- October 1, 2015
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Your Guide to Buying Holiday Business Gifts
If you’re among the eight out of 10 businesses that give holiday gifts to customers and business associates, it’s time to start making a list and checking it twice, researchers say.
As the Promotional Products Association International (PPAI) reports, U.S. organizations spend nearly $6 billion for business gifts annually, according to a study by Gfk Custom Research for the Incentive Federation. Some of the popular ideas among these business gift-givers include office accessories, home accents and entertainment certificates to attract and retain clients.
To gain more insight into the Gfk Custom Research data, PPAI commissioned its own follow-up study to examine the buying habits of integrated marketing executives, as well as what is bought, where, when and why. The research netted some interesting results:
Who: Respondents noted that decisions about business gifts were made company-wide, with senior-level management choosing 53 percent of the time, followed by sales and marketing professionals (38 percent).
What: PPAI found that 96 percent of buyers defined a business gift as logoed personal-use items given out to establish good relationships and high retention rates with clients and employees. However, even good will comes with a cost. Two-thirds of respondents said they pay attention to price when selecting gifts. Coming in at nearly 35 percent, most organizations shelled out between $25 and $49.99 on gifts. Another 34.8 percent spent $10-24.99 per gift. It’s important to plan for this expense in your integrated marketing budget.
Where: Businesses go to the source to buy promotional products and rely on printing and marketing services companies.
When: You guessed it: Most businesses dole out gifts during the holiday season.
Why: The most common response to the question of why business gifts were given was “to thank customers,” at 70 percent, followed by “to build goodwill” and “to develop business.” Some professionals considered business gift-giving as a habit; 12.2 percent of those surveyed said they give gifts “because customers expect them.” Surprising, some noted that “damage control” was another variable. (And if you’re attempting to squelch bad press caused by a social media upset, start off by following these three rules.)
If you’re looking for some creative holiday gift ideas, try out some of the tips presented in “Complement Integrated Marketing with Promotional Products.”
