Why Gift Giving Makes Good (Business) Sense

One of the keys to having a successful business is to develop meaningful relationships with customers and employees. One of the ways you can create and maintain those bonds is through the use of custom branded gifts. There are many benefits associated with promotional products especially when looking at how they can help you foster positive relationships with those who are a pillar to your growth. Here are some of the reasons you should consider incorporating promo gifts into your next campaign.

Break the Ice

Before you can strengthen a customer relationship you must first develop one and branded gifts are particularly good at this. Firstly, people love receiving free things which makes them happy so you can use this to your advantage when it comes to promoting your business. People are more likely to be receptive to your advertising if it comes in the form of a free gift, as opposed to an overtly salesy radio or tv ad. Promotional gifts offer a subtle yet effective way of pushing your branding forward when you add your logo to specialty items or culturally relevant products.

Encourages Brand Loyalty (Reciprocity)

Gift giving makes sense and works in part due to “The Reciprocity Principle” which suggests that in many social situations we feel obliged to pay back what we receive from others (Forbes). This is one of the basic laws of social psychology which businesses can apply in their advertising strategies. Basically by giving out branded gifts, you are encouraging recipients to give back something in exchange. That something often comes in the form of continued business, an idea supported by the ASI study which found that when it comes to drinkware “71% of Gen X’ers are more likely to do business with the advertiser that gave them the product” (ASI). When you provide branded gifts, you are establishing the basis necessary for developing a long term relationship: reciprocity.

Budget Friendly (Staying Power)

If you are a small business owner or working with a limited budget, every dollar counts. In terms of an advertising method that offers the best bang for your buck then the choice is easy. Promo gifts have great staying power compared to TV ads or billboards whose advertising message have a deadline. Branded products are often kept for a long time, and even passed down or re-gifted giving you additional exposure at no added cost. The long lifespan of many promotional products make them a cost-effective way of reaching your audience.

The value of developing meaningful and long lasting relationships is higher than ever, as many industries and companies deal with the challenges brought forth by the world pandemic. Establishing true connections, whether it’s with your team or your customers is arguably more important than it has ever been. As a business owner, your supporters and the people that work with you along with the community you operate in, are the heart of your success that is why it pays to give back and nurture your relations with the use of branded gifts.