The Gift Economy: How Giving Builds Trust, Loyalty, and Stronger Connections

There’s a reason that gifts are one of the love languages. Receiving a gift, especially one that’s unexpected and thoughtful, makes you feel loved and sets off excitement and joy. Giving a gift makes you feel altruistic and fulfilled. The relationship between the giver and receiver improves with a thoughtful gift, and one study showed that people are 89% more likely to say they feel connected to the giver when they’ve just opened a gift. Both people benefit emotionally from the gift, and it even releases ‘happy chemicals’ in our brains when we give and receive gifts which make us obviously feel happy but can also lower blood pressure and make us feel safe, which further builds a good trusting relationship with the gift-giver.

When deciding to give gifts to clients as a business, you’ll be tapping into the idea of reciprocation. As humans we strive for balance and so we feel obligated to return a gift to right the scales. What we give back doesn’t have to be in the same form which means that when you give a client a gift, they can repay you by continuing to use your services. This keeps everything balanced and you and your client benefit from a stronger business relationship. Receiving gifts will also let your client know that you appreciate their custom which can lead to heartfelt word-of-mouth referrals.

Giving gifts to employees of your business works in a similar way. You express gratitude with a gift, and this works as positive reinforcement with your employees. An unexpected thoughtful gift must mean they’re doing a good job. This has actually been shown to make employees work harder and feel happier at work so gift-giving is a great way to keep and motivate the best staff.

What are Some Cultural Differences in Gift-Giving Practices?

Although the giving of gifts wasn’t studied until the mid-1920’s, it’s been seen in cultures all over the world for hundreds of years, even going all the way back to the Mayans. It seems that it evolved to show appreciation and to cement alliances. There are nuances between cultures and countries though, so we’ll now answer the question ‘why do you need to be culturally aware when you receive gifts in different countries?’.

It’s important to consider the religious practices of another country when considering gifts. Many religions view gift-giving as a way to honor their deities so it’s a big part of the culture in countries where those religions are dominant. In Islamic countries for example, giving gifts shows generosity and kindness which are important virtues. In those countries, you should be sure to reciprocate the gift even in a small way, so you don’t appear rude or that you’re going against their religion’s virtues.

Similarly, when sending gifts, it’s important to consider the recipient’s religion and whether they celebrate the same holidays as you. For example, if you send a Christmas gift to someone of the Judaism faith you’re likely to offend them as they celebrate Hanukkah instead which falls at a similar time but is a movable holiday and has a different meaning. Considering other cultures and religions will ensure you’re only sending thoughtful gifts that will improve your client relationships and boost your business.

How to Stay on the Right Side of Ethics

Now you know the positive impact gift-giving could have on your business, you’re probably now thinking ‘why is ethics important in a business environment such as when receiving gifts from and when dealing with customers in the organization?’. There are a few precautions you need to take to make sure your business stays above board which we’ll go through now. It’s important to record all gifts sent and received. This way you can show that you haven’t sent or received anything extravagant that could be seen as a bribe or intended to force decisions. Gifts should be sent and received as a token of appreciation of ongoing business or hard work. Not sending anything over-the-top also ensures your client won’t feel uncomfortable that they can’t reciprocate it as this would have the opposite effect.

Keeping your gifts in moderation will also make sure they’re still a fun surprise rather than becoming transactional. It’s also important that you’ve already built the client relationships and are enhancing them with gifts rather than sending lots of gifts to win someone over. Keeping transparent gift records will ensure that your business stays ethical, and your client relationships can blossom.

Now we’ve answered the question ‘what is the proper position of giving and receiving gifts in a business situation?’, we’d like to introduce our service. We send the right gifts at the right time on your business’ behalf, and everything is logged to make sure your business is following legislation. For more information, visit our client gifting page here.