HOW MUCH SHOULD I SPEND ON CLIENT GIFTS?
So you’ve decided that it’s time in your business to start client gifting, but you’re not sure how much you should spend on client gifts?
We’ve listed 5 ways to help you determine how much you should spend on client gifts. In general, there really is no wrong or right answer. It really comes down to the goals you want to achieve; as well as how you want to represent your brand or business. However, on average, client gifting spend is anywhere from $75-$100. But that does not mean that is what you have to spend on client gifts. You can spend less or you can spend more - it’s totally up to you! If you plan to spend anywhere between $50-$150, you would be in a completely acceptable and typical range for client gifts. If you’re looking to spend under $50, check out Tip #5 for budget-friendly gift ideas under $50.
1) ESTABLISH A BUDGET
Yes that word BUDGET. When running a business, the words “budget and expenses” are always top of mind. But client gifting is an investment, just like any other business investment. As a business owner, we all have our wishlist items and the must-have items or tools we must budget for in order to run our businesses. For example, you may budget for and invest in a new website, professional photos, new equipment, a new computer, or supplies and inventory. And client gifts are no different, but one that can have a significant return on investment. So establish the total amount of how much you want to set aside for client gifts for the year. And don’t forget to factor in tax and shipping costs too if you’re having your gifts shipped.
2) DETERMINE HOW MANY CLIENTS YOU WANT TO GIFT
Determining who you want to give gifts to is important because it plays a major role in your budget. Are you looking to gift all your clients or just your most loyal and repeat long-term clients? Are you wanting to gift everyone who books with you or just your full-service clients?
Really define who your gift recipient list is and make sure you stick to it. It will not only help keep you on budget, but it will also help ensure that there are no misunderstandings or hurt feelings of clients that didn’t get a gift. If a client sees or hears that you’ve given gifts, but they didn’t get one and wonders why, you’ll be able to explain your system of client gifting if asked about it.
3) GIFT IN TIERS
Gifting in tiers can help stretch your budget. But you’ll want to clearly define your recipient gift list here too. You can start by identifying who your top and best clients are and then tier down from there. Consider how long you’ve been working with a particular client; are they a repeat client and are they constantly sending you referrals?
You can send gifts to different sets of clients and have a different spend for each one. For example, you can do a $100 gift for your top clients, then a $75 gift for another set of clients and a $50 gift for another. It can also be the same type of gift with just a one to two item difference; that way the gift is uniform and on brand and keeps it fair for your clients. It’s completely okay to have different gifting tiers and create different levels of gifts. This works especially well if you offer different packages for clients within your business.
4) DETERMINE IF THERE IS A GIFT POLICY
Find out if there is a gift acceptance policy or spending limit at your clients company. Some companies strictly forbid gifting of any kind and others set a policy regarding the value of a gift that can be received. Knowing if there are any gift policies or restrictions, will help you determine what you can spend per gift.
5) KEEP IT SIMPLE
And lastly, you don’t need to create an elaborate deluxe gift with tons of items in it. Sometimes less is more. You can still impress your clients and have a positive impact with a small gift, while staying on brand and on budget.
Some simple and budget-friendly gift ideas:
- Handcrafted soaps
- Hand cream
- High-quality mugs or tumblers
- Premium water bottles
- Coffee or Tea
- Notebooks or Journals
- Food or snack items
- Coffee table books
- Succulents or terrariums
NOTE: You can always have your gift item beautifully gift wrapped to elevate the presentation of your gift and can also include your logo and brand colors. We can help with that too! - Click here
Determining what to spend on client gifts is ultimately up to you. But if your budget allows, consider client gifting for your business. Business gifting is an important tool that is often overlooked, but it can be an important growth strategy and an effective way to retain clients. (To learn Why You Should Consider Giving Client Gifts read about that here)
If you don’t have the budget right now, then you might want to consider holding off until you do. You want to avoid putting a gift together just for the sake of doing it. You really want to make sure it’s representative of your brand and your ultimate business goals. If the budget is tight, then start small. My motto is always “quality over quantity”. It is much better to send fewer quality gifts than many poorly executed ones; which may come off as feeling forced, cheap and not representative of your brand or business at all.
Trying to figure out how to make client gifts financially work is like any other business expense. There are a lot of factors that go into determining your pricing and factoring in the cost of client gifts is one way to offset the expense. Once you determine what your gift budget is, you can adjust your pricing accordingly.
Don’t think of client gifting as an expense, think of it as an INVESTMENT because it truly is. You’re investing in your clients and making them feel valued and appreciated. Client gifts become part of your overall client experience. And as a result, can be a powerful marketing tool for your business. Gifting is just one way to leave a lasting impression and the gesture can go a long way in helping to build, nurture and strengthen relationships with your clients.
If you’re ready to get started on client gifts, reach out here.
We can also tweak any of our pre-curated selection of gifts and customize them to fit your vision and incorporate your branding. You can view our pre-curated gifts here.
We also offer fulfillment and packaging services. If you already have your gift item(s) picked out and just need help putting it all together or would like it gift wrapped - get started here.