Home Strategy How Corporate Gifts Improve Customer Retention and Engagement

How Corporate Gifts Improve Customer Retention and Engagement

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Here’s how corporate gifting can help your small business improve customer retention and engagement in 2022

If you’re wondering how corporate gifts can help your business in 2022, then you’re in the right. 

Several businesses have seen tremendous results making corporate gifting an essential part of their marketing strategies. Today, more are turning to gift-giving for increased profit, with 63 percent attributing it to improved customer-client relationships.

You probably don’t want to be left out. 

In this article, we shared five ways corporate gifting can improve your customer retention and engagements, leading to more sales.

Must Read: 72 Unique Corporate Gift Ideas Your Client Will Love

5 Ways Corporate Gifts Improve Customer Retention and Engagement 

So, let’s get to it.

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Creates Brand Awareness

Did you know that corporate gift-giving is an effective marketing strategy for brand promotion?

Indeed, it’s one of the numerous efficient ways to increase brand awareness and build a positive reputation. The idea of gift-giving creates a positive thought, which is crucial for business success

You can attract customers and gain referrals with little effort with a positive brand image.

Why? Because your brand name speaks for you.

For example, giving out branded T-shirts can spread your messages effortlessly, improving your invisibility. Besides this, you can gift other things like personalized mugs, power banks, and branded pens. 

Improves Employee Commitment and Loyalty 

Your employees are as valuable as your most active customers. So, also have them in your plan for corporate gifting. It helps improve customer commitment and retention.

In a survey by Forbes, about 80 percent of the participants admitted that corporate gifts have helped strengthen employee retention.  

Besides fostering a sense of belonging, corporate gifts also give employees a positive attitude toward the organization. They can also motivate the workforce, improving productivity.

Improves Relationship With Customers

A thoughtful present tells your customers that you value their relationship, you care about them, and you aren’t interested in just their money.

Your relationship marketing strategy’s impact could depend on how well you can make your customers feel appreciated while offering them services for their money. So, don’t hesitate to throw a gift or two their way once in a while to make them enjoy buying from you.

It also helps build trust and could make the difference between a customer buying from you and the competitor next door. Corporate gifts can put them in the right frame of mind to respond to your referral requests.

The reciprocity principle suggests that customers are more likely to be responsive when they feel indebted to you. 

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It helps You Stand Out Among Competitors

Beating the competition is one of the biggest challenges for small businesses.

Of course, it’s not a walk in the park, but one sure way is to do what most brands don’t—corporate gifting. If you’re looking for inspiration, you might want to check out this article on unique corporate gifts for clients.

Giving gets you noticed and gives you an advantage over competitors when acquiring new customers and hiring fresh employees. Use it to your advantage.

 Read: Top 15 Challenges of Small Businesses In 2022 and How to Navigate Them

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It Increases sales and Leads

You need to have a good relationship with customers and employees to improve sales. 

Corporate gifts help your brand build and maintain good relationships, directly impacting your sales. 

First, your employees are motivated to work because they feel deeply appreciated and cared for. Furthermore, clients feel valued and indebted to the business, and most try to repay their debts by buying from you and referring new businesses to you.

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How Corporate Gifting Has Worked for Some Firms 

Here are two brands killing it with corporate gifting.


Medical equipment manufacturer AlterG offered prospects an additional incentive of an Amazon gift card following a successful sales call by sending them a personalized tumbler.

This combined strategy produced 34 new opportunities with a pipeline value of more than $1 million. 

The campaign’s return on investments was an incredible 434 percent, demonstrating that even little sends can significantly impact results.


Alleyoop found that gifting before a scheduled call increased their phone connect rates by 20 percent. They did this using little gifts (like colorful, branded socks and coffee e-gift cards).

Their meeting completion rates have also gone up by 20 percent.

Alleyoop started employing direct mail on its clients’ behalf after being satisfied with their internal results; some clients experienced a 45 percent reply rate and a 25 percent conversion rate.

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How to Give a Corporate Gift the Right Way

Now that you’ve learned how much a corporate gift can do for your business in 2022, I’m sure you’ll want to incorporate this method into your business strategy.

Great idea! But there’s a caveat: giving the right way. Don’t worry; we’ve got you covered.

Learn the Origin of the Gift

Nowadays, with climate issues and environmental hazards, product users carefully research a product’s constituents before buying.

So, when getting someone a gift, remember that they might reject it if it goes against their morals or contains ingredients they don’t consume. 

For example, if you’re presenting something edible to a vegan customer, the wise decision would be to ensure that your gift doesn’t contain beef, milk, or other animal-obtained ingredients.

Here’s where knowing your recipients come into play.

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Know Your Recipient

Before giving a gift, ensure it’s something the recipient likes or will enjoy.

So, you must know what the person likes to ensure they don’t politely reject your present. 

You don’t necessarily need to know the client’s entire background.  Minor details will suffice. Establish a relationship with your customers and get to know them better. When it’s time to give them a present, you’ll know what to get them.

Ensure the Gift Doesn’t Send the Wrong Message

Since corporate gifting aims at giving an impression to the recipient, you want to ensure you don’t send an unintended message to the person. 

The impression you make on the recipient depends on the message your present sends.

For example, giving a client a branded t-shirt made of substandard materials gives the individual a reason to question your company’s standards. 

They’re likely to think that, like the t-shirt you gave them, you also offer substandard services or goods. 

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Ensure You Give out of Genuity

Your intentions behind gifting often influence the quality of and gift you give.

If your sole purpose for corporate gifting is to gain brand publicity instead of appreciating a customer, you’ll struggle with finding a good gift idea.

As a business owner, putting your customers first is the best way to succeed in your firm. When you do so, you’ll find yourself doing more favors for them, and in return, they’ll choose you over your competitors.

Don’t Give Substandard Gifts

Ensure what you give befits your standard. It doesn’t have to be expensive.

You also want to ensure that whatever you’re giving must be functional and not become a liability.

For example, if you’re aiming to solve a client’s time management issues and get them a low-quality watch that stops working after a few days, you’ve not only given them a substandard gift but also added the problem of having to fix the watch. 

You can make do with simple items that’ll create a positive impression on your client.

Not All Gifts Must Be Tangible 

Physical gifts are the most common corporate presents, but why not try something different? 

For example, buy your employees lunch to show how much you appreciate them.

You could also give customers a discount or offer them free delivery for a product they bought from you. Doing so might relieve them of some of their financial load. 

People are more likely to remember such thoughtful little acts.

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What Next?

Actioning the tips in this article to build a brand your customers will love.

Gift-giving can be a trump card to promote customer retention and engagement in 2022. Also, it promotes brand awareness, differentiates you from the competition, and wins you more sales. 

The strategy has worked for many businesses and will work for you too.

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Disclosure: This content has a few affiliate links, which means if you click on them, I will get a commission (without any extra cost to you).


  • Chinasa Ferderick

    Ferderick is a highly skilled marketing expert with a passion for helping small businesses thrive in today's competitive landscape. With his comprehensive knowledge of the industry and expertise in marketing and SEO strategies, he has successfully assisted numerous businesses in achieving their goals.

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