Pros:
1. Bridging divides
Sometimes, you might not regularly interact in person with every client but it depends on your industry. No matter where your company is located, you may send a client a present that will help them feel connected to you even when they are thousands or even hundreds of miles away.
2. Reinforcing your brand
Businesses that cherish their brands have yet another chance to demonstrate to customers that they are strongly committed to building long-term connections. Some services that offer business gifts let you include a logo. Show how kind you are by putting your client’s logo on the present rather than your own. For example, let’s say your corporate gift is a vacuum flask, you can print a small corporate logos somewhere on the flask.
3. Keeps Relationships Open
You may have customers who are at various stages of the purchasing process and others who you stay in touch with for future business. Sending a gift opens the channels of communication and presents you with new chances to conduct business following the new year.
4. Sets You Apart from Competitors
There’s a strong likelihood that your client does business with other businesses, but not all of them will extend a meaningful holiday present to your client. Businesses that people are familiar with and like typically receive more business. By standing out from the pack, you might earn the right to be a partner that people prefer.
Cons:
1. They can be construed as bribery
While giving gifts is a traditional way to show appreciation, it is also linked to reciprocity. As a result, an excessively kind corporate gift could be perceived as more than just a gesture of goodwill and as an attempt to carry favour. This is a fine line.
2. Gifts can miss the mark
Giving a gift that doesn’t fit the recipient’s hobbies or is too pricey could make your good intentions look bad.
3. It’s another item to put in the budget
Yes, you will have to pay for the gifts, but don’t let price be your sole factor. Consider the worth of a new or retained client before deciding to omit this exercise for the time being. There are also drawbacks to corporate endowments that include overflow. You can end up with a lot of stock if you don’t carefully analyse how many potential customers might benefit from your promotion, especially if you’re giving away expensive, touchy items like shirts, mugs, and so on.
4. A confusing and stressful process
These business etiquette dilemmas will keep you on your toes as if owning or running a business wasn’t already difficult enough. If you are not planning to reciprocating a gift, don’t worry. Giving gifts in business is never required. It’s best to send a heartfelt thank you card if you received a gift but not intent to give one back.