4 reasons to invest in gifting now

During tough fiscal times, gifting can be one of the strongest tools for Customer Success, Marketing, Sales and HR teams to invest in to build and maintain the loyalty of their current clients and employees — and thus bolster overall revenue.

At &Open, 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.

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: an improvement in both customer loyalty and employee retention.

Here are 4 reasons why gifting is a smart investment given its high ROI particularly in a downturn:

As customers feel the pinch on their budgets and companies start cost-cutting measures which may result in increased prices (and the feeling of being ‘nickeled and dimed’), a gift helps create a tangible touch point between you and your customers to make them feel valued and ultimately retain their business.

Our customers have found that gifting produces a 28% increase in customer retention rates. For churn-reducing gifting campaigns, a whopping 19% of customers return within 90 days after gifting.

These numbers make sense. 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, which proves to be even more difficult during recessions.

Another upside of gifting is increased brand loyalty and advocacy. This can take shape in increased spend but also organic word of mouth. Our clients often see their gifts mentioned on social media, which is an added bonus since it helps to increase brand awareness without any extra marketing dollars.

This approach is so effective, our clients have seen increased referral rates of 36% with just one gifting campaign. In an ever-competitive market, natural brand advocates are some of your most valuable assets.

During economic downturns, retaining your best talent is paramount for success. A well-timed gift improves engagement by showing employees how much they’re appreciated. It helps keep them around for the long haul, especially when other offers roll in. As one report shows, 57% of surveyed employees said they’re more likely to be loyal and continue working for a company that rewards staff through thoughtful gifting. Not to mention gifts sent during the interview process, which can help recruit star performers into your organization as they weigh their options.

Considered gifts can also boost employee morale should your company be impacted by layoffs. Gifts that celebrate work anniversaries or support mental health and wellness help remind top talent that your company prioritizes investing in their wellbeing and happiness — no matter what.

Sales teams don’t have it easy during recessions. They’re competing for hard-earned dollars 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, which is why gifting is so impactful. The right gift helps Sales teams standout and win new business.

One company increased their response rates 5x through gifting, and on average companies saw a 15% increase in meeting show rates after the prospect has 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 made 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, we specialize 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.

Chat with us today to get started on your gifting journey.