Use Gift Cards and Other Corporate Gifts In Brand Development

Gift giving is an old trend; historians have found evidence of ancient tribal leaders giving gifts to other tribes. In everyday life, we give gifts to our friends and family to strengthen our relationships and to be empathetic. Although corporate gift giving looks like a business move (and it is) but the purpose of gift giving in personal life and in corporate world is exactly the same. Businesses have been using this tactic for decades and even though almost everyone is doing the same thing, this strategy is still effective.


corporate gift giving using gift cards


Why Gift Cards Are Effective Marketing Strategy?

We all get gift cards from companies like Apple, Amazon and others occasionally and many of us wonder “what’s in that for the company?” I meant how Apple would benefit by giving me a free iTunes gift card of $20 worth? How Amazon would benefit from giving a $15 gift card considering I don’t buy lots of things from them? How a company would benefit from giving me a coupon to get free shipping on the first 5 items I’d buy?

When To Use Gift Cards

I got the same questions in my mind when I didn’t know how corporate gifts in Singapore culture works. In the case of coupon, it is pretty obvious; to get the free shipping, you need to buy the item first. However it is a bit tricky in case of free gift cards; have you ever saw someone entering a store with $20 worth of gift card and buy things within that $20 limit? I haven’t. Just like coupons (that encourage users to buy things and get discount either on the price or via free shipping) the purpose of gift cards is to bring users inside the store.

In other words, by giving a $20 or $25 gift card, companies sell stuff worth hundreds of dollars and that’s how they use gift cards for increasing their sales. Unfortunately, small businesses cannot possibly afford this kind of marketing strategies so they need to opt for cost efficient yet effective solutions. And that’s where corporate gifts and promotional items help businesses to increase their customer base.

Should I Use Gift Cards Or Promotional Items?

It is not fair to compare gift cards with promotional items because gift cards are considered and treated like real money. For example, I got Zappos gift card worth $35 few months ago; I once bought a pair of shoes from their online store so that’s why they see me as a potential customer. However, I have moved to other brands and I had no intentions to buy something from them just because I got $35 discount. So, instead of throwing out that worthless gift card, I gave it to a friend who buys from Zappos.

Quality Not Quantity That Counts

That does not happen with promotional items unless they provide high value and have a high practicality factor. One of the biggest mistakes businesses make while using gift giving as a marketing strategy is preferring quantity over quality; this is not an effective approach. It is better to give high quality corporate gifts to fewer people rather than giving lots of gifts to lots of people.

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