Everyone in marketing realizes that gift giving is a surefire way to build relationships with customers and prospects. But what do customers really want? Choosing promotional items or giveaways that they’ll appreciate, and that suits your message aren’t easy. To help make your decision a bit easier, here’s a list of the 10 of the most popular gifts companies give to customers.
1. Gift cards are becoming the most popular gift among companies, as the appeal of gift cards among consumers continues to grow. From holiday gifts to rewards for employees and customers, companies including financial services, are increasingly using gift cards as giveaways.
Quick Facts: The 2007 Incentives Magazine survey reports that 82 percent of businesses give gift cards and gift certificates. Of those, 74 percent gave gift cards and certificates for employee recognition, 46 percent for sales incentives, and 17 percent for consumer promotions. According to American Express®, 32 percent of consumers say they would like to receive a gift card as a reward for a job well done this year; only cash and checks were more sought-after gifts from an employer. In addition, more than 28 percent say they currently have a gift card in their wallet or at home.
2. Company branded items like apparel and sports-related items can be great gifts for customers. There isn’t a place in the US that doesn’t have a favorite team (whether it’s a national league or local high school team), customers are cheering loudly. To make an impression think of imprinting your logo on baseball caps, sports water bottles, ball markers, sports towels, tennis balls, and walking odometer, sweat shirts, wind breakers, jerseys, games, and toys. It’s an effective way to keep your institution’s name and phone number in plain view.
Quick Facts: Nearly 24 percent of small-business owners give company-branded or monogrammed items as gifts. 68 percent of consumers prefer to receive and give apparel.
3. Electronics are the latest craze for giveaways for companies everywhere, banks and credit unions are no different. Many financial institutions like Citibank® have provided Apple iPods® in exchange for “new” customer bank accounts. Because smart gadgets like the iPod, Blackberrys® and the like are the hottest consumer gift trends today, sending these to your most valued customers will add pizzazz to your marketing strategy. Some less expensive electronic gift ideas include Bluetooth® headsets, thumb/flash drives, radios, cameras, and clocks.
Quick Facts: Apple shipped nearly 4.6 million music players last quarter, more than six times the number a year earlier. Electronics sales are also expected to reach $160 billion, up 8 percent from $148 billion last year, according to the CEA (Consumer Electronics Association).
4. A donation to charity is not new to the financial services industry. By contributing to a greater good on a customer’s behalf everyone wins. The charity benefits by getting the capital it needs for maintenance and expansion, like a new wing in a hospital or to feed the hungry, etc. Customers get the warm fuzzy feeling of knowing that all they had to do was open an account to help someone give someone else a warm bed to sleep in, or to give a child a place to go after school. Banks and credit unions reap the benefit of great PR and marketing opportunity in promoting the event, as well as a reputation of being community-oriented.
Quick Facts: About 19 percent of businesses will give a charitable donation on behalf of customers.
5. Food is another top runner for the most popular consumer appreciation gifts. These sugary, salty, and savory treats tend to tempt the taste buds of everyone within 3 inches of the gift basket or gift box. Because of its versatility, this makes for an exceptional business gift and marketing tool. With it, a company can boost employee morale and incite customers to continue to do business with you.
Quick Tip: To personalize the basket, consider imprinting your logo on the ribbon of the gift basket, on the outside of a gift box, or on the wrapping paper. You may want to include a handwritten note for an even more personal touch.
6. Calendars are traditionally the gift of choice when an institution is more conservative, or has a tight budget. Although it’s an old idea, it’s still appreciated because they're useful the entire year; and during that time your customers and prospects are looking at your name, and contact information almost daily.
Quick Facts: 45 percent of companies say that they send out a business calendar to their customers each year.
Quick Tip: If you want to update your calendars look consider purchasing a different calendar styles like a calendar pad or easel calendar, as opposed to a wall calendar. You may want to consider choosing bolder colors, photos, and fonts to make it more interesting.
7. Entertainment and recreational tickets to games, concerts and movies are coveted by consumers, especially consumers in the B2B world. These are impressive gifts that leave a lasting impression.
Quick Tip: Be aware that if you purchase tickets to an event, game, movie, etc. that you plan to attend may not be considered a gift for a business gift tax deduction.
8. Books can be a fun and inexpensive gift for customers, that can be cherished times over. When buying the books, cookbook, travel books, sports books, gardening-related books, historical books, children’s books, etc.
Quick Tip: Be sure to remember that if you gift a coffee table book, do not choose one that is provocative or explicit. Also avoid political books, or books about religion, and self-help; customers detest these and may take offense.
9. Plants are keepers, no matter how they are delivered. Potted, in a vase, or in a box, plants make excellent gifts. Cost-effective and flexible, this gift gives lots of options; wild flowers, kitchen herbs, flower bulbs, small trees, seed paper, and so on. Most companies prefer to give potted plants on average, because they last longer and implant your company having given it to them each time it blooms or grows another inch.
Quick Tip: The beauty of giving plants is that you can easily personalize them. Imprints can be placed on the vase, pots, box, ribbon, in the seed paper, etc. Beware of sending roses or exotic plants; or poisonous plants that may be hazardous to kids and pets.
10. Home items gifts give mortgage loans customers the notion that you understand how much they love their home. These gifts may consist of bird feeders, doormats, a newspaper subscription, American flags (seasonal flag work too) or weather vanes, etc.
Gift Giving and Tax Deductions
The IRS permits a $25 for business gifts for each person per year, without limitations of how many people receive the gift. Furthermore, there is not a limit on the amount you spend for those gifts; however, your business gift deduction will still be limited to $25 per recipient. Translation, if you plan to send your customer a $50 gift basket you can only deduct $25 deduction. But, if you give two gifts to a customer over the year, for instance, a gift valued at $10 and one valued at $15, this is also acceptable and within the maximum $25 deduction.
Be advised that the $25 deduction does not include costs associated with packaging, gift-wrapping, engraving, or distribution.
Pens, mini- flashlights and such
items that cost $4 or less, have your company name clearly and permanently imprinted on them, and are widely distributed may be deducted without limitation.
For more information about tax deductions, please contact the Internal Revenue Service (IRS). For gift ideas, contact Curtis 1000 Inc. at (800) 766-1007 or contact the MarketWise Group Strategic Account Manager, Mark Thompson at mlthompson@curtis1000.com.
Additional Sources: AgStar Financial Services and the Microsoft® Small Business Center
