The Difference between Business Gifts and Promotional Gifts

Most people and even businesses mix up and use one to mean the other when describing Business Gifts and Promotional Gifts.
While business gifts and promotional items are both used as marketing tools, they do so in very different ways. They have been implemented by companies large and small as a more cost-effective marketing alternative.

Though they both serve a good purpose for any business, but in order to implement them effectively, you need to clearly understand the differences between them.
In this article, we would be talking about both – what they mean and when to give them.

Business Gifts

What it means?
These are valuable item(s) offered without obligation to selected recipients by a company, as an expression of appreciation or goodwill. Unlike promotional items, business gifts generally do not carry an advertising message but may instead be personalized with the recipient’s name.

Intangible business gifts, such as weekend trip, lunch voucher etc now comprise of a significant portion of corporate gift-giving. Most businesses have established policies for giving of business gifts.
It is important to be thoughtful when choosing gifts for your clients, since the aim is to show your appreciation to your client the best and cost effective way you can.

Business Gifts highlight the significance of the personal relationship itself, rather than on the day-to-day transactions of products and services; and it elevates the relationship between the company and the client.
Thoughtful gifts also have a natural reciprocal quality to them; when someone is appreciative of you, it elicits a natural response and builds the foundation for customer loyalty.

A business gift may or may not be branded since it depends on the type of gift and to whom it’s being given.
It is not unusual for companies to gift clients with some type of token or gesture of appreciation when the customer has generated an equitable amount of sales over the past calendar year.

When to give?
Many companies choose the December holiday season as the ideal time to send a business gift to each client who meets the criteria established by them.

Promotional Gifts

What it means?
Promotional gifts reach a much wider audience and are targeted towards customers and consumers in order to increase brand awareness and promote customer loyalty. Many companies implement promotional items as a way to simply make consumers more aware of what their business is all about in the hopes of increasing their customer base. Other companies will use promotional items as a way to market a specific range or product.
Promotional items have the potential to act as ongoing adverts, which is why the item itself needs to be the right choice.
It is important that promotional items are practical and that recipients can use it on a daily basis. The more promotional items are exposed to a variety of different people, the better the chances are of some taking note.

Promotional gifts are tangible gifts and range from pens, mugs, power banks, mouse etc. Because of its nature, the promotional gifts are usually packaged together to make it more meaningful.

When to give?
There is no specific time earmarked for promotional gifts. It can be given any time during the course of the year. Though most businesses now choose to give mostly during December as an end of the year appreciative token.
The flexibility or versatility of promotional gifts makes it an ideal marketing tool adopted to create brand awareness/visibility.

As can be seen here, corporate gifts and promotional items serve two different purposes both with equal value.
If you are considering utilizing these marketing tools, be sure to think carefully about what it is you want to achieve. Are you looking to widen your customer base, or do you want to boost staff morale and strengthen current working relationships? The more you think through, plan and strategize what it is you want to achieve, the more these marketing tools can be of benefit to you and your company.

And there is no law that says you cannot do both, if your budget can accommodate it.

So, what are you giving out this festive season? Time is of essence. Remember, saying ‘thank you’ with your gifts is considered good business etiquettes.