Advertising impact: maximize the gift of giving

Nation's Restaurant News, Sept 13, 1993 by Ellen Daly

Many businesses appreciate the positive effects of presenting gifts to customers. The benefits of providing tangible recognition for employee accomplishments are well known. And the attention-getting potential of everything from balloons to watches when one is introducing products and attracting customers is documented in sales statistics.

Such "sophistication" has long existed on one end of the "promotional products" spectrum. But most items -- pens, pencils, calendars, key holders, coffee mugs and the like -- have been used simply as "give-aways," implying they really possess little instrinsic worth for the recipients and negligible advertising value for the company handing them out.

It's not surprising that businesses have viewed most promotional products as dispensable. If there's enough money left in the advertising budget to buy a couple hundred cheap appointment books, then the buying decision is unrelated to the company's real marketing or sales programs.

In fact, sales reps often agitate for "something to give away" when they visit customers. "Many times the pressure point with senior management is reached when the sales manager says, 'Our calendars are useless, but our competitor is always giving out something or other. Let's do it just to keep everyone happy."

Contrary to popular opinion, the power of promotional products (long called "ad specialties") can be enormous. In fact, it appears that their worth is embedded in the human psyche. We all know what happens when a neighbor brings over a plate of cookies or a casserole. The friendly act always increases the level of stress. "What are we going to give them?" is the first question. No one is comfortable until a basket of apples or a bouquet of flowers has been delivered.

It's the same when we're invited to dinner. From the moment the invitation is received, we're busy planning how to reciprocate.

Whenever we receive a gift, we can't seem to rest easy until we've given something in return. It's as if we're uncomfortable when the scales are out of balance. The desire to reciprocate seems to be inherent in human nature, according to psychologist Robert B. Cialdini, Ph.D.

The power of a promotional product rests with reciprocation. If the right gift is presented properly, the recipient will want to give something back. In business, reciprocating, returning the favor, can occur in a variety of ways:

(1) Promotional products create a positive perception. Whether it's a perception of the way you do business or your product image, the correct gift influences the way the recipient perceives the business or the product.

At a trade show a major bank had a booth near the entrance. As the visitors came through the door and passed by the booth, each was handed a plastic coffee mug with the bank's name and logo imprinted on it.

Somewhere near the center of the same show, another company presented visitors with attractive, tall coffee mugs made of porcelain. Dozens of people commented on the difference in quality between the two coffee cups. More than a few also noted that the bank -- a major financial institution -- was "cheap" for giving away plastic mugs.

That is an excellent example of reciprocation. Give an item that's perceived to be of insignificant value, and the customer harbors negative attitudes toward the giver. Give a good-quality gift, and the customer will respond with a positive view of your company. In other words, the receiver reciprocates by giving back in kind.

(2) Promotional products reinforce the buying decision. It's easy to forget that once we've signed the contract, written a check, handed over cash or used a credit card, there is often a let-down feeling that follows. The mind begins to play games. "Have we made the right decision?" we ask ourselves. "Maybe I really didn't need to buy that now. Could we have done better somewhere else?" Doubts creep in and begin to spread. If they aren't stopped, they can destroy the sale -- and the relationship between the customer and the company.

The wise real-estate agent, the prudent insurance broker and the astute car dealer understand what is often called buyer's remorse, the dark cloud of doubt that enters the mind after a purchase has been made. That can happen when one is buying a suit or a dress as well as when one is purchasing a home or car.

To avoid buyer's remorse, the real-estate broker sends new home buyers a personalized, brass door knocker accompanied by a "thank you for your business" letter. A set of gold house keys in a special velvet-lined gift box causes customers to feel they made the right decision.

Here's a word of caution, however. Presenting the customer with a 48-cent plastic key holder or a cheap ball-point pen may produce an intensely negative reaction from the customer. "I spent all that money, and this is what they give me." The gift must be fitting, or the customer will never come back.

(3) Promotional products strengthen relationships. When businesses give appropriate gifts, they send the most important message of all to the recipient: "These people think that I really am important."