In the August 2008 issue of PPB magazine, Richard Nelson and Rick Ebel reported that U.S. businesses (including nonprofits) spend an amazing $5.59 BILLION a year on promotional gifts.
Of that figure, the overwhelming majority were to thank customers or build goodwill, with new customer prospecting and employee recognition tying for third. Why are businesses spending so much on gifts?
The answer is simple. It works.
Whether it's a coffee mug, a calculator or a water bottle, customers and prospectives like receiving tokens from merchants, don't mind merchant logos or slogans on the gifts and tend to favor businesses who give gifts over those who do not, even if service or quality is equal or better in the non-gifting business!
Employees follow the same pattern. Companies which reward employees with gifts, including desk accessories report higher employee loyalty and higher overall productivity than non-gifting employers.
In the current recession, it may be tempting to jettison the gifts. But research indicates that along with those gifts may go your customers and employees.
Coffee mug anyone?
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