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Every client connection is significant, whether you work for a small firm or a large multinational corporation. According to McKinsey, organizations with strong brands outperform their competitors by 73%.
While there are numerous ways to express gratitude and care, gifting clients is a particularly effective method of acknowledging their trust. In fact, Research by Zendesk has shown that high customer satisfaction leads to greater retention, increased lifetime value, and a positive brand reputation.
Data suggests that a considerable portion of businesses attribute improved customer loyalty to gifting strategies. This blog will explore various approaches to express appreciation for clients through thoughtfully selected gifts.
What do we understand by gifts for customers?
Customer gifts serve as a strategic tool for fostering strong relationships and enhancing customer satisfaction. By expressing gratitude and appreciation, businesses can cultivate loyalty and advocacy among their customer bases.
The benefits of customer gifting are manifold. If the right gift is sent, then it can:
- Strengthen customer relationships by demonstrating genuine care and consideration.
- Create emotional connection can lead to increased customer satisfaction and loyalty,
- Be a reminder of the value your solution adds to the market,
- and lastly, influence the customer's decision to choose the company.
How can corporate gifting improve customer retention rates?
A study has revealed that 35% of businesses had a dedicated budget for corporate gifting to expand their networking. This underscores the importance of corporate gifting in a significant way.
1. Strengthening relationships
When customers feel appreciated, they are more likely to remain loyal and continue their business with the company. A study by PPAI found that 79% of recipients were more likely to do business with a company after receiving a branded gift, indicating that corporate gifting can effectively foster goodwill and encourage repeat business.
2. Increasing loyalty
According to a report by Giftagram, companies that utilize gifting strategies experience a 47% increase in customer loyalty. This increase in loyalty translates to higher retention rates and a more stable revenue stream for businesses.
3. Enhancing brand recall
89% of consumers can remember the branding of a promotional product they received in the past two years. This heightened awareness can lead to increased customer engagement and retention, as clients are more likely to think of the brand when making purchasing decisions.
4. Boosting repeat purchases
Gifting can encourage customers to make repeat purchases. Research indicates that customers who receive gifts are 64% more likely to make a repeat purchase within three months compared to those who do not receive gifts. This demonstrates the direct correlation between gifting and increased sales activity.
5. Long-term value
Customers who receive gifts can also have a 25% higher lifetime value than those who do not, suggesting that corporate gifting is an effective strategy for maximizing the overall value derived from customer relationships over time.
5 Best experience gifts for customers
5 best experience gifts for customers:
1. Learn To Fly in New York
The Learn to Fly experience in New York is an exhilarating adventure for all! After a safety briefing, you'll take the pilot's seat in a Piper PA-28-181 Archer II and get ready for take-off. With guidance from your knowledgeable and experienced instructor, you'll go through the pre-flight inspection and prepare the plane for departure.
2. Sunset Sailing Cruise
A memorable adventure with Florida's City sailing tour, offering a unique view of the Big Apple's iconic landmarks. Enjoy the breeze and sunshine as you sail across the harbor. Opt for a public sailing tour or a private charter for a more intimate experience.
3. The Original Immersive Van Gogh Las Vegas Tour
Discover Vincent Van Gogh's art like never before at the ORIGINAL Immersive Van Gogh Exhibit, located at the Shops at Crystals next to ARIA Resort & Casino in Las Vegas. Immerse yourself in a captivating world where Van Gogh's masterpieces come to life in a truly unforgettable experience.
4. National Parks Tour from Las Vegas to San Francisco
Experience an exciting 4x4 Jeep adventure through Monument Valley, immerse yourself in the rugged Wild West, and explore the stunning Utah landscapes of Zion and Bryce. Hike through Arches and Canyonlands, and venture into the Grand Canyon's profound depths before returning to Las Vegas. Continue your journey with a guided tour of Death Valley, enjoy the beauty of Yosemite, and wrap up with a city tour of San Francisco.
5. National Parks Pass
A National Parks Annual Pass makes an exceptional gift, encouraging exploration and well-being. Perfect for avid hikers, campers, and outdoor enthusiasts, it provides access to a year of adventures. According to research from the Yale School of Environment, spending time in nature offers substantial cognitive and emotional benefits. This thoughtful gift not only promises memorable experiences but also supports physical and mental well-being through a deeper connection with the natural world.
6 Gifts cards to share with customers
Here are 6 gift cards to share with customers:
1. Travel gift cards and vouchers
Offer customers the opportunity to explore new destinations and create unforgettable memories with travel gift cards and vouchers. These can be used for booking flights, accommodations, or vacation packages, making them the perfect gift for anyone with a passion for travel and adventure.
2. Entertainment/OTT gift cards and vouchers
Provide access to a world of entertainment gift cards and vouchers. Customers can enjoy their favorite movies, TV shows, and exclusive content on popular streaming platforms. These gift cards are ideal for entertainment enthusiasts who love to stay updated with the latest releases.
3. Grocery gift cards and vouchers
Simplify your customers' shopping experience with grocery gift cards and vouchers. These can be redeemed at various supermarkets and grocery stores, allowing recipients to purchase everyday essentials, fresh produce, and household items with ease.
4. Health and wellness gift cards
Promote a healthy lifestyle by offering health and wellness gift cards and vouchers. These can be used for gym memberships, spa treatments, fitness classes, or purchasing health supplements. They are perfect for those who prioritize their well-being and self-care.
5. Fashion & lifestyle gift vouchers
Elevate your customers' style with fashion and lifestyle gift vouchers. These can be used at popular clothing stores, boutiques, and online retailers, allowing recipients to update their wardrobe with the latest trends and accessories. They are an excellent choice for fashion-conscious individuals.
6. Food & restaurant gift vouchers
Delight your customers with food and restaurant gift cards. These can be redeemed at a variety of restaurants, cafes, and eateries, offering a wide range of dining experiences. From fine dining to casual meals, these vouchers cater to food lovers who enjoy exploring new culinary delights.
5 Thoughtful gifts for customers to appreciate them
Thoughtful gifts for customers to appreciate them are as follows:
1. Xoxo links
You can choose a custom reward, pick the person you want to reward, and instantly get a redemption code they can use right away. No more hassle, just easy gifting!
With Xoxo links, you can experience the magic of effortless gifting. It's perfect for any occasion, whether you want to say thank you, celebrate a win, or just show someone you appreciate them.
2. Customized gift baskets
Curate personalized baskets filled with gourmet treats, high-quality snacks, or specialty items that cater to your customers' tastes. Adding a personal touch makes the gift more meaningful and memorable.
3. Premium stationery sets
Elegant stationery such as personalized notebooks, high-quality pens, and stylish organizers offer a blend of practicality and sophistication, enhancing both their professional and personal lives.
4. Experience vouchers
Provide vouchers for unique experiences like dining at a top restaurant, attending a cultural event, or enjoying a relaxing spa day. Such experiences create lasting memories and demonstrate your appreciation for their support.
5. Eco-friendly products
Opt for sustainable gifts like reusable water bottles, eco-friendly tote bags, or solar-powered gadgets. These items reflect your commitment to environmental responsibility and show that you value their patronage.
6. Personalized tech gadgets
Consider tech gifts such as custom-engraved power banks, wireless chargers, or high-quality headphones. These modern and practical gifts are a great way to convey your thanks while catering to their tech-savvy side.
Case studies
1. Xero achieves a 25% increase in conversion rates with corporate gifting
Founded in 2006 in New Zealand, Xero is a cloud-based accounting software platform for small businesses, boasting over 3 million subscribers globally. Xero provides real-time financial data access and an ecosystem of over 1,000 third-party apps and 300+ connections to banks and other financial partners.
In 2020, Xero was recognized as a leader in SaaS and cloud-enabled small business finance and accounting by IDC MarketScape. Forbes named Xero the World’s Most Innovative Growth Company in 2014 and 2015.
Challenges: The UK government’s Making Tax Digital (MTD) initiative required businesses to use compatible software for tax management, presenting Xero with a growth opportunity in the UK market. However, Xero faced several challenges:
- Rapid growth: Needed effective strategies and promotions to capture market share.
- Inventory management and distribution: Manual sending of physical gifts led to stock management and high distribution costs.
- Logistics costs: High upfront costs for bulk orders and delivery coordination.
- Limited customer experience: Lack of freedom for customers to choose their own rewards.
- Lack of rewarding technology: Difficulty measuring ROI from physical gifting.
Solution: Xero partnered with Xoxoday to leverage its robust and unified reward platform, featuring:
- Global reward marketplace: Offering 21,000+ reward choices across 100+ countries.
- Link-based rewarding: Automating reward distribution through personalized links.
Key results
- Customer acquisition: A referral campaign rewarded customers with £50 per successful referral, building a pipeline of 1,900 customers in 4 months and increasing conversion rates by 25%.
- Cost reduction: Lowered customer acquisition costs and optimized marketing budgets with value-based pricing—only charging for redeemed rewards.
- Enhanced customer experience: Instant digital rewards and a diverse reward portfolio improved customer satisfaction and advocacy.
- Operational efficiency: Streamlined onboarding process and responsive customer support.
Future plans
Xero aims to expand Xoxoday’s reward system to North America, the Middle East, and Africa, and introduce rewards in its subsidiary, Planday, by 2022. Additionally, Xero plans to integrate rewards into other marketing verticals, such as market research surveys and demand generation.
This partnership with Xoxoday has empowered Xero to achieve a 25% increase in conversion rates and significantly reduce customer acquisition costs, setting the stage for continued growth and innovation in customer engagement strategies.
2. Samco Securities Achieves 25% Increase in Conversion Rates Using Xoxoday’s Reward Platform
Samco Securities, a leading discount stock broker in India, leverages technology to provide stock market participants with the tools they need to consistently outperform the market. Registered with major exchanges like BSE, NSE, MCX, MCX-SX, and NCDEX, Samco aims to optimize financial performance for its clients.
Challenges: Samco faced several challenges as it aimed for rapid growth:
- Rapid Growth: Needed superior strategies and promotions to capture market share quickly.
- Inventory Management and Distribution: Manual promotional campaigns with physical gifts faced issues with stock management, distribution, and high costs.
- Logistics Costs: High upfront costs and complex delivery coordination for physical gifts.
- Limited Customer Experience: Customers had limited choices for gifts, restricting their experience.
- Lack of Rewarding Technology: Difficulty in measuring ROI from physical gifting due to the absence of technology-led rewarding solutions.
Solution: Samco implemented Xoxoday’s unified reward platform, featuring:
- Global Reward Marketplace: 21,000+ reward choices across 100+ countries.
- Link-based Rewarding: Automated distribution through personalized reward links.
Key results
- Customer acquisition: Referral campaigns rewarded customers with a £50 link per successful referral, building a pipeline of 1,900 customers in 4 months and increasing conversion rates by 25%.
- Cost reduction: Lowered customer acquisition costs and optimized marketing budgets with value-based pricing—only charging for redeemed rewards.
- Enhanced customer experience: Instant digital rewards and a diverse reward portfolio improved customer satisfaction and advocacy.
- Operational efficiency: Streamlined onboarding process and responsive customer support.
Future plans
Samco plans to expand the usage of Xoxoday’s rewards system in North America, the Middle East, and Africa. With Xoxoday’s global catalog and multi-currency rewards, Samco can extend its rewards as they scale. Additionally, Samco aims to introduce rewards and incentives into other marketing verticals, such as market research surveys and driving demand generation.
By partnering with Xoxoday, Samco has reduced customer acquisition costs by 25%, increased conversion rates, and significantly improved customer experience, positioning the company for continued growth and market leadership.
Key learning from above case studies
Key learning from case studies:
- Automated rewards: Xero achieved a 25% increase in conversion rates by automating its customer referral program through Xoxoday's platform, emphasizing the importance of streamlining processes for efficiency.
- Diverse reward options: The implementation of a global reward marketplace with over 21,000 choices allowed Xero to cater to various customer preferences, enhancing engagement and satisfaction.
- Customer experience: Xero focused on improving customer experience by providing instant access to rewards and a straightforward onboarding process, contributing to a 20% year-on-year growth.
- Market expansion: The introduction of the Making Tax Digital initiative in the UK presented an opportunity for Xero to expand its market presence, highlighting the need to adapt to regulatory changes.
- Referral program enhancement: Samco utilized Xoxoday's platform to enhance its referral program, demonstrating the effectiveness of referral incentives in driving customer acquisition and retention.
- Incentivization strategy: By offering diverse rewards, Samco attracted new customers through referrals, showcasing the significance of appealing incentives in referral marketing.
Make a lasting impression with Xoxoday’s unique gift experiences
Xoxoday moves beyond traditional, impersonal gifts by offering a curated selection of remarkable experiences. Xoxoday’s gifting solutions provide a more personalized and impactful way to show appreciation to employees, clients, or partners.
This approach not only boosts employee engagement and strengthens client relationships but also ensures the gift truly resonates and leaves a lasting impression.
Conclusion
Gifting is not just about giving items; it's about creating memorable experiences and showing genuine appreciation. By moving beyond generic presents and embracing unique experiences, you can make a lasting impression on your clients and partners.
Whether it's through exhilarating adventures, exclusive events, or practical gift cards, Xoxoday's solutions ensure that your gestures resonate deeply and effectively.
