time and milestones, like festivals, performance reviews, and work anniversaries. Such appreciation can truly boost employee spirit and motivation.

HR departments across companies have observed that employees have positive feelings towards these gestures. It’s not just the actual item received, but more about the thought of giving the item. Over time, gifting consistently develops a culture of recognition and belonging.

Companies that focus on the appreciation of their employees often use gifting. They have found that they have lower attrition between 20 – 25 per cent when regularly gifting employees in comparison to companies not gift employees. From joining kits to yearly thank-you gifts, these opportunities help strengthen employee/member attachment to the workplace and feel appreciated.

How to Measure the ROI

Although it may be seen as invisible, companies are now putting actual ways to measure the metrics of their gifting programs.

Here are some possible measures:

1.Customer Retention Rate before and after gifting initiatives.

2.Volume of Repeat Purchases associated with gifting campaigns.

3.Employee Turnover compared to respective Recognition programs.

4.Feedback from Recipients using surveys and /or follow-up messages.

Insights from Merch Matters indicate that industries with structured gifting plans noticed a measurable difference in both client and employee satisfaction levels within the first few months.

What is New and Trending with Gifting

Corporate gifting is beginning to transform way beyond the typical diaries and calendars. Companies now seem to like curated gift boxes, personalised hampers, brand merchandise, as well as gifting experiences with things like meal vouchers and wellness kits.

There has also been an increase in interest in professional or theme-based gifting. The focus of gifting is now on useful and thoughtful gifts that align with the organisation’s identity. Packaging also matters. When a gift arrives in well-designed, branded packaging, it also increases the excitement and the perceived value of the gift.

In a time of auto – work, meaningful connections with other humans shine. Corporate gifting is becoming more than just an activity that makes you feel good, it is simply a smart, measurable investment in your relationships. It promotes loyalty, gets your customers to continue buying from you again and again, and increases employee engagement. The message for businesses is simple: appreciation matters. And if you do it well, you can get real impacts of value from gifting.

As the saying goes, Gift Relations. Build Loyalty.  In today’s business world, relationships win.

Karan Sehdev is Founder of Merch Matters