If, like me, you came into the office between Christmas and New Year you probably found it the ideal time to clear away the clutter of the previous 12 months. When there are less people around and the phones are quieter, it’s far easier getting organised. But how much of that stuff littering your desk do you actually use and did some – or all of it – end up in the bin? By stuff, I’m referring to the promotional gifts that mortgage lenders seem to hand out willy-nilly.
If it can sit on a desk and has space for a company’s name then you’ll find plenty of examples all around the average office: pens, mouse mats, notepads, key-rings, diaries, stress balls and mugs, to name but a few.
Any use?
But is this a type of marketing that actually works or do lenders need to take a fresh look at the art of giving? I have mixed views on the value of promotional gifts and would say categorically that when used in isolation they are often ineffective. There are certainly cases where the money spent on such gifts could be far better used elsewhere.
Take exhibitions, for example. In recent years, Platform has taken a different approach when we exhibit. For many exhibitors it is common practice to have an array of freebies on display, the aim being to lure as many delegates onto your stand as possible. Often all that happens is that visitors will be only too happy to pick up the goodies, yet want to avoid talking or even making eye contact with our people on the stand. There are people who find the prospect of gathering goodies, however tacky, overrides any business benefits they might gain from attending an event.
To counter this we took the decision not to have corporate gifts on our stand. And, since it’s always about quality rather than quantity, we recently decided to have an invitation-only bar where we could actually talk to our guests. Another way to attract attention we found was to hire the services of a magician.
A pile of golf balls might seem like an easy way to entice delegates but in my view it’s an overused strategy – and one that’s unlikely to result in business. But for those companies making promotional gifts I can reassure you that we won’t be dispensing with your services entirely.
Face-to-face
It is clear that our business development team, who spend much of their time meeting brokers face-to-face, still appreciate being able to hand over a small gift. Something kept on a desktop – if it’s useful – can reinforce a brand’s name and certainly many sales people believe in the adage ‘out of sight, out of mind’. But gifts in no way make up for a strong relationship between the broker and the business development manager. Fewer gifts that are of a better quality are likely to be more appreciated.
At the same time no responsible lender will want to offer a gift that is too ostentatious. In a regulated market, any gifts, incentives or hospitality should be proportionate and set within reasonable limits.
Ethics
Business ethics is an increasingly important issue for many firms wanting to be seen to be making unbiased decisions. Let’s not forget though that many of us still welcome receiving an acceptable gift and there is nothing wrong with thanking a valued customer appropriately.
In the specialist mortgage market lenders often rely on brokers to provide them with in-depth information on borrowers. The work is invariably more intensive than with a high-street loan and we typically build closer relationships with intermediaries and packagers compared to those dealing direct with customers. So it makes sense that we want to build our brand with these brokers and also to thank them on occasion.
If, for example, 20 brokers give us their time for a research project, perhaps as part of a focus group, we would want to acknowledge this. The question is – are we spending our money wisely? And this is something brokers may also want to ask themselves. Lenders are not alone in being on the corporate gift bandwagon. Many companies offer customers branded gifts. And a visiting client without an umbrella may well appreciate one when they step out of your office into the rain.
If it’s well made and branded then this will undoubtedly serve its purpose. Likewise, a decent quality calendar could well end up on a client’s wall – a cheap one will probably be thrown out with the rubbish.
Personalised approach
I believe it’s time to see an increasingly personalised approach and more innovation in this area. ‘Me too’ products are rarely going to be appreciated. This business is all about lasting relationships and building these is far more important than swamping brokers with corporate gifts. Yes they can have a place on the desk but they are just one aspect of a marketing strategy.
Paul Hunt is head of marketing at Platform
