What is Corporate Gifting and Why is it Important for Business?

Your existing and potential clients have been at the other end of too-much salesy calls and dull automated email inquiries. With no touch of personalization and no remindable built-up to the communication, your customers have only one adjective to describe your efforts to reach out—Alienable. 

Even your employees, the real asset of any organization, are missing out on warmth and human touch due to this pandemic-forced remote working - and salary alone is too weak to become a powerful alternative to it. 

The business world is in dire need of a magic wand that will joyously humanize and positively healthify all the relationships that constitute your business ecosystem. 

Corporate gifts, with its inherent capacity to bring the most organic smile on the lips, and thereby getting etched permanently in the psyche of the recipient, thus, is the only and much-touted silver bullet. 

What is corporate gifting? 

Corporate gifting is a gesture of gifting valuables to clients, employees, or any other co-habitant within the business space. Recipients see it as an expression of gratitude, appreciation, and value. 

In essence, with endless gifting possibilities - gift cards, swag products, and premium offerings, to name a few - the real purpose of corporate gifting is to make an indelible impression and create a long-lasting connection with the recipient. 

How corporate gifting can help businesses 

1. Builds stronger relationships 

People prefer to buy from a business they know, like, and trust, making it imperative that your clients become aware of your brand first. 

Perfectly timed gifts can synergize this all-important "Know, Like, and Trust" link. By rewarding potential clients for attending your product launch or sending out a digital gift for watching your product video for the first time, you can establish the first thread of communication with them. 

This first positive impression sets the right tone at the beginning of communication itself, ensuring its further continuance in the future. More than just a strategic move, corporate gift-giving, thus, is an emotionally intelligent gesture. 

2. Strengthens company culture 

Gone are the days where only monetary glitz dazzled the eyes of the cream of the employees. Now, company culture has moved significantly up in their criteria while choosing a workplace. 

Delighting employees with relevant, suitable, and desirable gifts gives you a long rope to achieve that ideal culture, as gifting has the same positive impact on employees as it has on clients. It affects their performance and your client’s satisfaction with the end product/service.

 Get-to-know-you questions can help employers better understand their employees' likes and dislikes when it comes to gifts. This way, they can avoid giving gifts that are not relevant or desirable to their employees. 

However, there are “side” benefits of investing in culture. Gift-giving harmonizes the relationship between employees and organizations and makes them feel valued. 

In that case, they are less likely to leave the organization by contributing continuously with even greater enthusiasm. And the worth of highly engaged, motivated employees is measured in gold, as they set the bottom line in yet-unseen motion by outperforming their competition by 147%. 

3. Revitalizes employees with motivation 

Every organization is as good as its employees—and no organization stands outside of this purview. Motivating them, thus, is of paramount importance in achieving overall operational efficiency and acing customer service. 

However, there is a limit to how much motivation a company can induce in employees in a given day through traditional ways. That’s where strategic corporate gifting comes in handy, as it grandly satisfies that one desire which every employee secretly craves is recognition. 

 What makes business gifting an even more pointed weapon is its ability to become socially recognizable and worthy of peers’ respect. 

It’s then not surprising that the Advertising Specialty Institute found that 70% of respondents said that receiving a holiday gift from an employer made them want to work harder. 

4. Reinforces the brand with the regularity of a pendulum 

The most commonly performed mistake in the corporate world is communicating with your clients sparsely and sporadically—only while trying to sell something or announcing vital achievements. 

This ad-hoc approach is wrong in two aspects: 

• First, such occasions are rare, making you hover less on the horizon of your customers. 
• Second, it deteriorates the customer engagement quotient, as it is not adding any value to customers’ experience. 

In either case, you are not hitting the bull’s eye when it comes to grabbing more eyeballs for your brand. 

This is where corporate gifting at the right point in the sales cycle becomes pivotal since gifts serve as a constant reminder of your brand. 

They keep you in the sight and mind of the customers—an absolute prerequisite for brand reinforcement that is nothing but a psychological reiteration of something already there. 

It takes shape through a practice of seeing the same thing again and again, then relating these repeated instances to an image or item, thereby linking the two concepts. 

Ideally, you’d like your brand to connect to the idea of “innovation,” “good culture,” or even “trustworthy.” Well-timed corporate gifts that aim to accomplish this goal should occur during the “growth” phase of the connection between you and your clients. 

5. Helps advertise in a cost-efficient way 

Anyone who has even half an eye for media spending will know that traditional advertisement forms like TV, radio, hoardings impose astronomical costs. 

Moreover, they deprive you of personalization, as they are meant for amorphous masses. By giving out personalized items that people use regularly and objects that can be made visible all over the office, corporate gifting guarantees nominal cost per impression. 

Digital gifting further reduces the load on your administrative pocket, as it makes sending and receiving gifts as easy as sending emails. 

Moreover, integrating cheaply through APIs makes your gift catalog a feat of diversity, enabling you to delight the recipients by gifting them unforgettable experiences. 

6. Incentivizes mission-critical tasks and book more sales 

The avalanche of digitization has forced the customer journey to go through the most acute paradigm shift. 

Whether it's a small social media post or a lengthy and detailed ebook - you never know what will become the first point of contact between you and your potential customers. 

Incentivizing customers at every stage of their buying journey is not just a strategic masterstroke but is the most-needed thrust for your customer acquisition aspirations. And the world is yet to see a better tool than joyous gifts/payouts to nudge the customers towards a final buying decision. 

You can reward customers for downloading a brochure that authenticates your know-how of the industry. Once convinced, send an invite to attend your webinars by incentivizing them. 

Send them perks during their first meeting with the sales representative by a gesture that wins your customer's heart. Once the closing is done, you can allow him access to your gift-rich catalogs. 

Things to keep in mind while sending corporate gifts 

It’s as clear as daylight that corporate gifting can act as a multi-pronged tool in elevating your bottom line as well as creating durable relationships with all the stakeholders. 

The only caveat is that it needs to be thought out holistically and executed non-erroneously. 

The following mapped-out corporate gifting strategy, thus, doles out the much-needed actionable points to harness the power of giving. 

1. Understand the religious, regional, and social contours of gifting 

Though the receding wave of globalization has made the world one large homogenized global village, the deeply entrenched imprints of the local culture are hard to go. 

Multiple folklores, the cumulative experience of the nation as a whole, history, mythology, and much more carve the social and cultural monolith of countries. Since people are sensitive to it, a wrong gift, even a wrongly presented gift, can become a powder keg. 

Here are a few to begin with: 

• Very few countries have unique gifting traditions like India. Gifting money is considered auspicious in India. Gifting sweets at the corporate level is more than welcomed, as sweets in India mark a blessed beginning. 
• Americans may not bring gifts to customers when meeting for the first time. But gifting to coworkers, colleagues, and customers during the holiday season (late December) is an acceptable norm. 
• In Japan, gift-giving is a central part of business etiquette. When making an initial visit or sales call, it is common to bring a small gift. O-seibo (year-end) and O-chugen (midsummer) are the main Japanese gift-giving times. 
• Good taste is a must while giving business gifts in France. Since the French community is more artistically and intellectually inclined, giving gifts that feature your company’s logo only can be taken in poor taste. 
• In Ghana, gifts are vital to business relationships. Many businesses show appreciation at the end of the year by gifting their customers, vendors, clients, and other business associates. Christmas hampers are preferred gift items all across the country. 
• Australian culture appreciates modesty in business dealings and overselling in the form of business gifts. Gifts as pure tokens of appreciation, however, are always welcome. 
• Swedes consider it appropriate to give gifts at the closing of the deal as opposed to its beginning. However, gifting during holidays is a big yes. 

2. Tax implications 

Tax regimes for gifts vary as per the gift type, and different countries have different rules. For example, the IRS states that organizations can deduct gifts of up to $25 for each individual per tax year. 

It applies to gifts that are given either directly to an employee or indirectly to the family of an employee or a client. For gift cards, the full cost is tax-deductible. Company swag also allows complete tax-deductibility if it costs under $4 and has your company name. 

Remember that getting entangled in the harmful tentacles of law won’t just make a big hole in your pocket but can dent your hard-earned reputation. It’s, thus, advisable to keep records of all the corporate gifts you send, along with the business purpose behind each gift. 

3. Clients’ limitations 

Not all organizations allow their employees and top executives to accept corporate gifts, particularly for government organizations and people of a higher power. 

This makes it an absolute must to check with your client's company first whether gifting is permissible. If you want to send surprise gifts to clients in the coming future, add a question in your welcome process to ask if they can accept gifts. 

4. Set your business gifting goals 

Once you are done with the legal, social, and ideological foundation, the next step is to set up your gifting goals that align well with your big-picture business goals. List them down on the priority level and think about using them as a platform to showcase your business values. 

Meanwhile, create a bulleted list of your values. It should be a bird’s eye view, including what ethics, success, engagement, and aesthetics mean to you. 

Note that humans are wired to indulge in stories. Naturally, gifts that weave up a web of human stories become more memorable, and thereby, everlastingly valuable. They work even better if they dart out from your core values, making their germination unadulteratedly authentic. 

5. Nail the perfect gift moments 

Since gifting is less about merely rewarding and more about humanizing the relationships, gifting should heighten the positivity and happiness quotient in the relationship dynamics. Unsurprisingly, birthdays and anniversaries are the biggest draws in this context. 

However, gifting only in the private sphere comes with a danger—the danger of missing out on the overall canvass of life events. 

Every individual life a multi-dimensional life, giving a stronger reason to believe that more might be happening in the recipient’s life—and you might be required to send more than one gift. 

Therefore, the need is to justify all the personal, social, and professional events in the recipient’s life. 

• Life events: Birthday, Baby shower, Wedding, and Wedding anniversary 
• Work-related: Onboarding, Hiring, Performance, Retirement, Promotion, Initiative, Work anniversary 
• Milestones & achievements: Sales, Team performance, Closing important contracts 
• Festivals: All important festivals of respective countries 
• Important days: Mother’s day, Father’s day, Women’s day, Men’s day, New year 
• Events: Product/service launch, Trade shows, Conferences, Channel activation events, Promotional events, Seminars, Leadership talks 

Naturally, an ideal gift strategy should accommodate these unexpected events and auto-shape itself accordingly to deliver timely gifts. 

The following questionnaire can guide you in nailing the perfect gift moments: 

• How many clients or employees do you have, and how often should you give gifts to them to meet your goals? 
• What are the key events to send gifts in your industry, e.g., tax season, company milestone celebrations, partnership anniversary, real estate peak season, thank you, and, of course, holiday? 
• How have the previous gifting seasons worked for you? Do you need to make any amendments to weed out the past mistakes? 
• What are the key events that your competitors are eying, and what is the cost that you will pay if you miss out on those events? 
• How is the pandemic changing the need for gifting to stay in contact with employees and customers? 

6. Zero-in on your budget 

Once you have identified your key gifting moments, figure out your gifting budget as realistically as possible. 

Take stock of your existing expenses, which might have been exacerbated due to certain unplanned occurrences, prepare a detailed list of your recipients, and then establish your spending amount per recipient. 

What could give a semblance of sense to your budgeting is the industry standard for gift budget planning. 

Approximately, it is $75 per person for individual gifts, $150 for premium gifts, and $20 for office/team gifts. These numbers are research-borne, as studies have found that these are sweet spots in recipients' eyes. 

7. Give right legs to your budget 

The grim reality is most of the companies have a shoe-strung budget for corporate gifting initiatives. The key here is to use every ounce of that budget by vetting each spend cautiously against the possible impact. 

The best approach is to decide what matters most to your business: 

• Reach a larger group of people with smaller token gifts, or 
• Reach a smaller group of people with a more expensive gift. 

Ideally, this priority approach should include handwritten cards for standard clients, a $50 gift for premium clients, and $100 gifts for VIP clients. 

 Challenges that businesses face while gifting 

Despite corporate gifting slowly and steadily becoming the relationship moisturizer across all the industries and information overload of does and don'ts, many companies walk with a lump on the corporate gifting path. It darts out from the fact that one size really doesn’t fit in gifting. 

Each receiver is different. Each country has different laws and distribution systems, and companies have to take a stern stock of all these factors within the available budget. They are about to be inundated with some fierce challenges - the following are just a few to name. 

1. The gift is not personal enough 

No matter how well you research your recipients, there’s always an element of uncertainty when choosing the perfect gift. While social media and professional interactions might offer glimpses into their interests, these insights don’t always reveal their true preferences. 

For example, someone who frequently shares cat videos online may not necessarily be a devoted pet owner—they might simply enjoy the playful charm of cats. Gifting them a cat-themed item, like a dish with whiskers, might not resonate as expected. 

This is why personalization is key in corporate gifting. Instead, offering choice-based gifting like digital gift cards or a diverse rewards catalog lets recipients pick what they truly value, making the gesture more meaningful. 

2. Administrative burden 

For a company with clientele or employee size of dizzying heights, the sheer gift volume puts a smoldering burden on its administration. 

Managing large-scale gifting can be overwhelming—tracking addresses, verifying details, purchasing, packaging, and shipping adds significant administrative strain. A smarter alternative? Instant digital gifting. 

With bulk digital gift cardsv, businesses can eliminate packaging, shipping hassles, and geographical restrictions. Digital rewards are sent instantly via email or SMS, ensuring seamless, eco-friendly, and time-saving gifting while maintaining a personal touch. No logistical headaches—just effortless, meaningful rewards delivered in a click. 

3. Missing the perfect timing 

The essence of gifting lies in timing—a late birthday gift or a delayed recognition reward loses its impact. To truly make moments special, pre-scheduling rewards ensures that gifts arrive exactly when they matter most. 

With automated reward scheduling, businesses can set up bulk gifts for birthdays, work anniversaries, and milestones in advance. Whether it’s a festival, an employee achievement, or a client appreciation day, scheduling ensures every gift is delivered on time, every time, preserving the excitement and meaning behind the gesture. 

4. Generic, repeated gifts 

The magic of gifting fades when the gifts become predictable. Year after year, companies rely on the same old sweets and chocolates, making festive gifting feel routine rather than special. When gifts lack variety, they risk blending into the background instead of making a lasting impression. 

Instead of generic gifts, offer a world of choices to choose from. You can include experiential rewards like travel and dining, to premium merchandise, wellness subscriptions, and learning opportunities.  

A curated marketplace like Xoxoday Plum, that offers 1M+ gifting options ensures that every recipient finds something personally meaningful and exciting, making gifting an experience they truly remember. 

5. Impersonal messaging 

The number of business gifts sent without thoughtful and pleasing personalization is alarming. A copy-to-all message that reads: 

“Your business is important to us!” 

It basically tells your client that your business is just as important as everyone else. It eliminates the heart from the gifting activity, which is to make the receiver feel special. Consider including personalized messages when sending gifts.  

6. Language barrier 

Ensuring a truly personalized gifting experience for a diverse, global workforce or clientele goes beyond just selecting the right gift—it’s about delivering it in a way that feels familiar and meaningful. Personalized messages in a recipient’s native language enhance emotional connection, but managing multilingual communication at scale can be resource-intensive. 

A smarter solution is leveraging a gifting platform like Xoxoxday Plum that supports multiple languages and currencies, eliminating the need for costly language experts while ensuring a seamless experience for recipients worldwide.  

With built-in localization, businesses can send gifts with personalized messages in multiple languages, while multi-currency support ensures smooth transactions and redemption, regardless of location. This not only saves time and resources but also makes every gift feel truly special and relevant. 

How to select the right corporate gifting company 

Choosing the right corporate gifting company is crucial for ensuring that your gifts leave a lasting impact, strengthen relationships, and align with your brand values. Here are key factors to consider when selecting a corporate gifting partner: 

1. Wide range of gift options 

A good gifting platform should offer diverse choices beyond traditional gifts. Look for a company that provides: 

• Digital gift cards across multiple brands 
• Experiential gifts (travel, dining, wellness, etc.) 
• Merchandise, tech gadgets, and premium corporate gifts 
• Wellness and learning-based gifts for a meaningful touch 

2. Global availability & multi-currency support 

If your company has a global workforce or client base, ensure the gifting provider supports: 

• International gift redemption 
• Multi-currency payments and conversions 
• Region-specific gifts to cater to local preferences 

3. Customization & branding 

Corporate gifting should reinforce your brand identity. Check if the gifting company allows: 

• Custom-branded gift cards and packaging 
• Personalized messages with multilingual support 
• The ability to add logos, brand colors, and themes to gifts 

4. Seamless integration with existing systems 

Managing corporate gifts manually can be a hassle. A top gifting platform should integrate with: 

• HRMS, CRM, and rewards management software 
• Payroll and expense management systems 
• APIs for automated gift distribution and tracking 

5. Instant & flexible gifting options 

Timing is crucial in gifting, whether for birthdays, work anniversaries, or performance-based incentives. Choose a provider that offers: 

• Scheduled gifting to automate rewards for special occasions. 
• Instant delivery via email, SMS, or WhatsApp. 
• QR codes and redemption links for hassle-free access. 

6. Data security & compliance 

When dealing with sensitive employee or client information, security is paramount. Ensure the gifting company complies with: 

• GDPR and other international data privacy regulations. 
• Secure payment processing and encrypted transactions. 
• Fraud protection and tracking mechanisms. 

7. Cost-effectiveness & ROI 

A well-structured gifting program should be cost-efficient while delivering high value. Evaluate: 

• Bulk gifting discounts for large orders. 
• Transparent pricing models with no hidden fees.. 
• Analytics to track the effectiveness of gifting campaigns. 

8. Customer support & user-friendly experience 

A corporate gifting platformv should be easy to use and backed by reliable customer support. Look for: 

• A user-friendly interface for effortless gift selection and delivery. 
• 24/7 customer assistance for troubleshooting. 
• Dedicated account management for large-scale gifting needs. 

10+best corporate gift ideas to choose from 

1. Digital gift cards 

Digital gift cards offer flexibility and convenience, making them a great option for corporate gifting. They allow recipients to choose what suits them best, ensuring a more meaningful experience. 

• Amazon gift card – Gives recipients the freedom to purchase from a wide range of products. 
• Uber or Lyft ride credits – A practical gift for professionals who travel frequently. 
• Food delivery vouchers – Swiggy, Zomato, DoorDash, Uber Eats for a meal of their choice. 
• Subscription services – Netflix, Spotify, Audible, or a wellness app subscription for entertainment and self-improvement. 
• Online learning gift cards – Udemy, Coursera, or LinkedIn Learning to encourage skill development and career growth. 

2. Luxury & lifestyle gifts 

For high-level executives, top clients, or valued employees, luxury gifts add an extra touch of sophistication and exclusivity. These gifts convey appreciation while maintaining a professional yet premium appeal. 

• Premium leather wallets or cardholders – A stylish yet practical gift that professionals can use daily. 
• Smartwatch – A blend of technology and health, suitable for business professionals. 
• Designer fragrances – Branded perfumes or essential oil sets for an elegant and personalized touch. 
• Personalized executive planner – Custom-made planners with initials and company branding for professionals to organize their schedules effectively. 

3. Experiential gifts 

Instead of material gifts, experiences create memories that last. Experiential gifting allows employees and clients to enjoy unique moments beyond the office setting. 

• Fine dining gift experience – Michelin-star restaurant vouchers or gourmet dining experiences make for an unforgettable culinary treat. 
• Adventure & outdoor experiences – Skydiving, hot air balloon rides, or city tours for thrill-seekers. 
• Wellness retreats & spa vouchers – A perfect gift for relaxation and rejuvenation. 
• Concert or sports event tickets – Let them enjoy their favorite artists or sports teams live. 
• Hotel staycation or travel vouchers – A refreshing weekend getaway to recharge. 

4. Wellness & self-care gifts 

Encouraging wellness and self-care in the workplace fosters a healthier and more productive team. These gifts are perfect for promoting relaxation, mindfulness, and an overall better work-life balance. 

• Noise-canceling headphones – Helps block distractions and enhance focus at work. 
• Smart water bottle – Hydration tracking bottle for maintaining good health. 
• Fitness & gym memberships – Encourages employees and clients to prioritize physical well-being. 
• Organic tea & coffee set – Premium blends that offer a calming and refreshing break. 
• Aromatherapy & essential oil diffusers – A great way to create a peaceful workspace or home environment. 

5. Sustainable & eco-friendly gifts 

With companies shifting towards sustainability, eco-friendly gifts are an excellent way to show corporate responsibility while promoting conscious consumerism. These gifts align with sustainability goals while making a positive impact. 

• Plantable stationery – Notebooks and pencils that grow into plants after use. 
• Reusable coffee cups & water bottles – Stainless steel or bamboo alternatives to reduce plastic waste. 
• Solar power banks – An eco-friendly and practical solution for charging devices on the go. 
• Sustainable home décor – Handcrafted items from recycled materials, adding an aesthetic and sustainable touch. 
• Tree plantation in their name – A meaningful contribution to the environment, reinforcing a company's commitment to sustainability. 

6. Charity & donation-based gifts  

For companies that prioritize social responsibility, donation-based gifts align with their values and create a meaningful impact. 

• Charity gift cards – Let recipients donate to a cause of their choice. 
• Sponsoring a child’s education – A long-term impact gift that contributes to a child’s future. 
• Meal donation programs – Support feeding programs for underprivileged communities. 
• Healthcare & vaccination sponsorships – Provide medical aid to those in need. 

Final thought 

Corporate gifting is more than just an exchange of presents; it’s a powerful tool to enhance relationships, motivate employees, and build goodwill with clients and partners. Whether it's digital gift cards for ease, luxury gifts for executives, experiential rewards, wellness gifts, sustainable options, or charity-based contributions, thoughtful gifting ensures a meaningful and lasting impact. 

Investing in the right corporate gifts strengthens connections, creates positive brand associations, and fosters a culture of appreciation and engagement.