4 benefits of sending employee & client holiday gifts
Is your company debating what to do for holiday gifts this year? Is your company debating whether or not you should send gifts at all this year?
With economic uncertainty, we know teams may be discussing eliminating their holiday gifting budgets for their employees and clients. Even if your budget is less than last year, it’s important to make an intentional and thoughtful demonstration of your genuine appreciation and recognize your teammates and customers around the holidays. Here are four benefits to giving business holiday gifts.
1. Makes recipients feel valued
63% of employees feel underappreciated by their employers and nearly 50% have left jobs because of that feeling. Customers are similar in the sense that feeling underappreciated is the top reason they will switch products and services. There are many ways to ensure your teammates and clients feel appreciated and valued, and sending holiday gifts is a good start.
As you’re preparing to send gifts this holiday season, consider how you will make each recipient feel valued. Rather than order gifts in bulk, consider giving each person the opportunity to choose a gift that is meaningful to them. When you do this, you’re showing that they’re valued for their individuality, opening up the opportunity to learn more about them, and ensuring they receive a gift they’ll actually use (versus throwing away).
2. Increases retention & loyalty
When you show appreciation and recognition toward your employees and customers, it helps increase retention and loyalty. From an employee perspective, this is key as 73% are considering leaving their job and there’s an anticipated 20% increase in employee turnover expected this year. From a customer perspective, the average company will lose 23%–30% of their customers due to a lack of loyalty each year, which can greatly impact that company’s revenue and growth.
Demonstrate your appreciation of your employees and clients by including a personal note when you send your holiday gifts. By personalizing the send, you’re able to express the gratitude you have for their continued engagement and loyalty to your company. We’ve made it easier by supplying a couple of gift send templates you can personalize to help you get started.
3. Deepens relationships
Businesses are forged based on the relationships built. Successfully building relationships with employees and customers can increase retention. By retaining employees, you can save money from having to recruit and onboard new employees. While the cost varies by industry and company, it can cost your company as much as 50%-60% of a new hire’s salary to recruit and onboard them. By retaining your customers, you can increase your profits. A 5% increase in customer retention can increase your profits by 25% to 95%.
By sending holiday gifts, you can help deepen the relationships you’ve started building with your recipients. When you send the gift of choice, you have the added benefit of gaining insight into what matters to your employees and customers.
With a tool like Loop & Tie, you can see what gift your recipients select, allowing you to learn more about them. For example, if one of your employees redeems a gift for a new kitchen gadget, you can bond with them over new recipes you’ve both been trying out. Or, if your customer redeems a gift to donate to a charity, you can learn about causes important to them and bond over that. Not only does the act of giving a gift help you deepen your relationship, but the more you learn about them, the more you're able to connect on a personal level.
4. Provides additional touchpoint for your brand
Once your employees and customers receive a gift from you, every time they use said gift, they’re likely to think of you. This is true for non-branded gifts, as well. So while you may give a gift in December, if your recipients selected something they can continue to use over time, they’ll still be thinking about you throughout the next year.
Being top-of-mind of your customers can help increase their loyalty and increase their spending with you. Continuing to evoke positive feelings in connection with your brand amongst employees can help increase engagement and productivity.
We know how impactful gifts can be year-round, especially during the holidays. Send a gift now to start seeing these benefits among your employees and clients.