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Why investing in gifting is good for your bottom line

Discover the strategic power of gifting to boost brand loyalty and retention.

Richard Pyke, VP of Revenue and Sales7 min2024-03-18

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Why investing in gifting is good for your bottom line

The global narrative around growth has changed

Gone for now, at least, are the days of spend at all costs to acquire that new customer or new user. We’re now in a time where adding the right customers, in the right way, for the right cost is the strategy leading boardroom discussions everywhere.

The path to profitability, return on investment and the bottom line are the new success metrics, and rightly so. Businesses face a myriad of challenges that impact their bottom lines, customer relationships, and employee loyalty.

Amidst these challenges lies a potent solution: strategic gifting

Corporate gifting, when done thoughtfully, is a powerful tool used by Customer Success, Marketing and Sales, and People and HR teams. By investing in carefully curated gifts, companies not only nurture their existing client and employee relationships but also pave the way for enhanced revenue streams.

At &Open, we've helped our clients experience remarkable upticks in revenue and engagement, making the case for gifting even more compelling.

Our clients have seen increased revenue on existing customers of up to 20% in the three months following that customer being gifted. HR leaders at these companies report huge increases in NPS and Employee Engagement scores when a thoughtful, curated gifting process is introduced for employees as well.

Gifting isn't just about exchanging presents. It's about forging meaningful connections that resonate with clients and prospects alike. A well-timed gift has the potential to cut through the noise, spark conversations, and accelerate sales cycles.

According to a study conducted among 300 corporate gift buyers, 80% of respondents claimed that gifts have improved relationships with coworkers and clients. 48% of the companies said gifting had delivered a substantial benefit, as it made recipients feel valued. The result was an improvement in both customer loyalty and employee retention.

Given its high ROI, here are my top 4 reasons why gifting is such a smart and enduring investment.

1. Gifting for customer success and retention

1. Gifting for customer success and retention

As we focus on the costs of acquiring new customers it is prudent to remember those who are already using your products. Customer loyalty, engagement and churn prevention strategies provide high ROI when assessed in this context. Gifting becomes a tangible point of connection, a gesture that demonstrates value and fosters customer loyalty.

&Open customers have seen that gifting correlate with a significant 28% boost in customer retention rates and subsequent reduction in churn. Notably, 19% of customers return within 90 days of receiving a gift from a company, highlighting the lasting impact of thoughtful gifting.

Investing in current customer relationships proves not only easier but also more cost-effective compared to acquiring new clients – gifting provides a real connection that shows people you care, and in turn, results in them wanting to maintain a working relationship.

It’s a wise investment, too, since it’s easier — and more cost-effective — to grow spend with existing customers than trying to acquire new ones

2. Improve brand loyalty, advocacy and referrals

2. Improve brand loyalty, advocacy and referrals

Beyond mere retention, gifting supports brand loyalty and advocacy. Our clients often find their gifts highlighted on social media platforms, amplifying brand awareness organically, without the need for extra marketing investments.

Remarkably, our gifting campaigns have led to a 40% increase in referral rates. As markets become increasingly competitive, cultivating natural brand advocates emerges as a crucial asset for sustainable growth.

Referrals in this sense become a low cost acquisition strategy with a high likelihood of closing due to peer to peer advocacy.

3. Increase employee retention and loyalty

3. Increase employee retention and loyalty

Retaining your top-tier talent is paramount for success. In a world where workplace cultures, their formation within a hybrid work model and measuring how connected our teams feel is as important but as difficult as ever. Having a well planned engagement plan is essential.

A well-timed employee gift improves employee engagement by showing employees how much they’re appreciated. Reports reveal that 57% of surveyed employees are more likely to remain loyal to companies that express gratitude through meaningful gifting.

Reducing unwanted attrition is a key driver of results which support strategic initiatives. Removing the costs associated with talent acquisition, down time and ramping employees can significantly boost revenue and operational effectiveness.

Celebrating work anniversaries, life events or promoting mental health and wellness underscores a company's commitment to its employees' well-being, regardless of external circumstances.

4. Win new customers and shorten sales cycles

4. Win new customers and shorten sales cycles

Sales teams don’t have it easy during times of fiscal prudence with every dollar analysed for a return on investment. They’re competing for hard-earned dollars that customers often don’t feel they have, so sales cycles can drag on longer than usual. One of the major challenges is getting decision-makers to even notice and meet with you.

The right gift helps Sales teams stand out and win new business. &Open customers increased their response rates 5x through gifting, and on average companies saw a 15% increase in meeting show rates after the prospect had been gifted.

In these ways, the right gift helps deliver an engaging experience to help close deals faster so your Sales team can focus their energy on other prospects and keep growing revenue.

With all that said, not every gift is created equal. A thoughtless and cheap gift can actually have a negative impact. A reported 37% of surveyed employees said they’ve felt underappreciated by their employer based on the gifts they’ve received, and 56% of respondents believed the gifts they’ve received from their employer to be “impersonal” and/or “generic.”

At &Open, our platform is designed to allow you to curate a customer and employee engagement strategy that is effective, measureable and simple to use across a wide range of use cases. We specialise in sending thoughtful gifts at scale. Our entire gifting collection is handpicked according to quality, longevity, and design so recipients truly love — and cherish — what they receive.  And we offer them in a range of budgets so you can see real returns with minimal spend.

Talk to me, or one of our sales team today to supercharge your gifting with &Open's powerful gifting platform.

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