How Much Should Companies Spend on Branded Gifts?
This is a question that tends to induce bouts of anxiety and even fierce debate between different departments within the business. Without question, branded gifts have a value beyond their actual cost and they are a great way of getting your brand in front of people, but how much should you spend to achieve this aim?
It’s not easy to give a definitive answer about how much to spend on branded gifts. This is because every business will have a different size of budget in mind, and even a different mindset about what represents good value for money.
Certain branded gifts, such as mugs with logo, are often cost-effective solutions as you won’t have to spend huge sums of your marketing budget to see a positive return on your investment. To get a bit of clarity on the subject, here’s some key points to consider.
Understand why you are spending the money
A good starting point would be to appreciate why you are spending money on branded gifts and what you want to achieve from your investment in this proven marketing tool.
Ultimately, you are looking to try and build strong relationships with your customers and keep your name in their mindset when they are making purchasing decisions. Corporate gifts are a great way of achieving those aims as they help encourage a sense of loyalty and appreciation.
When you give someone a branded gift it helps them to feel valued. Even a relatively modest outlay on something like branded mugs or pens can really help strengthen that bond. How do you quantify that sort of response to your gift?
Instead of looking at the pure cost of a branded gift that you are going to use to promote your business it’s wise to also make an allowance for the benefits it delivers as well.
Finding the right balance
There can often be a fine dividing line between spending too much on corporate gifting, or too little. Neither scenario is good, for many reasons.
If you try to cut corners and end up with something that looks too cheap, it sends out the wrong message about your business and the recipient won’t feel that valued either. On the other hand, if your gift is too extravagant, it can lead someone to think that you must be making too much money out of them to be able to afford to spend so lavishly.
As you can see, it’s a fine balancing act to get it just right. A good approach would be to look at branded gifts that are of a good quality but also serve a useful or practical purpose, which makes them more likely to be well received.
A good example of this would be if you gave someone a good quality branded coffee mug. They are likely to use it on a regular basis, so you get a positive brand association, and it won’t have blown a huge hole in your overall marketing budget.
All things considered, rather than simply focusing on price to decide how much you spend you should also consider how well your branded gift will be received by the person you give it to.