[Customer Service] Is Gift Giving Good Business?

In general, businesses give gifts to promote goodwill and foster good relationships and show appreciation. A business gift is a powerful tool, and one not to be overlooked. Studies show that a thoughtfully selected and presented gift of high quality and taste can indeed help cement relationships with customers and employees alike.

Based on a recent PCT survey, the majority of pest control companies do not give gifts to their customers, though a significant number recognize that customers like to be recognized during the holidays.

In order to better understand the effectiveness of promotional gifts from the consumer’s perspective, a study was conducted by PPAI Research and MarketTools Inc. About 1,000 consumers who recalled receiving a promotional gift in the past 24 months participated in the survey. Here’s what they said:

• 56 percent think promotional gifts are an expression of gratitude for business or actions taken.
• 69 percent generally keep the promotional product if they have a use for it.
• 35 percent generally keep the product if they like the advertiser.
• 83 percent of consumers surveyed reported they like receiving promotional products with an advertising message.
• 89 percent of consumers surveyed could recall the name of the advertiser on a promotional product they received in the past 24 months.

According to the PPAI survey, the most popular gifts for customers were:

• Gift baskets of food
• MP3 player
• Clock/watches
• Digital picture frame
• Luggage
• T-shirts/golf shirt
• Wallet
• Tote bag

Jeff Annis, owner of Advanced Services in Augusta, Ga., says his firm sends 100 to 150 gifts every year to those individuals who refer the most customers to them. "The difference is that we don’t send the gifts in December but rather (we) send a pound cake from www.veryvera.com to arrive on the Monday or Tuesday before Thanksgiving," Annis said. Customers love the cakes and anticipate their arrival every year, something he says that is not necessarily a good thing. "Giving gifts on a regular basis sometimes takes away from the novelty and purpose of gift giving when people start expecting the gifts," he said.

The author owns Compelling Communications, a marketing firm based in Manchester, Mo. She can be reached at jvanklaveren@giemedia.com.