Discover the strategic power of gifting to boost brand loyalty and retention.
In times of economic downturns, businesses face a myriad of challenges that impact their bottom lines, customer relationships, and employee loyalty. However, 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.
Richard Mahony, Sales Manager, &Open
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.
Here are 4 reasons why gifting is a smart investment given its high ROI, particularly in a downturn:
During times of economic downturn, your customers can often face budgetary pressures, leading companies to adopt cost-cutting measures. 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 correlates with a significant 28% boost in customer retention rates. 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, a task further complicated during economic downturns.
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.
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 36% increase in referral rates. As markets become increasingly competitive, cultivating natural brand advocates emerges as a crucial asset for sustainable growth.
During economic uncertainty, retaining your top-tier talent is paramount for success. 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. Furthermore, consider the impact of gifting during the hiring process, attracting star performers who value holistic organizational support.
Amid potential layoffs, consider the morale-boosting effect of carefully chosen gifts. Celebrating work anniversaries or promoting mental health and wellness underscores a company's commitment to its employees' well-being, regardless of external circumstances.
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 stand out 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 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 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.
Supercharge your gifting with &Open's powerful gifting platform.