Small businesses can woo their biggest customers with the personal touch this Christmas, according to a new report.

The report, by Royal Mail, claims that smaller businesses can capitalise on Christmas because they are better than large companies when it comes to choosing gifts for current and prospective customers.

Figurers show 28 per cent of larger companies only receive a gift from suppliers once a year, but 58 per cent feel that small businesses are better at thinking through their gift selection, an advantage that can pay dividends into the new year.

34 per cent of respondents said they would feel that their business was really important to a supplier if it sent a personal package containing a gift specifically designed with them in mind.

Tim Rivett, head of small business at Royal Mail, said: “A key part of keeping hold of business is to get to know customers at a personal level, and talking to them as an individual is a very simple and effective way to tell customers that their business is important. Christmas is a great time to do this.”

Interestingly, 82 per cent of leaders of larger firms would actually prefer a gift that is for the business, rather than specifically for them, highlighting the importance of strengthening contacts at this time of year.