The Importance of Promoting Your Gifts

With gift-giving, the buyer of the product is not necessarily the consumer of it. Surprisingly, this shift can promote stronger attitudes and relationships with the brand, changing purchasing behavior. We'll explore this more in the following lesson.

2-3 Days to Apply
Useful for All Industries

What did the research find?

In a series of experiments, customers who purchased items as gifts for others went on to spend 63% more with the brand in the following year. Gift buyers also had a 25% higher purchase frequency, 49% more cross-buying and 41% more spending per shopping trip.

What could cause this behavior?

Compared to those buying products for personal use, gift givers devote more cognitive effort to their selection of products, and spend more time searching and evaluating their options. When successful, this effort reinforces the consumer-brand relationship, leading to increased purchasing.

How could you apply this?

Start by positioning existing products as gifts even outside holiday seasons. If you have promotions or advertising specifically for gift-giving, target them towards new customers where the effects are strongest. Reduce friction with categorization for gift-giving, such as price range, occasion or even the recipient’s personality. Finally, make your brand more prominent on gift packaging as it reinforces the giver’s public commitment to your brand, driving better long-term performance.

Eggert, Andreas, et al. “Gift Purchases as Catalysts for Strengthening Customer–Brand Relationships.” Journal of Marketing, vol. 83, no. 5, Sept. 2019, pp. 115–132