The size of the corporate gifting market has grown rapidly throughout the pandemic (currently worth £176 billion), with businesses making this a priority as opposed to just standard procedure.  
Now growing faster than the rest of the gifting market, corporate gifting is a popular strategy used by businesses to drive revenues, enhance brand image, and boost productivity. The practice itself most commonly involves buying a customer or employee a physical gift or service at the hopes to build or maintain rapport. This article aims to further explore the benefits of this practice, focusing on both external and internal stakeholders. We also thought to conclude by providing a few of our favourite luxurious and customisable corporate gift ideas sold, here, at Farrar & Tanner. 

Internal Stakeholders

It could be to reward them for excelling in a project or reaching a certain goal. Or perhaps to incentivise them to complete smaller tasks, such as filling out valuable feedback forms for the company. Of course, verbal praise is extremely important and widely appreciated but sending a physical gift, perhaps as a reward for exceptional work or a yearly thank you, shows a real recognition of that person’s work ethic. This has proven particularly important during the pandemic where, as employees were working remotely, a physical gift added a touch of reality to their otherwise virtual world.  

As a result, a gifted employee will likely feel motivated to maintain a high standard of work at the hopes to be rewarded again; similarly, it may encourage other, non-rewarded employees to match the hard-working efforts of their colleagues. Due to this likely positive feedback loop, overall productivity should be enhanced within the workforce. It really is a win-win for everyone involved! 

Furthermore, corporate gifting is a non-monetary measure that businesses can use to increase loyalty amongst their employees. Studies have highlighted a strong link between employee satisfaction and loyalty which further emphasises the importance of keeping your staff happy.  

External Stakeholders

It is integral for a business to establish relationships with new, potential customers as well as maintaining those with current ones. Corporate gifting is a proven marketing strategy to secure these relationships - creating brand loyalty and driving sales respectively.  

Let’s say a customer is on the fence about whether they want to purchase from your company. Sending a corporate gift may just be the difference between getting overlooked and guaranteed future purchases. If the customer likes the gift, they are likely to engage with your brand and explore what else it has to offer. By giving them a flavour of your brand, this way of marketing may secure future purchases. 

Whilst increasing the customer base is very important for the growth of any business, it has been shown that it costs around five times more to acquire a new customer than simply retaining an existing one. In this way, there is a growing need to think of new and innovative ways to ensure that existing customers do not lose interest. 

Gifting is a simple way of letting these customers know that their business is valued, as well as reminding them of what the company offers (especially if their last purchase was a while ago). The customer may subconsciously feel the need to reciprocate the favour by supporting the brand in some way, whether it’s purchasing from the company again or even engaging with their socials.  

Finally, for both existing and potential customers, corporate gifting will likely enhance brand reputation. Receiving an unexpected gift, especially a personalised one, really ignites positive feeling. It is likely that the gift recipient will want to spread their experience with others who will also develop a positive attitude towards the brand.  

Remember to check the Bribery Act 2010 before corporate gifting to ensure your ideas align with the current legislation.