Every year marketing and sales driven companies spend millions of dollars to attract new clients. The more revenue a company generates, the smaller its sales team. Small to medium size businesses, on the other hand, have larger sales teams. For example, a company with $0M - $1M has 35% of its workforce in sales. At $10M a company has only 17% of its workforce in sales.
Companies with a 35% sales team want to attract new clients; however, they are also the companies with the highest churn rate. They neglect their current clients in pursuit of new clients. They don’t show gratitude and appreciation for their existing clients, so they lose more clients than they bring in. In a world of numbers, it’s easy to forget that those who buy from you are merely human.
We’ve learned at MentalHappy the last couple of years that no software or dashboard can tell you why clients churn. Optimizing your product and neglecting current clients is like putting tape on balloons to keep their air from escaping. Eventually, the balloon will be too heavy to leave the ground. In our experience, it is only real personal human connections that achieve client longevity. Why someone churn may be as simple as “They lost a pet, “ and they are not emotionally ready to deal with you or someone at your company. The failure isn’t in the loss of a client; the fault is in failing to make a personal connection with a client.
You have fantastic clients so why not show them you appreciate their business. The solution to keeping your clients is showing gratitude, appreciation, and empathy. Gift giving is one of the ways to achieve it. Business gift giving is nothing new, but so many organizations neglect it. It can turn your least happy clients into evangelists.
The Don’ts of Client Gift Giving.
Most companies give gifts with their logo on it: a promotional item, believing that somehow they are giving something away. The purpose of a gift isn’t to bluntly request something in return. If a gift is truly personal, then it will be a gift for the recipient. If you put your logo on your clients' gift then it’s truly not for your client, it’s for the person who picks it up from the garbage.
- Logo items are for marketing – not gifts. You are selling to your client again. (Failed)
- Presumptuous gifts – Your clients aren’t Frasier Crane they don’t need a reservation for two at Canlis. At that point it’s a bribe and uncomfortable. ( Failed )
- The gift with a Call to Action (CTA Gifts) – You are asking for your client to take action on a gift you gave them. ( Failed )
The Do’s of Client Gift Giving.
- Personalization matters – Business gift giving is about the recipient and not the giver. Personalize your gift to each client. There is no one size fits all.
- Make it shareable – Include your clients' spouse/girlfriend/boyfriend in your gifting. Don’t include items for both, make it shareable
- Surprise and Delight them – You will be surprised how many companies aren’t taking the time to appreciate their clients. Send them a gift when they least expect it.
Now that you know what to do and not do, here's what’s next. Deciding whether to send clients gifts or not is the natural part. The hard part is choosing what gift to send. You want to send a gift that doesn’t seem like you are trying to buy the clients attention.