Corporate Gift Giving Study Results

1

Corporate Gift Giving Study Results

Nathaniel KucsmaOctober 2014

2Background and Methodology

In September 2014, ASI® commissioned a study to be conducted with corporate end-buyers about their gift-giving

plans for the 2014 holiday season. Respondents were screened to ensure that they had final purchase authority or significant

influence over the gift-giving decisions for employees and customers/prospects.

A total of 303 end-buyers who met these criteria responded to the survey. Survey responses were collected between

September 30th and October 27th.

3Key Findings - Overall

• About six in 10 (62%) companies are planning on giving out gifts this holiday season to employees or customers/prospects.

o The remaining 38% of companies have either decided to not give out gifts this year or are still undecided.

• Spending on corporate gifts is anticipated to remain unchanged from 2013 for most companies (74%) who are giving out gifts.

o Among the companies anticipating a change in spending this year, many more (19%) are anticipating increasing their expenditure than decreasing it (7%).

• On average, 68% of gifts that will be distributed this holiday season will have the company’s logo on it.

o More than four in 10 (42%) companies who are giving out gifts this year report that all of the items they give out will have their company’s logo on it.

• When asked what the most important attributes are when deciding what promotional products to purchase, attractiveness, durability and utility topped the list.

4Key Findings - Employees

• More than four in 10 (43%) companies are planning on giving out gifts this year to employees.

o Nearly one-third of companies are undecided about their employee gift giving plans for employees.

• Three-quarters (75%) of companies who are giving gifts to employees report that all employees will receive a gift.

• The most popular gifts for employees are gift cards (53%), followed by food/beverages (33%), apparel (31%) and cash bonuses (28%).

• Employers report that they will spend an average of about $50 per employee on gifts this holiday season.

• The median amount being spent by companies is $38 per employee.

• Most companies (78%) are planning on spending the same amount this year as last year on employee gifts.

• Only 5% of companies that are giving employee gifts this year report that they are planning to decrease their spending on them, compared to 17% who expect to increase their spending.

5Key Findings – Customers/Prospects• More than four in 10 (42%) companies are planning on giving out

gifts this year to customers and/or prospects.

o One-quarter of companies are undecided about their customer/prospect gift-giving plans.

• On average, companies who are giving gifts to customers will distribute 116 gifts, while those giving gifts to prospects will distribute 76.

• The most popular gifts for customers/prospects are food/beverages (53%), followed by desk accessories (35%), writing instruments (31%) and calendars (28%).

• The main goal of giving gifts to customers/prospects is to express appreciation (86%) and for relationship development (69%).

• Companies report that they will spend an average of $43 per customer/prospect on gifts this holiday season.

• More than four in 10 (42%) giving gifts to clients/prospects report spending more on their larger clients than on their smaller ones.

6

Overall Gift-Giving Plans

7

Overall Gift Giving

• Among surveyed companies, 62% are planning on giving gifts out to employees and/or clients and prospects.

• The remaining 38% are not planning on giving out gifts this year, or haven’t made the decision to do so yet.

Employees only19%

Clients/ Prospects

only19%Both

employee and client/ prospect

24%

Neither/ Not sure

38%

Who companies are giving gifts to this holiday season

8

Overall Gift Giving

• Most companies are planning to spend the same amount on holiday gifts this year as compared to last year.

• Among those changing the amount they are spending this year, more are likely to report increasing their spend than decreasing it.

Increased19%

About the same74%

Decreased7%

Change in spending on all gifts from prior year

9

Overall Gift Giving

• On average, 68% of gifts that are given out will have the company’s logo imprinted on it.

• 42% of companies who are giving gifts this holiday season report that all of the items they give out will have their logo on them.

100%42%

75% - 99%10%

50%-74%14%

1% - 49%11%

0%23%

Percentage of gifts that will have company logo on it

68%

95%

Mean Median

10

Importance of Attributes When Buying Promotional Products

• Attractiveness, durability and utility are all important factors when end-buyers are deciding which promotional products to purchase.

• Alternatively, much less consideration is given to the eco-friendliness of the product or whether it was made in the USA.

37%

46%

55%

70%

83%

85%

92%

24%

25%

27%

19%

10%

9%

5%

39%

29%

18%

11%

7%

6%

3%

0% 20% 40% 60% 80% 100%

Product is eco-friendly

Product is made in the USA

Product has been tested forsafety

Product is low-cost

Utility of product

Durability of product

Atractiveness of product

Important (8-10) Somewhat Important (6-7) Not Important (1-5)

11

Employee Gifts

12

Gift Giving to Employees

• More than four in 10 employers are planning on giving gifts to their employees this holiday season.

• As of the survey date, nearly one-third of employers were still undecided about giving out gifts to employees, while about one-quarter had decided against it.

Yes43%

No27%

Not Sure30%

Planning to give gifts this holiday season to employees

13


• The majority of companies (75%) who are planning to give gifts to employees will give them to all of their employees.

• 86% of companies giving gifts to employees this holiday season will give them to 75% or more of the employees in their company.

All Employees

75%

75% to 99%11%

50% to 74%5%

Less than 50%9%

Percentage of employees who will receive gifts

14


• Gift cards are the most likely gift to be given out to employees this holiday season, followed by food/beverages, apparel and cash bonuses.

3%

5%

7%

8%

8%

12%

16%

18%

19%

21%

28%

31%

33%

53%

Charitable donation

Travel

Jewlery/Watches

Bags/Luggage

Sporting goods

Calendars

Writing instruments

Electronics

Drinkware

Desk accessories

Cash bonuses

Apparel

Food or beverages

Gift cards

0% 10% 20% 30% 40% 50% 60%

Types of gifts companies plan to give to employees

Tier 1

Tier 2

Tier 3

15


• The median spent per employee is $38, indicating that half of employers who are giving gifts will spend under $38 and half will spend over $38.

• On average, employers giving gifts to employees will spend an average of about $50 per employee.

$250+7% $101 -

$24911%

$76 - $10011%

$51 - $756%$26 - $50

24%

$11 - $25 22%

$10 or less19%

Amount planning to spend -Per employee-

Median: $38 per employee

16


• Most companies are planning to spend the same amount on employee gifts this year as compared to last year.

• Those that are changing the amount they are spending this year are more than three times as likely to report increasing their spending than decreasing it.

Increased17%

About the same78%

Decreased5%

Change in spending on employee gifts from prior year

17

Customer & Prospect Gifts

18

Gift Giving to Customers/Prospects

• About four in 10 companies are planning on giving out gifts to customers and/or prospects this holiday season.

• As of the survey date, one-quarter of companies were still undecided about giving gifts to customers and/or prospects.

Yes42%

No33%

Not Sure25%

Planning to give gifts this holiday season to customers/prospects

19


• Companies who are giving gifts to customers anticipate distributing them to 116 customers on average.

• Companies sending gifts to prospects expect to distribute them to 76 prospects.

Number of gifts

116

50

76

23

Mean Median Mean Median

Clients Prospects

20


• Food or beverages are the most popular gifts for customers and prospects.

• Following food/beverages in popularity are gifts that could be used around the office, specifically desk accessories, writing instruments and calendars.

1%

2%

6%

6%

9%

10%

15%

17%

20%

22%

28%

31%

35%

54%

Jewlery/Watches

Cash bonuses

Travel

Charitable donations

Sporting goods

Bags/Luggage

Electronics

Apparel

Gift cards

Drinkware

Calendars

Writing instruments

Desk accessories

Food or beverages

0% 10% 20% 30% 40% 50% 60%

Types of gifts companies plan to give to customers/prospects

Tier 1

Tier 2

Tier 3

21


• The primary goal of giving gifts to customers and prospects is to simply express appreciation.

• Relationship development is also a key driver behind the decision to give gifts to customers and prospects

7%

21%

22%

28%

51%

51%

69%

86%

Other

Obtain a sale

Generate a lead

Obtain a referral

Increase company awareness

Generate company good will

Relationship development

Express appreciation

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Goals of giving gifts to customers/prospects

Tier 1

Tier 2

Tier 3

22


• On average, employers who are giving gifts to customers/prospects will spend an average of $43 per contact.

• The median spent per customer/prospect is $38, which indicates that half of employers who are giving gifts will spend under $38 and half will spend over $38.

$250+3%

$101 -$2493% $76 - $100

9%

$51 - $7515%

$26 - $5021%

$11 - $25 25%

$10 or less24%

Amount planning to spend -Per customer/prospect-

Median: $38 per customer/prospect

Mean: $43 per customer/prospect

23


• More than four in 10 who are planning on giving gifts to clients state that they spend more on their larger clients than their smaller clients.

Yes42%No

58%

Whether more is spent on larger clients than smaller clients

24


• Most companies are planning on spending the same amount on customer/prospect gifts this year as compared to last year.

• Those that are changing the amount they are spending this year are just as likely report increasing their spending as decreasing it.

Increased11%

About the same76%

Decreased13%

Change in spending on customer/ prospect gifts from prior year

Marketing

Corporate Gift Giving Study Results