Marketing City

The Karma of Marketing: Give Gifts To Receive Great Benefits

By SiliconIndia   |   Wednesday, November 28, 2012
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Bangalore: From time immemorial, gift giving has always played a significant role in building interpersonal bonds and relationships. Even tribal leaders in the past (and at present), exchanged gifts for some of the most important causes that include: protection, peace, and food. Today we present gifts for almost all and any event involving celebration. Over time, gift-giving has remained a strong and evolving part of our culture. Anyway, why talk about gift-giving in marketing? Well, if you intend to develop loyalty among buyers, as well as have them spend in a care-free manner at your store, then why not give it a shot? When people receive a gift, they feel special- This is because they understand that the giver particularly selected it for them. Generally, a giver is able to present a desired gift because they know the receiver personally - their hobbies, interests, and above all- anything that makes them happy.

Gift giving is now catching on with brands as a way to develop relationships with buyers. As Bob Garfield, an esteemed commentator and analyst of advertising and marketing recently put it –“we are now in the "Relationship Era." Therefore, giving gifts is one of the best ways to form or strengthen a relationship with customers; as reported by Jim Taschetta via

The Emotional Appeal in Gifting

International marketers have known the secret of gift giving for years. As an example, Body Shop dishes out gift vouchers to customers who have make considerable amount of purchases at their store. This differs from brands that offer coupons, as customers feel good about these gifts and are highly motivated to visit the stores again and use their vouchers.

So why do these stores give away free money anyway?  Only because it works. A recent research suggested that gift cards are ten times more effective at driving customers to stores, more so than any other promotional activity.

Offering gift vouchers in the form of gift cards and gift incentives – is accepted to be a better alternative to coupons and deals. Gift vouchers are highly engaging and somewhat irresistible. No wonder then, they are the number one tool used by radio stations to actively keep listeners engaged and tuned in. Gift cards allow marketers to invite consumers to fully enjoy their brands without inhibitions.

How come No one sees the Advantage?

Wonder why gifts aren’t already a core part of every marketing plan, if gift giving is after all so effective?? Here’s why: Until very recently, retailers have been unable to reap the benefits of giving gifts as they were uncertain of ROI. If you know that a customer’s purchase expenditure runs in to the thousands every time and can make a bet that the buyer will follow that pattern, you can then go ahead and offer a gift card. However, most retailers have customer purchase data on only a small subset of their users and don't have the analytics capability to appropriately analyze such data. Nor can they figure out what the right value should be to maximize effectiveness as well as ROI.

Big Data to the Rescue

Two trends intersect that now make gift giving a scalable proposition. The first is the ability of third parties to anonymously access credit and debit card data in partnership with the largest card issuers(Doing so does not allow personal information to be shared with third parties).  The second trend is the development of technologies that allow organizations to analyze plenty of terabytes of data and make strong predictions on an individual basis, in real time. The intersection of these two trends makes gift giving possible at scale, as new organizations bring their expertise to the area, in to the latest marketing trend - gift marketing.

Consumers today are bombarded with offers and coupons than at any time in the past. And the more marketers offer such deals, the less responsive the buyer tends to become.  In order to stay competitive, retailers will need to now shift funds from couponing and deals to far more effective marketing strategies. By presenting shoppers with a gift, retailers in turn become hyper-efficient marketers that can truly change consumer behavior patterns and create profitable new visits at the scale they require.

Experts on Marketing
Shyam  Sekar S
Senior VP
TaurusQuest Global
Market Analyst
Dart Consulting
Aditya  Sarna
Product Manager
Satrajit  Sen
tripod entertainmet
Ashok  R
Agile Force
Subhasish  Dalal
Training Manager
ICICI Prudential
Surajit  Das
Relationship Manager
Prof J P  Singh
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