Wish to generate a better marketing ROI? Consider the art and science of gifting.
In a world filled with content clutter, a valued gift actually speaks louder than the slickest ads which money can buy.
Thanks to the book Giftology — The Art and Science of Using Gifts to Cut Through the Noise, Increase Referrals, and Strengthen Client Retention, I’ve learned that not all gifts are equal. Certain gifts may actually do your brand more harm than good!
Conversely the right gifts can yield untold profits and possibilities, provided that they’re done with your recipient in mind.
In this article, you’ll learn all about the benefits of mindful gifting, the types of gifts that you should give to prospects, suppliers, clients, employees and other stakeholders, as well as how much you should spend on your gifts plus the best time to give a gift.
Why Gifting Works in Marketing
Since time immemorial, humans have been giving gifts to each other. The right gifts help to commemorate events, while allowing us to demonstrate the importance of people, places and things in our lives.
In the marketing world, gifts work because of the following:
- They symbolise the value you place in a relationship
- They trigger reciprocity in the recipient (see the principles of influence here.)
- They help to demonstrate the principle of radical generosity in your firm
- Unexpected gifts can break through the content clutter—especially physical items
- They can help to increase referrals by both pleased clients as well as prospects
Who Should You Give Gifts To
In the business world, there are many people that you should consider giving a gift to. Some of the suggestions were pretty insightful yet surprising:
- Prospects: This probably goes without saying!
- Clients/Customers: For higher value clients, you should consider gifting on a regular basis
- Employees: Yes, your team members are probably your most important stakeholders, so extend your appreciation to them
- Secretaries/ Personal Assistants: If you intend to give a gift to a boss of a company, don’t neglect his/her PA!
- Spouses/Children/Parents: Sometimes, remembering the family members of your associates with a gift matters. Make your recipient a hero to his or her family members. (And of course, don’t forget your own family!)
- Suppliers: Offering a valued gift to your vendor or partner can help to seal the relationship. You may also improve the service that you get!
- Future-Customers: Yes, the book recommends that even if a prospect has rejected your offer, you can still continue to nurture that relationship if its important enough.
It’s not the thought that counts, but it’s the thoughtful thought that counts.—Giftology
When is the Best Time to Give a Gift
The best gifts are often unexpected and surprising. In other words, don’t just do it during Christmas, Chinese New Year, Hari Raya or Deepavali.
Instead, look at other occasions, like Valentine’s Day, or Mother’s Day, National Day, Labour Day, or other quirky occasions (eg International Beer Day, or Earth Day).
Or even better, just send out a gift randomly without any occasion!
What You Need to Know Before Giving a Gift
In thinking about a gift, you should consider a couple of important pointers:
- Don’t put your logo in there! CEOs and high profile folks will never use something with another company’s logo
- Instead, engrave their names or their logos. This contrarian way of thinking really made sense for me
- Make it all about them… And not about you.
- Practical gifts matter—especially if its something that they’d use every day, like a wallet, high-quality mobile phone cover, laptop bag, golf bag, etc
- No cheap tokens please. Reflect on your own behaviour when receiving a gifts. Most of us would throw away (or store) a cheap plastic pen or mouse-pad with the giver’s company name on it.
- Personalise with a note. Preferably one that is handwritten, and with a nice card attached to it.
- The bigger the fish, the bigger your net. Trying to land a million dollar contract from a CEO is different from getting a purchasing manager to sign off on a $5,000 purchase order.
The Types of Gifts to Consider
In thinking about gifts, the book recommends that you consider the interests of the other party.
If he likes to play golf, then a golfing bag perhaps. If she loves to do yoga, a yoga mat with her name on it? If they enjoy cooking in the kitchen, a set of high-quality knives with their names engraved on it.
Think also about the context of use and whether other people can get to see your gift.
The best gifts are those that other people surrounding the client may see (eg their colleagues, family members, associates). This helps to improve referrals.
Finally, consider how you can personalise the gift for the recipient.
In other words, consider how you can customise it for them with their name, their company logo (if they are the CEO), their sizes, their favourite colour, or other considerations (eg if they drive a BMW, consider an accessory that fits that car).
Gifts to Avoid
So what sort of gifts should you avoid giving? Here’s a list to consider (from the book):
- Anything from Apple (most people already have an iPhone, iPad, or Macbook Pro)
- Starbucks cards
- Fruit baskets
- Chocolates, fruits or nuts
- Gift cards from Amazon or Starbucks
- Cheap luggage
- Cheap plastic pens or stationery set
- Polo shirts with your logo on it
How Much to Spend on Gifting
According to the book, you should consider gifts in the $100 to $1,000 range. Alternatively, you can consider spending between 2 percent and 10 percent of your net profits.
If a client’s net profit is worth about $100,000, consider reinvesting 5 percent (or $5,000) back into that relationship.
The rule of thumb is to think about what you’d pay for a dinner, round of golf, or tickets to a ball game.
Of course, in extraordinary situation, like a huge $100 million contract, you’d probably need to up the ante significantly.
A key thing to consider is whether your gift is the best in class for that budget. So if you only have $100 to spend for a gift, don’t buy a cheap watch for your recipient. Instead, consider giving them a hand-crafted coffee mug (pottery).
When and How Often to Give Gifts
According to the book, you should give gifts as often as you can afford. Wow! In Singapore’s context, I’m not sure if that is practical.
Having said that, its better to give on fewer occasions but with more extraordinary gifts.
Conclusion
Short and snappy, yet packed with valuable practical advice, Giftology is a gift in and of itself.
The book’s philosophy of radical generosity made me reflect deeply on my own business (and personal) practices.
I highly recommend this book to anybody who wish to make a remarkable difference in their business (and their lives).
PS — Go check out their bonus material for lots of additional insights on the art and science of gifting.
