Stop Showing Appreciation- Part 1

Well, don’t stop showing appreciation, but stop using items that don’t give you a return on your investment. First, you need to get clear in your mind whether you are giving a gift or making a business investment. If your company is paying for this, then my belief is that you are making a business investment. Business expenses pretty much always should have business purpose and a business return.

Is this to cold and calculated? Not for a business that is focused on its success. Don’t misinterpret this. I am not saying a business can’t be motivated by doing something thing nice for someone. They can and should! But what I am saying is that the act of kindness (or who it was directed to) should have a business purpose.

So what makes some times of gifts better than others? The main criteria we suggest you start with is will the gift be memorable? If the gifts you are giving are consumable or “disposable” then they are not ideal. Out of sight is out of mind when it comes to referrals and repeat transactions. If your gift is eaten, consumed or transferred (gift card purchase) then in is not a great gift or way to show your appreciation. What about cash? Everyone thinks that people appreciate cash the most, but studies have shown that this is not true. Cash is probably the worst, because few people are disciplined enough to set aside the money to spend it on something special for themselves. The money goes into their wallets and gets spent on the next purchase. So great, you just bought gas and groceries!

So what makes a great gift? Check back Thursday for the concluding post!