In an episode of The Office, Michael Scott wasn't impressed with his company's move towards technology. He thought the old-school approaches still worked, such as giving gift baskets away to former customers. Of course, it was a disaster. These customers left because of a lack of technology, as well as high prices.
As with any comedy, there was truth to both sides. Actually, we can get sucked into too much technology. And yes, customer gifts can be a good idea. After all, it costs much more money to acquire customers than than to keep them.
So, here's a look at some ideas:
Why customer gifts? You can build customer loyalty and get some branding. It also shows the importance of the customer relationship.
In some cases, you may even get extra business or referrals.
What kinds of gifts? One idea is to focus on gifts that are useful and practical. What's more, it's a good idea to put your logo and contact information on the item (such as the phone number and URL). "Don't miss an opportunity to get in front of your customer," said Melissa Crowe, vice president of marketing services at VistaPrint (VPRT).
And yes, her company offers a variety of gift ideas, which are easy to brand. They include things like mugs, mouse pads and even tote bags. Although, try to make these items unique. For example, you could put quotations or tips on a mouse pad.
Another good gift is tickets, such as to the movies, a play or a music event. Or, if the budget is tight, you can send out cards. But again, try to add some extra value, like a coupon.
What to avoid? Some gifts can cause problems, such as a donation to charity. Unless you really know your customer, this may cause more harm than good.
The same is true for certain types of food or alcohol.
Who gets the gifts? This is really a matter of your budget and the type of gift. No doubt, make sure your best customers get some type of gift. Then, you might have something less expensive for the rest.
You may also want to provide gifts to vendors, partners or even advisers.
When to send gifts? It doesn't have to be during the holidays. Why not try for a different time of the year -- even January, to look forward to the new year?
How about a tax break? In a way, giving gifts to customers is marketing, right? It's true and the IRS does provide some tax relief. The rule is that you can deduct up to $25 per gift for each person. But, if the gift is an event -- where you also attend -- then the entertainment rules apply and you can deduct half of the total expenses (I have more details about business gift deductions on my blog).
Tom Taulli advises on business tax preparation and resolving tax problems. He is also the author of a variety of books, including the including The Complete M&A Handbook
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12-20-2009 @ 10:15PM
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