Whether we realize it or not, gift-giving is social psychology in action, a technique powerful in force when applied correctly. I’m not speaking of gift giving on traditional holidays, birthdays, and the like, but rather gift-giving as a form of persuasion in social psychology that is used in successful businesses, from large corporations to smaller independent companies, every day.
In our precursor to this article, The Art of Persuasion, we explained how persuasion is used by all of us everyday in order to persuade a successful outcome in our favor: foot-in-the-door, that’s not all, and scarcity. Gifting motives in business are no different.
Only one prominent distinction between the we use persuasion in our everyday lives, and the way successful companies use gifting, is that the former is often unconscious while the later is most definitely always conscious, and absolutely intentional.
There’s no hard rule that says how much you need to spend. CEO’s of multi-million-dollar corporations are some of the most frugal of all people. More likely to wait for a bargain that’s as close to nothing than the average coupon-cutter mom at the super market. Along with that they aren’t going to spend one-dollar to send a gift to a prospect client unless it’s sure to produce a return in profit for them. Here are the motives that inspire businesses to use gifting to persuade outcomes in their favor: To grow their network and develop long-lasting relationships, To market their company and brand, Customer retention – or loyalty, To close a deal. Continue reading