The Merits of Gift Giving

A free key chain, half off of a drink, a nice pen, and the other little stuff that companies offer has a meaning and purpose beyond simply spending money. It helps raise the satisfaction levels of customers and lets them know your appreciation for their patronage. It is a small token of kindness that can encourage customers to keep coming back over and over.

There is a balance that needs to be struck between making the gift of meaningful value in order to show appreciation and not so expensive as to break the profit margins of the business. A key chain is one thing but a free night in a hotel is something completely different. The gift can't be so cheap that it is passed bye the customer without acknowledgement. A strong rule is 10% of the value of products under $300 and 5% on products worth over $300.

Another important aspect to consider is the usefulness of the gift in the eyes of the customer. Often, it is beneficial to marry the two products based on genre. For example, a free drink at a restaurant, free shuttles from the airport to the hotel, and free play money at a casino make great sense. The customer will find immediate use in the gift which will be appreciated.

If you choose the right gift it is possible to encourage customers to stay, spend more money, and have a stronger image of the service. For example, having a free meal at the restaurant with two nights or more can give a customer a chance to try the restaurant and come back again if they enjoyed the experience. The more times they come back the more money you can make over time.

It is also important to consider that surprise gifts are more important then advertised gifts in terms of their ability to raise customer satisfaction. Let us say that you walk into a bar and after a few drinks the bar tender says, "I want to give you a free drink for being such a great customer". This will likely be of more value to you then buying a drink and getting one free. Such gifts appear to be customized and heartfelt which means a lot in building customer satisfaction.

Using gifts to retain customers and improve satisfaction doesn't need to be hard. Simply, consider price, perceived value, the surprise element, and relevancy of such gifts before you set your mind on which gift to offer. Great customer service starts with helping feel important and appreciated when they come to your business. Free gifts can give you that opportunity.