Why Corporate Gifts Work


Research has shown that giving thank you gifts and free items with purchase to customers have a direct impact on word of mouth marketing. Word of mouth marketing can increase your reach by 15%. While most consider word of mouth marketing to take place on social media, 9 out of every 10 brand mentions happens face to face.

Consumer buying research suggests that people would rather get more than spend less, so a thank you gift with a significant or targeted purchase can have a big impact on brand loyalty.

To learn more about the impact of corporate gifts on recipients, you can read the 2019-2020 Knack Business Gifting Strategy Report.

Here are some of the key summary points:

  • 57% of respondents say gifts can impact both positively and negatively
  • C-suite executives appreciate gifts the most
  • Range spent on a C-suite gift is between $50-$150
  • Junior level partners $50-65
  • Presentation matters – think about packaging and shipping
  • Giving gifts humanizes your company
  • Avoid political or emotionally charged gifts, it often backfires

The overall summary of the report is that corporate gift-giving is an important tool in retaining customers.

The overall research into the impact of corporate giving indicates it has a significant impact on your bottom line. When done correctly, can have a significant return on investment, increase brand loyalty, maintain customers longer, and improve business to business relationships.

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