Introduction
Studies have long indicated that the cost of acquiring new
customers is far more than the cost of retaining existing ones. The
same goes for your hardworking employees--naturally you want to
hold on to your shining stars. You can do so with corporate gifts
and incentives.
In today's job market, keeping your employees happy is
critical. Offering a beefy benefits package isn't your only
option. Gifts and incentives will keep employees smiling. Same goes
for your clients-your thoughtfulness could keep them from taking
their business elsewhere.
Even small businesses can find ways to work gifts and incentives
into their tight budgets. Investing in a gift will cost you, but
it's a long-term investment in the relationships you have with
your employees and clients. That easily outweighs any price
tag.
Content Continues Below
You appreciate your clients and your employees; it's well
worth it to take the effort to show them.
What are gifts and
incentives?
It's important to realize that corporate gifts are not
promotional items. Giving a gift or incentive is completely
different from giving a promotional item-save your logo-laden
tchochkes ("CHOCH-kees") for trade shows.
Corporate gifts are given to clients with whom you have an
ongoing working relationship. They can also be given to your very
own employees to recognize outstanding performance or for a
personal achievement like a promotion or birthday.
Take note that sales incentives differ from gifts. They
recognize employees who reach a certain goal-and employees work to
achieve these goals in order to get the incentive. Incentives can
range in value and type but are usually more extravagant than
corporate gifts.
When to buy for
clients
You may immediately think of the holiday season as the time when
businesses give corporate gifts to their clients. But there's
no gift giving protocol that requires you to stick to the holiday
season. In fact, you can separate yourself from the pack by giving
in the off-season.
For example, think about giving a gift after the completion of a
big project you've worked on with your client. Or how about
recognizing a special event? Did your client just open a new
office? Gifts are a thoughtful way to say
"congratulations."
There are definitely many appropriate times to give gifts-there
are also times when you absolutely should NOT give gifts. For
instance, don't give a gift during a bidding process. It could
easily be taken as bribery. And if you don't have a friendly or
close relationship with a client, it's best to not to give
gifts of any real significant monetary value.
When to buy for
employees
Like clients, holidays are a popular time to buy for employees.
It's a good way to say "thanks for a great year" and
the best time to give an annual bonus.
Recognize personal achievements, like birthdays, promotions, and
the birth of a child with gifts-even something small is thoughtful
and chances are it will be much appreciated.
As far as incentives go, the choices are all over the map.
Although you may be most familiar with sales incentives, they
aren't just for sales employees. A marketing team that
generates a killer campaign by deadline, or an engineering team
that gets a great Web site up and running ahead of schedule, are
targets for incentives. Consider gifts like cell phones.
Gifts for
clients
Now that you've decided when to give, the question is what to
give. And it isn't that easy--you have lots of options.
Food is a very popular and cost-effective choice. Chocolate,
wine or other liquor, fruits, cheeses-the options are endless.
Popular non-food gifts that are also fairly inexpensive include
flowers, tickets to events, and items for the office.
Whatever you give, personalizing it can score you big brownie
points. Think back to your conversations with your client. Did he
or she mention a special hobby? If the gift coincides with the
hobby, you can count on your attentiveness being appreciated.
For example, if your client mentioned a love of fishing, a
simple book on fishing will do the trick. Even just personalizing
an item with their name will be seen as thoughtful.
Stay away from charitable donations-- although giving to a
worthy cause can seem like a fail-safe, it isn't very personal.
Clients who don't believe in the cause of a particular charity
may find the gift offensive.
Gifts for
employees
Plaques and trophies are a great way to recognize a special
achievement your employee makes. They're personal and can be
displayed wherever the employee chooses.
Bonuses are a good idea for employees. The idea may seem
impersonal, but you can be sure money will be well received. It can
be given as a year-end gift, or as an incentive.
Of course, an incentive doesn't have to be money; it can be
a trip, or even a car. Keep in mind that the bigger the incentive,
the harder your employees will work for it.
Gift
Etiquette
The number-one rule, with both employees and clients, is to not
offend! And that doesn't just mean not giving Santa and
reindeer-shaped cookies to your Jewish client. There are many other
ways to offend that you need to make sure to avoid.
Find out any gift-giving policies-especially with clients. Give
a call to the business and ask the receptionist or the personnel
department. You may not even realize that your own company has a
policy, so check it out before choosing a gift for your
employees.
Extravagant corporate gifts (not incentives) are inappropriate.
Not only do they come across as bribery with clients, they can make
the recipient feel uncomfortable (especially if they want to return
a gift).
You may feel like delivering the gift in person, which is fine.
Just don't wait around while they open it. On the other hand,
if you've sent the gift through the mail, don't confirm
arrival by asking the recipient if they've received it. Call
the vendor instead.
Where can you get
them?
If you don't have time to run to a store and the post office,
try buying online. There are plenty of places to buy gifts where
they'll take care of the shipping as well.
Better yet, there are sites aimed just at corporate gifts and
sales incentives. Check them out for gifts, as well as ideas for
gifts.
How much should you
pay?
You don't have to spend a lot to make a good impression with
your clients or employees.
It's common for businesses to spend less than $50 total for
each client gift. It's also common to tailor each gift to
specific clients-if they do more business with you, you may want to
spend more on them.
Monetary gifts for employees are up to you-they can be a set
amount, a percentage of certain earnings, or a percentage of the
employee's salary.
If you're a small business and considering an incentive
program, a big trip or car is probably out of the question.
Instead, consider awarding a day trip to somewhere close by like an
amusement park for the family, or leisure-oriented items like show
tickets, mountain bikes, a trip to a day spa, or a night at a swank
hotel.
Even if you are on a tight budget, you can still give gifts and
incentives. Just be creative. Put the word out that you're
looking for help. There could be some creative and crafty people
right within your organization who are willing to help you out with
ideas or the actual gifts.
With all of the options out there, gifts and incentives are
affordable. And just think--gift-giving and incentive programs are
not just a sign of generosity; they are an important part of
maintaining positive and healthy relationships with both your
clients and employees.