The Business Case for Saying Thank You (Hint: It's Rock-Solid)
It's tradition to give holiday business gifts. Of course, it's a nice thing to do. In some industries, it’s even expected.
These are all good reasons to give gifts at the holidays, but if they’re the only reasons you’re handing out cards and parcels, then you’re missing the most persuasive business reason of all: It boosts the bottom line.
Spending on client gifts is an investment, not an expense
When it comes to customers, studies show that 70% of all buying experiences are based on how customers feel they are being treated. If your customers feel appreciated, they’ll do more business with you, which naturally improves your bottom line. How better to make a customer feel appreciated than to send a thoughtful holiday gift?
Studies also suggest that up to 65% of new business comes from direct referrals, so these happy customers will help build your bottom line by becoming ambassadors, too. It doesn’t just work with established clients either: Researchers at the City University of New York found that customers who received a small gift when they entered a store spent nearly 50% more, rated the company better and offered more positive recommendations.
The takeaway: Gifts build business.
Thank your staff, too, and get more loyalty (and better productivity)
When it comes to employees, the same bottom-line approach applies. The vast majority of employers are concerned about retaining top talent in a competitive market, and thoughtful, well-timed gifts can help. Employees who feel they’ve been recognized for their contributions are far more likely to say they find meaning in their work, which drives both retention and productivity – a double bump for the bottom line.
For the record, these are not small bumps, either. Fully 53% of employees would stay longer at their company if their boss was more appreciative of their efforts, according to a recent study by Glassdoor. In addition to staying longer, four out of five staffers say they work harder when they feel appreciated.
Thinking differently about those holiday gifts? Good! Because…
Smart businesses make gift-giving a marketing strategy
The fact is that if you’re only saying thank you once a year, you’re leaving a whole lot of money on the table. Smart companies understand that regularly giving meaningful gifts is an investment with very high returns, both for customers and for team members.
The holidays are the ideal time to launch a year-round thank you program that fosters a strong culture of appreciation in your company. Remember: The best business gifts are relevant, thoughtful and absolutely delightful. Happy shopping!
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