To Give or Not To Give…?

Should you give clients Christmas gifts…?

Or maybe not?

This can be a tough ask, especially for micro businesses, or solopreneurs in those early days. You want to show appreciation to your client, everyone else is doing it, but, boy, is it an expensive time of year! Can your cash flow take it? And if it can, do you need to limit yourself to just your ‘top’ clients? And if so, who are they? The ones that pay you the most or the ones that are the kindest, most pleasant to work with and who recommend you and your services to everyone they meet? The season of panic sets it…

The holiday season is a time for generosity and showing appreciation but even established businesses can find themselves in a dilemma. Is it a gesture of goodwill or a potential ethical minefield? Read on as we explore the pros and cons of giving Christmas gifts to clients and hopefully, you’ll find your own answers.

The Pros:

• Strengthening Relationships:

  A thoughtful gift can enhance your relationship with clients, showing them that you value their business and appreciate their loyalty. It's a chance to go beyond the transactional nature of business and foster a more personal connection. It might also be a chance to smooth out wrinkles, connect better, perhaps even foster new business opportunities during this time of warmth and focus on the brighter things in life.

• Standing Out:

  In a competitive market, a well-chosen gift can help you differentiate yourself from the competition. It's a way to leave a positive and lasting impression on your clients. Note - well-chosen does not necessarily mean expensive. A little time taken to think about the person you are giving to and not just about their business and your dealings with them goes a lot further than the money you spend.

• Boosting Morale:

  A small token of appreciation can go a long way in boosting client morale and making them feel valued. This can lead to increased loyalty and repeat business.

The Cons:

• Ethical Considerations:

  In some industries, gift-giving can be perceived as a bribe or an attempt to influence business decisions. It's important to be mindful of the ethical implications and ensure that your gifts are appropriate and comply with company policies and industry regulations. This is where thoughtful and measured goes a long way.

• Cost:

  Depending on the size of your client base, gift-giving can be a significant expense. It's important to weigh the potential benefits against the cost and ensure that it aligns with your budget. If it doesn’t, then we suggest don’t do it. Be creative, think of an alternative to expensive gifts - time, commitment, thoughtfulness, kindness, can go much further than an item in glitzy wrapping.

• Unintended Consequences:

  A poorly chosen gift can backfire and create awkwardness or even offence. It's crucial to consider your clients' preferences and cultural backgrounds to avoid any missteps.

Alternatives to Traditional Gifts

If you're unsure about giving physical gifts, there are plenty of alternatives that can still show your appreciation:

• Charitable Donations:

  Make a donation to a charity in your client's name. This is a meaningful way to give back to the community and show your commitment to social responsibility.

• Personalised Cards:

  A handwritten card with a sincere message of thanks can be just as impactful as a physical gift. It's a personal touch that shows you care. It shows you have taken time to consider them as a person and not just as a means to profit, and, as we all know, time is the most valuable asset you have.

• Experiences:

  Offer your clients an experience, such as tickets to a show or a sporting event. This can create lasting memories and strengthen your relationship.

The Bottom Line

Ultimately, the decision of whether or not to give Christmas gifts to clients is a personal one. It's important to weigh the pros and cons, consider your company culture and industry norms, and make a decision that aligns with your values and budget.

Remember, the most important thing is to show your clients that you appreciate their business and value their relationship. A thoughtful gesture, whether it's a gift, a donation, or a simple card, can go a long way in fostering goodwill and building lasting relationships.