Corporate Gifts Remain Popular Rewards

 

For the balance of 2021 and probably into 2022 as well, Incentive Magazine’s Gift Survey reveals that reward planners will continue to offer merchandise in lieu of group travel to motivate performance. According to the Incentive Research Foundation, the use of gifts as a motivational reward skyrocketed by 68 percent in 2020, and that trend is expected to continue. 

There is a lingering uncertainty about the pandemic's effect on travel and some incentive travel programs are still being booked, but many companies have preferred to use gifts instead.

 What are the most common problems when using merchandise gifts?

• merchandise was not always available when needed according to more than 75 percent of respondents 
• more than half of those polled cited frustrating reward delivery delays to recipients.

 These problems can be expected to continue, as manufacturing delays remain a global issue.

 Which gifts are most commonly given?

• 61% of respondents favored using apparel, the vast majority of which was shirts with company identified logos.  Past surveys have indicated that while employees enjoy logoed apparel items, many would prefer a choice of awards
• 59% utilize gift cards or gift card systems that allow the winner to order any of the most popular gift cards in the country, and thus use them to get what they really want, not what someone thinks they want.
• 51% use electronics and food-and-beverage items were used by 44 %.
• Luggage and leather items, sporting goods, outdoor equipment and watches were among other prizes preferred by more than 20 percent of respondents.

 How are rewards being used?

• More than two-thirds of incentive professionals use rewards to recognize employees.
• 55% give awards to thank employees for their performance
• 50% use rewards to thank loyal customers
• 50% use them to build morale and increase job satisfaction
• 43% use them as award to motivate increased sales.

 It is always difficult to pick just the right award, and some would suggest that it can’t be done.  There are too many variables and too much diversity of recipients to get it right.  Many planners voiced frustration about the dearth of new gift ideas.  When you offer a gift each year, it's hard to come up with something new!

 One planner summed up why gifts make great rewards. "Choosing the right gift leaves long-lasting positive impressions and memories — and it generates great PR buzz long after it's given!"

While that is as true as true can be, no one can really tell you how to choose that right gift that leaves all those long-lasting memories.  There is a lot of justification to have a system where the recipients can choose for themselves.

How to Design a Great Corporate Gift Program

Can you think of the perfect business gift?  If it is the perfect gift for you, will it be a perfect gift for others?  Have you ever received the perfect business gift?  When you receive gifts what do you do with them?  Put them on display, use them if they have utility value, put them in a drawer, consume them, immediately put it into the re-gift pile, or worse, give it to someone else, relegate it to the yard sale box, or worse yet just throw it away?

The problem is that giving a meaningful business thank you gift to an employee, a key vendor or a client, one that is truly appreciated, isn’t as easy as it may have been.  We’ve seen lots of them come and go over the years, some stay gone, some reappear after a time, some seem to be always likeable and come around every year.  Many just get set aside and forgotten, or worse

But it’s the thought that counts, right?  You get pluses for just giving the gift, regardless of how it is received by the recipient.  You hear about the ones they liked, not so much for the ones they didn’t.  Regardless, you got it done; it’s off the checklist until you have to go through it next year.  We’ve all been in that predicament; we all go through endless searching for just that one gift that will be a hit.  We all do because we want to thank our most valued people over the holidays.

After going through the process for over 40 years, I am convinced that you really can’t go wrong with what you choose use as a gift, (well, maybe some are ridiculous) as long as it is given with true appreciation and you show that appreciation in the quality (not necessarily high cost) communication, making it something personal, and giving a choice.

Believe it or not, according to Incentive Magazine, the largest singletype of business gifts by over 65% are gift cards, and of those, the most popular gift card systems that allow the recipient to choose from the hundreds of gift cards available in the country.  And as about 50% of the business gifts given are under $50, gift cards are ideal and very cost effective.

Just remember, that in business one thing has not changed: the value of recognition of people for a job well done. No matter how fast technology races us along, it will never replace good relationships. People will always remain the foundation of any successful business.

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Corporate Gift Budget Research

End of the year research conducted by Incentive Magazine shows that businesses are spending more on corporate gifts and giving them on more occasions.  Gift cards consistently show the highest usage by over 50% higher than the next closest category of corporate gifts used.  Customers and employees remain the most mentioned gift recipients.

Obviously when the economy is solidly in the “improved” column from the last few years of showing relatively flat growth, businesses are spending more on corporate gifts. Interesting, the number of respondents who say their firms give out the most expensive gifts are up significantly.

Some of the data from this report is shown here:

How Much Do You Spend on Average for Corporate Gifts?  
                                       

$$ Per Recipient	2016	2015
Less than $25	19.5%	27.2%
$25 to $49	23.6%	23.2%
$50 to $99	26.6%	23.6%
$100 to $299	17.9%	19.9%
$300 to $999	6.2%	4.8%
$1000 & up	6.2%	1.3%

How Have Your Budgets Changed Over the Past Two Years?

Budget Change	2016	2015
Spending more	27.4%	20.6%
Spending less	21.0%	30.4%
Spending the same	51.6%	49.0%

Which Type of Corporate Gift Do You Use?

Type of Gift	2016	2015
Gift Cards	67.7%	67.8%
Apparel	40.0%	38.8%
Office Accessories	36.4%	36.8%
Electronics	34.4%	32.2%
Food	32.8%	37.0%
Writing Instruments	25.1%	29.5%
Books, Movies, Music	22.6%	26.4%
Leather Goods	22.1%	15.9%
Wine & Spirits	21.5%	25.6%
Watches	19.5%	14.5%

Who Are Your Corporate Gift Recipients

Recipients	2016	2015
Customers	67.18%	68.3%
Employees	66.15%	69.1%
Prospects	16.92%	19.3%
Suppliers	12.31%	22.6%
Other	6.15%	8.6%
Stockholders	4.1%	5.4%

For more information on AwardSafety products or services or other white papers please contact us at awardsafetyinfo@cox.net