Show your appreciation with corporate gifting

Learn more about the corporate gifting industry and how to start using these tactics for your business.

Delight Your Customers With Unique, Curated Gifts and Experiences That Will Drive ROI

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Kelsie S
Head of Marketing
Intello
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Great, affordable platform with flexibility.

Postal's platform is flexible and allowed us to justify the expense of the platform, and base our volume expectation to build an ROI model for direct mailing.

Abe B
Senior Director of Business Operations
Opendorse
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Stop stuffing boxes and leverage Postal.io + your CRM

Postal takes the headache out of managing customer send lists in spreadsheets, removes the human capital aspect of purchasing, packaging and sending in a timely manner, and lastly gives you eyes into ROI on your swag spend.

Elluz P
Demand Generation Manager
Maven
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Great platform for Marketing teams!

Our Marketing team recently started using e-gifts and corporate swag to send to prospects at different stages in our demand generation campaigns, ABM, and maintain customer loyalty. We have received great feedback from our Sales Directors, and opportunities stuck in the pipeline are now responding and appreciating what we are doing. Excellent options to choose from!

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Corporate Gifting Industry

Traditionally, the corporate gifting industry involved routine activities. Businesses used gifts to show employee recognition and cement connections with partners and customers.

But the pandemic re-wrote the whole story and sparked new gift industry trends in 2020 and beyond.

Companies realized that well-chosen gifts could connect dispersed employees and reward them for their stellar performance amidst depressing situations. Gift boxes helped virtual corporate event organizers bring a touch of reality and appreciate their valued attendees. Likewise, well-chosen gifts reconnected and strengthened the client relationships that had suffered a blow due to social distancing and quarantines.

New research by Coresight reveals how the raging COVID-19 caused a huge shift in corporate gifting. This study involved 300 corporate gifters across various companies that rake in up to 300 billion in revenues. It also forecasts the trends that will propel this industry in the future. The research’s corporate gift industry statistics predict that the market will grow at 8.1% CAGR through 2024.

Coresight’s corporate gifting statistics also point out several benefits of corporate gifting. More than 80% of respondents swear that gift helps them boost connections with clients and employees, with 48% reporting substantial benefits. Companies use corporate gifts mainly to demonstrate how much they value the recipients, boost client loyalty, and improve employee retention.

Organizations now plan to maintain and increase their accelerated gifting frequencies and amounts. Who doesn’t want those perks?

It’s worth noting that corporate and personal gifting aren’t that different. You need to take time and understand your recipient really well. What kind of gift can help you build an in-depth emotional connection with them?

You see, corporate gifting can get challenging. For instance, gifting whisky to a recovering alcoholic or non-alcoholic would not be appreciated. Similarly, a gluten-intolerant recipient will turn down a gift basket filled with baked foods.

So whether it’s a personal or corporate gift, your personalization game needs to be top-notch.

Both personal and corporate gift buyers look for more or less the same things in a gift. They desire high-quality items (88%), quick delivery (82%), and a diverse variety of choices (81%).

However, corporate gifting comes with an extra layer of complexity due to the high number of recipients. This issue usually comes up during holidays when deciding on the most appropriate one-to-many gifts. That’s where automation steps in to save the day.

Let’s dive deeper to understand corporate gifting industry growth, trends, and strategies.

Corporate Gifting Market Size

The past few years have witnessed the corporate gifting industry skyrocketing faster than other gifting sectors. Coresight research projected that the US corporate gifting market size would hit the $242 billion mark by 2021 and grow at an 8.1% CAGR to reach $306 billion by 2024. On the contrary, personal gifting was only projected to grow at a CAGR of 6%.

Thanks to the pandemic, corporate gifting is no longer a routine—it’s a priority. Gifts to external parties such as partners and clients will constitute 60% of the total estimates, while the internal workers’ awards and recognition will scoop the remaining 40%.

COVID-induced corporate gifting trends have also been witnessed in budgeting. 58% of respondents said they increased their budgets and amounts, with most spending $25 to $125 per gift.

Organizations give out more gifts because they’ve realized their sentimental and emotional benefits. 48% of respondents said that gifting helped them boost relationships with employees and customers, while others said it improves sales and generates leads.

Business-to-business companies that prioritize corporate gifting and direct mail marketing can post more than 10X return on investment. That’s why more companies are consolidating gifting programs into employee motivation and customer retention efforts. They’ve realized that gifting isn’t just a marketing thing. Other departments such as HR and customer care need to jump on the bandwagon to strengthen the whole process.

Gift Industry Trends 2021

COVID-19 restrictions accelerated growth in online shopping, a trend that was already steadily rising pre-pandemic. In fact, the 2019 National Retail Federation (NRF) survey revealed that 46% of Gen Z were using social media for hunting down gift ideas. And according to a Deloitte survey, 31% of buyers say that social media platforms can influence them to buy a gift.

Hootsuite and We Are Social revealed that 27% of social media users were looking for inspirations for new items, while 26.5% were actively searching for items to purchase. That’s why it is crucial to promote your gifts via social platforms, taking full advantage of ads, reels, stories, hashtags, videos, and other functions.

The pandemic also prompted end-users to expect convenience shopping. Catalyst and Kantar’s study found that 66% of buyers chose retailers that offer more convenience. That’s why “click-and-collect” free delivery and returns are some of the gift shop trends gathering speed.

Personalized gifts are also among the biggest gift industry trends in 2021. In fact, 85% of gift consumers say personalization is among the leading factors that guide their choices. They want to craft their own cute messages, include the recipient’s name, and select their most preferred wrapping. Allow your customers to customize the perfect gift for their loved ones, and they’ll be your revving fans and customers for life.

People are also increasingly looking for meaningful gifts to help them console each other through tough times. This means you need to assist your customers to show their loved ones how much they care, despite the separating distance.

Expect these trends in gift-giving to continue shaping the industry long after the dust of COVID has settled.

Corporate Gifting Industry Report

Personalized gift industry statistics reveal that this niche isn’t showing any sign of slowing down. According to Data Intelo’s online gift market statistics, personalized gift-giving was valued at $26.3 billion in 2019. This value is expected to increase at a CAGR of 9.5% to hit the $41.3 billion mark by 2026.

The growth is due to the rising gifting culture of cultivating and nurturing relationships. Increasing disposable income is another factor that’s expected to stimulate the personalized gift market.

Historically, gift baskets hold a special place during special occasions, such as birthdays and holidays,and as congratulations or “thank you” gestures. The pandemic also saw food gifts delighting people, as revealed by the jaw-dropping gift basket industry statistics in 2021.

Sure, the pandemic slowed down sales due to economic fallout and social distancing. But as online shopping grew, food gifts sales were expected to grow from $21.25 billion in 2019 to $26.15 billion in 2024, representing a compound annual growth rate of 4.2%.

According to Packaged Facts, premium packaging and presentation is the secret to optimizing food gifting. It makes the gifts more appealing, bolsters brand image, and helps justify the high prices.

Luxury Corporate Gifting Companies

Top corporate gifting companies like Postal have found a niche in high-value gifting for employees and clients. They know that every serious company looks to offer gifts that stand taller from the perk to drive customer loyalty and sales.

While a luxurious gift is an ultimate gesture of showing your clients how much they matter, the real impact goes deeper- it creates a positive and long-lasting impression on the clients.

First, your gift will create an impactful and instant satisfaction. This immediate benefit can set the customer in a positive mindset and boost their willingness to negotiate business.

And if the customer will be using your gift frequently, you’ll stay on top of mind. So, prestigious gifts help your company forge a deeper and more positive relationship with your high-valued clients.

High-end gifts are quite exclusive compared to regular corporate gifts for employees and managers. But that doesn’t mean you have to break your bank. Reputable luxury corporate gifting companies can help you convert a less expensive item into a unique and prestigious gift.

They’ll ensure the client gets unique corporate gift boxes, styles, designs, and quality. The service can give that gift a personal touch to forge a deeper connection. The trick can be as simple as engraving the client’s details and a strong message on the gift.  

Corporate Gifting Companies

The upward growth in the gifting market means one thing: Corporate gifting companies in the US and worldwide will most likely continue to skyrocket.

As corporate events hopped on the digital trend, they sought online formats to boost engagement, with 48% of executives using gifts for events. Even as events gradually return to in-person formats, hybrid gifting options are here to stay. Thus, more gifting companies are looking to tap into this increasing gifting frequency to deliver creative options.

Based on “per gift” expenditure, the desire for high-quality and custom corporate gifts has increased. Most corporate gift buyers spent around $75-$100 per gift, with 25% and 20% of gifters in this range buying for individuals and groups, respectively.

Another factor contributing to increased corporate gifting platforms and companies is the increase in online shopping. In fact, about 70% of US shoppers went online as the pandemic continued to cause havoc. This online shopping trend drove up the demand for gift cards in the custom corporate gifts industry.

Historically, the corporate gifting arena was limited to gift cards or corporate swag. But more companies are now realizing deeper benefits of gifting, especially those in the retail industry. Since retail goods are now more giftable than ever before, retailers are demanding more gifts to delight their consumers and attract them back to offline businesses.

Corporate Gifting Strategy

Looking to improve your engagement and revenue generation game? Having a corporate gifting strategy is that game-changer you’re looking for.

While a personalized gifting experience is crucial, an overarching policy and strategy is the key to crafting similar experiences for all workers and customers. Plus, it allows you to make the whole process a breeze.

Remember to have a policy on whether or not your workers can receive personal gifts from other organizations’ employees and contacts. Chances are, once you begin sending gifts, your employees will begin receiving gifts too. So ensure to let them know whether it’s okay to get gifts or not.

Establish a crystal-clear strategy that highlights your company’s approach to custom corporate gifting. When brainstorming corporate gifting ideas, consider:

  • Types of gifts
  • Budget per gift
  • When to deliver them
  • How to incorporate your values into the gifting

For instance, if sustainability is your principal value, you don’t want to mail a product across the globe. In this case, digital gift cards present the best option- no more worry about ballooning your carbon footprint or pollution.

Also, connect your gifting with a story or message. We learn this powerful tactic from storytellers who use props to create a lasting memory. Jerome Bruner says that when you present something wrapped in a story, the people are 22X more likely to remember it. Jerome is a cognitive psychologist.

Are you looking to retain your most loyal customers using gifts? The trick is to reciprocate the value they provide to your company. Only 5% of your clients generate about a third of your revenue, so remember to keep them happy and show your appreciation. How? Surprise them with useful and branded corporate gifts, and they’ll stick with your brand, boosting your ROI by 40%. Surprise gifts show that you courteously thought about the customers and the gift.

Manual and one-off sending of gifts can consume time and resources. How about embracing Offline Marketing Automation? And since more than 50% of corporate gifts are bought directly from suppliers, automating corporate gifting is a breeze. The result is optimized use of resources and personalization at scale.

A robust service can help you personalize and simplify one-to-many or one-to-one corporate gifting. The platform can save you the pain of managing individual recipients’ email addresses and sending customized corporate gifts. Just provide the address, and the recipient will get a notification about an incoming gift!

Wrap Up

Learn how you can humanize your gifting approach from beginning to the end to help you put a smile on your clients’ faces. Get started today!