NINE GIFT-GIVING PLANS

1. Holiday

Sixty-five percent of all companies give gifts during the holidays and about 90 percent of all executives receive at least one business gift during the holiday season. As long as the personal relationship between buyer and seller continues, the practice of giving gifts during the holidays will continue.

Gifts should never be excessive but be appropriate to the recipient and in the context of the business relationship. They are away of saying, "Thanks for doing business with us this year. We appreciate having you as a customer."

Holiday gifts are also given to employees of many companies. In similar fashion, many companies understand the importance of maintaining upbeat, positive relationships with their employees, as well as their customers. The holidays are the most common time of year to express this appreciation.

2. Birthdays

Since many people and organizations give and receive gifts at holidays, there is a great deal of competition for recognition and remembrance. For this reason, many companies choose to give customers and employees birthday gifts.

It takes more effort to determine and keep track of people's birthdays, but the special effect is worth the trouble. People like to be thought of as individuals and they appreciate the fact that they are remembered.

3. Anniversaries

Here we have two different possibilities. The first is to send gifts to customers on the anniversary of the start of their business relationship. It is done at the beginning of the month for all customers who started doing business with the firm in that month. An accompanying note tells which anniversary it is and how much the customer is appreciated.

A second approach is for a company to celebrate a major anniversary by giving gifts to customers. Such anniversaries are typically celebrated on the first, fifth, tenth and every five years.

4. Thanks for the order

The best way to express appreciation for an order is to say "thank you" with a promotional product. This tangible expression of appreciation is bound to build customer goodwill and loyalty because it serves as a tangible reminder of the business relationship.

For the best effect, the gift should be treated with dignity. It should not simply be handed out by the salesperson as soon as the order is signed. Instead, it should be sent later, with a letter welcoming the recipient as a new customer. Opening a charge account would be handled in much the same manner.

5. Come visit us

Promotional products can be very effective in drawing people into a retail store or an open house for any type of business. There are two ways to use this type of distribution. The first is to use a promotional product as part of the invitation. Research has shown that response rates to events increase when a promotional product is enclosed in the mailing.

A second approach is to use the promise of a gift as an incentive for people to come to the event. When this is done, the location from which the gifts are distributed should be fairly deep within the store, not just inside the door. In this way, those who come to pick up their gifts will be exposed to the store completely.

6. End-of-payment

When a customer has paid off a large purchase it may be time to offer congratulations and an invitation to come back. It is a perfect time for a retailer to thank the purchaser for past business and encourage future business.

7. Door opener

Salespeople find it easier to get appointments when they give promotional products to receptionists, secretaries and business contacts. In such cases, each salesperson should have his or her name and phone number on the items given.

8. Delinquent bills

Many businesses have discovered that honey attracts better than vinegar and a nice "please" is often more effective than a terse threat. For that reason they enclose a low-cost promotional product with delinquent invoices. The bulk in the envelope guarantees it will be opened out of curiosity. The gift creates greater goodwill and a greater likelihood of payment.

9. Customer re-contact

If a company analyzes its business it will find that present customers -- those with active, open accounts -- are its most important, producing the most sales. Following closely behind are ex-customers -- those who have not made recent purchases, but are predisposed to because of past business with the company. Bringing those customers back into full activity through mailings giving or offering a gift can be an effective way of increasing a company's sales volume with minimal expense.