A lagniappe (/ˈlænjæp/ LAN-yap, /lænˈjæp/ lan-YAP) is “a small gift given to a customer by a merchant at the time of a purchase” (such as a 13th doughnut on purchase of a dozen), or more broadly, “something given or obtained gratuitously or by way of good measure.”[2] The word entered English from the Louisiana French adapting a Quechua word brought in to New Orleans by the Spanish Creoles. From Wikipedia
Last week’s article mentioned the value of gift-giving to build relationships and generate new business. This week I was on the receiving end of several offers that reinforced the value of gifting. The most memorable situation occurred while talking with a prospective new consultant, Linda. Linda recently left a corporate career to strike out on her own, as a licensee of a National Brand that markets productivity enhancing solutions. We talked about her program’s benefits and I told her about our business model. At the end of our conversation, she invited me to complete a complimentary on-line diagnostic to determine how I might benefit from her services. It was gift of a free service. I was intrigued and gladly completed her survey. Her diagnostic is an excellent way to qualify new clients and since she captured my name and email address, she has what she needs to build a long-term relationship. Naturally, I did the same.
Early in my career, I spent five years working for Hickory Farms of Ohio. Hickory Farms built its business by offering gifts of free samples. Employees would greet shoppers passing in front of their store with the offer of a free slice of Beefstick Summer Sausage. While the shopper was enjoying their sample, the employee would tell them about the product and ask if they liked the taste of the item. A positive response from the shopper (commitment) began a conversation often leading to a sale. Today, sampling is a common practice used in restaurants and grocery stores.
Gift giving is a practice deeply embedded human culture. We know that throughout history, especially in the political realm, it was customary for visitors to present their host with a gift. The more important the host, the greater the gift. Gift giving is still a common practice, especially between people with established relationships. However, most larger companies have established rules for accepting gifts to ensure ethical behavior. In my experience these rules usually govern the acceptable value of the gift and full disclosure. Giving gifts is an excellent way to say thank you and to demonstrate appreciation, however, gifts can also be an effective way to establish a relationship.
Reasons for offering a gift:
- To build and reinforce relationships/loyalty
- To show love, devotion, and respect
- Symbolic communication
- To help others (altruism)
- To find a mate
There is an entire industry segment (Promotional Products) devoted to gift-giving as a marketing tactic. I am confident that you have received items from companies that want your business. Typically, these are small items with a low monetary cost, but high utility value, which includes the giver’s logo, a tagline, and even a telephone number or email address. Items like coffee mugs, writing utensils, and key fobs come to mind. Every time you use the item you recognize the logo and think of the gift giver.
Linda’s technique is a classic way to generate new clients. Other similar offers include White Papers, Research Reports, Directories, and Training, among others. These offers are seldom 100% current or complete so they provide limited value but are useful ways to whet one’s appetite for more. Another effective technique is to offer a limited engagement at a modest price that adds value at minimum risk. I am not a fan of conducting this work for free as doing so tends to diminish one’s brand value. These entry-level projects are typically diagnostics that help the client validate the nature and scope of a perceived problem. It is a useful way to solidify a working relationship with a goal to stimulate further engagements.
If building relationships is an optimal way to generate new business, giving gifts is an effective way to establish a relationship. Offering gifts is aligned with established cultural norms that convey respect and appreciation. Giving a gift invokes the concept of reciprocity, another cultural norm which creates a perceived obligation for the recipient to respond in kind. Hopefully, the recipient will feel obligated to give you a fair opportunity to pitch your business, if not actually contracting your services. Whereas gifts of intellectual property may provide immediate value, smaller physical items with your company logo and contact information will serve as a constant reminder to the prospect. Limited engagements at a lower cost, while not necessarily considered a gift, is an effective way to solidify a relationship. These engagements can serve as a foundation for larger, more profitable contracts. In conclusion, while you are attempting to establish a relationship consider the viability of tangible and intangible gifts to facilitate the process.
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North Fulton Business RadioX Interview, September 26, 2019
Author of: Fighting Alligators, Job Search Strategy For The New Normal