How Much Should You Spend on Client Gifts? When it comes to corporate gifts, you want to be Goldilocks – don’t spend too little, don’t spend too much, but spend just the right amount. If you underspend, you may leave your customers wondering if you really care about them at all. And if you overspend, you could make things awkward, or even come across as desperate. Neither is a good look.

So, what is that “just right” number? The answer to this question isn’t one-size-fits-all. For businesses with a lower revenue/client, like many e-commerce businesses, a $100 gift per client will likely sink your business…quickly. However, for businesses, like attorneys, who have a higher revenue/client, a larger gift budget is appropriate.

How Much Should You Spend on Client Gifts? So, where do you start? We recommend starting with a budget of 1% of your revenue/client, and then adjusted as needed for your business/industry. For easy math, let’s say your average revenue/client is $100. We would recommend spending 1% on client appreciation. For 1%, or $1, you can cover a custom postcard and a stamp. That might not sound like much, but it’s a great way to show appreciation to your customers without breaking your budget.

If your average revenue/client is $10,000, 1% of that would be $100. For $100, there is a plethora of options, including our very own beCAUSE minded gift boxes. Find something you believe your recipient would like that also fits with your company values. There is an upper limit here though. If your client used $1,000,000 in services, you may consider budgeting $1,000 but this size gift may come across as awkward. In my first company, our clients spent anywhere between $60,000 and $900,000. We spent about 1% per client on holiday and birthday gifts annually, but we capped the gifts at $300 per individual gift. We felt anything over that could be awkward for our clients and us.

How Much Should You Spend on Client Gifts? 
If you have a larger budget per client, you may consider purchasing both birthday and holiday gifts, splitting your budget into two occasions. Or, if you work with several people on a team, consider getting each of them an individual gift. There’s something about a person’s name being on the gift that makes them feel more special than a shareable office gift.

When making your budget be sure to account for the cost of the client gift, shipping, a greeting card, and any cost for branding if you are choosing to give branded business gifts. These extras can add up.

As we mentioned at the beginning, you will need to adjust the budget to fit your business and industry. As an example, roofers do not normally give a $100 gift to each of their clients, so while it would be appreciated, it’s not something a client would expect. A $25 gift would be appropriate in this case. Conversely, high-gifting environments might demand more than a 1% budget.

Ultimately, your goal with client gifts is to build your connection with your client by making them feel valued. And by spending time planning your gift budget, you will ensure you’ve got the funds to make this happen.

Do you have a budget for corporate gifting that works for your business? If so, how did you set your budget?