7 Reasons Why Gift and Promotional Items Are Essential for Your Business

Gift and promotional items are not just nice gestures to show appreciation to your customers, employees, or partners. They are also powerful marketing tools that can help you increase brand awareness, loyalty, and sales. In this article, we will explore how gift and promotional items can benefit your business and what are some of the best practices to follow when choosing and distributing them.

Key Takeaways

Gift and promotional items are essential for your business as they can help you increase brand recognition, goodwill, loyalty, traffic, sales, reputation, credibility, impression, differentiation, referrals, and word-of-mouth.

Gift and promotional items are cost-effective and measurable forms of advertising that offer a high ROI compared to other media.

Gift and promotional items should be chosen and distributed according to some best practices that ensure

Gift and promotional items are any products that you give away for free or at a low cost to promote your business. They can range from pens, mugs, and calendars to t-shirts, bags, and gadgets. The key is to choose items that are relevant to your brand, useful to your recipients, and memorable to your prospects.

Here are some of the reasons why gift and promotional items are essential for your business:

1. They increase brand recognition.

Gift and promotional items can expose your brand name, logo, and message to a large audience, especially if they are used or displayed frequently. According to a study by the Advertising Specialty Institute (ASI), 85% of consumers remember the advertiser who gave them a promotional product. Moreover, 58% of consumers keep a promotional product for one year or longer, which means more impressions for your brand.

2. They generate goodwill and loyalty.

Gift and promotional items can make your customers, employees, or partners feel valued and appreciated, which can boost their satisfaction and retention. According to the same study by ASI, 83% of consumers said they are more likely to do business with a brand that gave them a promotional product. Additionally, 79% of employees said they feel more appreciated when they receive a gift from their employer.

3. They drive traffic and sales.

Gift and promotional items can attract new customers and encourage repeat purchases by offering incentives or rewards. For example, you can use gift cards, coupons, or free samples to entice people to visit your website or store. You can also use loyalty programs, referral programs, or contests to motivate people to buy more or recommend your products or services to others.

4. They enhance your reputation and credibility.

Gift and promotional items can demonstrate your professionalism, quality, and generosity, which can improve your image and reputation in the market. By giving away high-quality products that reflect your brand values and standards, you can impress your recipients and make them trust you more. By giving away products that support a social cause or a green initiative, you can show your social responsibility and environmental awareness.

5. They create a lasting impression and differentiation.

Gift and promotional items can help you stand out from your competitors and create a lasting impression on your target audience. By choosing unique, creative, or personalized products that match your brand personality and message, you can capture the attention and interest of your recipients and make them remember you more. By choosing products that solve a problem or fulfill a need for your recipients, you can add value and relevance to your brand.

6. They increase referrals and word-of-mouth.

Gift and promotional items can encourage your customers, employees, or partners to spread the word about your brand and recommend it to others. According to a study by Nielsen, 92% of consumers trust recommendations from people they know more than any other form of advertising. By giving away products that are shareable, visible, or viral, you can increase the chances of generating positive word-of-mouth and referrals for your brand.

7. They are cost-effective and measurable.

Gift and promotional items are one of the most affordable and effective forms of advertising, as they offer a high return on investment (ROI) compared to other media. According to ASI, the average cost per impression (CPI) of a promotional product is $0.007, which is lower than TV ($0.019), radio ($0.005), or print ($0.019). Moreover, gift and promotional items are easy to track and measure using codes, coupons, surveys, or analytics tools.

As you can see, gift and promotional items are essential for your business as they can help you achieve various marketing goals and objectives. However, not all gift and promotional items are created equal. To ensure that you get the most out of them, you need to follow some best practices when choosing and distributing them.

Here are some tips to help you make the best use of gift and promotional items:

Know your audience. Before you choose any gift or promotional item, you need to know who you are giving it to, what they want or need, what they like or dislike, and how they will use it.

Align with your brand. The gift or promotional item should match your brand identity, values, message, and goals. It should also be consistent with your other marketing materials and campaigns.

Choose quality over quantity. The gift or promotional item should be durable, functional, attractive, and safe. It should also meet the standards and regulations of the industry or country where you operate.

Be creative and original. The gift or promotional item should be unique, memorable, and relevant. It should also reflect your personality and style and showcase your creativity and innovation.

Personalize and customize. The gift or promotional item should be tailored to your recipient’s preferences, needs, or interests. It should also include your brand name, logo, message, or contact information.

Add value and utility. The gift or promotional item should provide a benefit or solution to your recipient. It should also be useful, practical, or enjoyable for them.

Be timely and appropriate. The gift or promotional item should be given at the right time and occasion, such as holidays, birthdays, anniversaries, events, or milestones. It should also be suitable for the culture, customs, and etiquette of your recipient.

Be generous and grateful. The gift or promotional item should be given with a sincere and heartfelt expression of gratitude and appreciation. It should also be accompanied by a card, note, or message that conveys your thanks and recognition.

By following these tips, you can ensure that your gift and promotional items are well-received and appreciated by your recipients, and that they generate the desired results for your business.

Tips

Use gift and promotional items as part of a comprehensive marketing strategy that includes other channels and tactics.

Use gift and promotional items to complement your products or services rather than to replace them.

Use gift and promotional items to target specific segments of your audience rather than to reach everyone.

Use gift and promotional items to communicate a clear and consistent message that aligns with your brand identity and goals.

Use gift and promotional items to create a positive emotional connection with your recipients rather than to manipulate them.

Global Trends in Gift and Promotional Items Industry

The gift and promotional items industry is a large and diverse sector that encompasses a wide range of products, services, and markets. According to Gitnux, the global gift industry was valued at approximately 77.15 billion U.S. dollars in 2021, and the U.S. gift industry is expected to grow at a CAGR of 5.2% from 2020 to 2025. The promotional product industry, which includes items such as apparel, writing instruments, bags, and tech accessories that are branded with logos or messages, is also a significant part of the gift sector. According to Quality Logo Products, the promotional product industry has an estimated value of $23.3 billion in 2020.

Corporate Gifting: A Key Segment

One of the key segments of the gift and promotional items industry is corporate gifting, which refers to the practice of giving gifts to employees, clients, partners, or prospects as a way of expressing appreciation, recognition, or goodwill. Corporate gifting can have various benefits for businesses, such as enhancing employee engagement, loyalty, and productivity; strengthening customer relationships and retention; increasing brand awareness and reputation; and generating referrals and leads.

According to GiftUpApp, the corporate gifting market in the U.S. was worth about 10 billion U.S. dollars in 2020. The most popular type of corporate gift is gift cards, which make up 74.2% of employee gifts. However, personalized gifts are also highly preferred by recipients, as 73% of them said they would rather receive a personalized gift than a generic one. Personalized gifts can include items that are customized with the recipient’s name, initials, photo, or message; or items that are tailored to the recipient’s preferences, interests, hobbies, or personality.

Seasonal and Online Gifting: Emerging Trends

Another important aspect of the gift and promotional items industry is the seasonal variation in demand and sales. According to Industry u-gib com report US Gift Industry Statistics, Christmas season accounts for 60% of the annual gift market. Other occasions that drive gift sales include Valentine’s Day, Mother’s Day, Father’s Day, birthdays, anniversaries, weddings, graduations, and more. Seasonal gifting can also influence the choice of products and themes for promotional items, as businesses may want to align their marketing campaigns with the relevant holidays or events.

A major trend that is shaping the gift and promotional items industry is the rise of online gifting platforms and services. Online gifting allows consumers to browse, purchase, and send gifts to their recipients without leaving their homes or offices. Online gifting can also offer more convenience, variety, personalization, and delivery options than traditional brick-and-mortar stores. According to Roots Analysis Blog, online gifting market in India is expected to reach USD 84 billion by 2024. Some of the factors that are driving the growth of online gifting include increasing internet penetration, smartphone usage, e-commerce adoption, disposable income, urbanization, and social media influence.

Frequently Asked Questions

Q: What are some of the most popular gift and promotional items?
A: Some of the most popular gift and promotional items are pens, mugs, t-shirts, bags, hats, calendars, USB drives, power banks, water bottles, notebooks, keychains, magnets, stickers, and lanyards.

Q: How can I measure the effectiveness of my gift and promotional items?
A: You can measure the effectiveness of your gift and promotional items by using various methods, such as codes, coupons, surveys, feedback forms, testimonials, reviews, referrals, sales data, website traffic, social media engagement, or analytics tools.

Q: How can I find a reliable supplier for my gift and promotional items?
A: You can find a reliable supplier for your gift and promotional items by doing some research online or offline. You can look for reviews, ratings, testimonials, portfolios, samples, certifications, awards, or referrals from other customers or businesses. You can also contact the supplier directly and ask for a quote, a sample, a proof, or a guarantee.

Q: How can I avoid common mistakes when using gift and promotional items?
A: You can avoid common mistakes when using gift and promotional items by following some guidelines. For example:

Do not choose cheap or low-quality products that can damage your brand image or reputation.
Do not choose irrelevant or inappropriate products that can offend or annoy your recipients.
Do not choose generic or boring products that can be easily forgotten or ignored.
Do not choose oversized or heavy products that can be inconvenient or costly to ship or store.
Do not choose products that violate any laws or regulations in your industry or country.

Q: How can I make my gift and promotional items more eco-friendly?
A: You can make your gift and promotional items more eco-friendly by choosing products that are made of natural, organic, recycled, biodegradable, or reusable materials. You can also choose products that support a social cause or a green initiative. You can also reduce the packaging waste by using minimal or recyclable packaging materials.

References:

http://cdn.ppai.org/NR/rdonlyres/8C233CED-39BD-4F9D-A708-E97C60A9732C/0/2008SalesVolume.pdf

http://www.promotionproducts.com.au/2013/The-Exceptional-Power-of-Promotional-Products.pdf

http://www.asicentral.com/asp/open/aboutASI/HistoryOfAsi/index.aspx

https://www.asicentral.com/news/web-exclusive/january-2019/2019-ad-impressions-study/

https://www.nielsen.com/us/en/insights/article/2012/consumer-trust-in-online-social-and-mobile-advertising-grows/

https://www.qualitylogoproducts.com/promo-university/what-is-a-promotional-product.htm

https://www.business2community.com/marketing/10-reasons-promotional-products-effective-marketing-tools-01959306

https://www.outboundengine.com/blog/promotional-products-marketing/