Why Giveaway-Based Marketing Works

Traditional advertising is costly and often yields low returns, especially for brick-and-mortar businesses with high CAC. CliquePrize®’s giveaway iPhone mobile app offers a smarter approach by targeting prospects in your local area as well as your existing customers—especially those most likely to return and recommend your small business. This reduces the need for expensive broad campaigns, lowering CAC while building a loyal customer base that drives word-of-mouth referrals. With CliquePrize®, you can create compelling giveaways that strengthen customer relationships and attract new patrons affordably.

To illustrate the power of Giveaway marketing for brick-and-mortar small businesses, consider these statistics on customer acquisition costs (CAC):

• Acquiring a new retail customer costs $150-$250, while retaining an existing one costs $20-$40. (Statista)
• Small Businesses with high customer retention reduce CAC by 30-50%, boosting long-term profitability. (McKinsey & Company)
• Loyal customers have a 45% lower CAC than new customers due to repeat purchases and referrals. (Forbes)
• Referred customers, often gained through loyalty campaigns, cost 25% less to acquire than those from paid ads. (Nielsen)
• Repeat customers spend 31% more per transaction than first-time buyers, offsetting acquisition costs. (KPMG)
• Effective loyalty programs can lower CAC by up to 20% while increasing customer lifetime value. (Accenture)

Giveaway Strategies by Core CliquePrize® Small Business Category

Below, we outline how to implement CliquePrize® giveaways for key brick-and-mortar categories, tailored to their average profit margins to maximize ROI.

Bars & Restaurants (Average Profit Margin: 10%)

• Revenue: $450 (10 converted leads at an average profit margin of $45 each)
• Fixed Costs: Prize cost of $50, Promotion cost of $200, and Leads cost of $100
• Net Profit: $100 (Revenue minus total fixed costs)

Hair Salons / Nails (Average Profit Margin: 20%)

• Revenue: $1,200 (10 converted leads at an average profit margin of $120 each)
• Fixed Costs: Prize cost of $50, Promotion cost of $200, and Leads cost of $100
• Net Profit: $850

Gyms / Fitness / Kickboxing / Pilates / Yoga (Average Profit Margin: 17.5%)

• Revenue: $1,200 (10 converted leads at an average profit margin of $120 each)
• Fixed Costs: Prize cost of $50, Promotion cost of $200, and Leads cost of $100
• Net Profit: $850

Party Centers (Average Profit Margin: 10%)

• Revenue: $1,000 (10 converted leads at an average profit margin of $100 each)
• Fixed Costs: Prize cost of $50, Promotion cost of $200, and Leads cost of $100
• Net Profit: $650

Karate / Swim / Music Schools (Average Profit Margin: 20%)

• Revenue: $1,440 (10 converted leads at an average profit margin of $144 each)
• Fixed Costs: Prize cost of $50, Promotion cost of $200, and Leads cost of $100
• Net Profit: $1,090

Skincare & Dermatology (Average Profit Margin: 30%)

• Revenue: $3,600 (10 converted leads at an average profit margin of $360 each)
• Fixed Costs: Prize cost of $50, Promotion cost of $200, and Leads cost of $100
• Net Profit: $3,250

MedSpas & Tanning Salons (Average Profit Margin: 22.5%)

• Revenue: $1,012.50 (10 converted leads at an average profit margin of $101.25 each)
• Fixed Costs: Prize cost of $50, Promotion cost of $200, and Leads cost of $100
• Net Profit: $662.50

HVAC (Average Profit Margin: 10%)

• Revenue: $1,000 (10 converted leads at an average profit margin of $100 each)
• Fixed Costs: Prize cost of $100 (note the higher prize for this category), Promotion cost of $200, and Leads cost of $100
• Net Profit: $600

Bridal Shops (Average Profit Margin: 15%)

• Revenue: $2,700 (10 converted leads at an average profit margin of $270 each)
• Fixed Costs: Prize cost of $100 (note the higher prize for this category), Promotion cost of $200, and Leads cost of $100
• Net Profit: $2,300

Real Estate Open Houses (Average Profit Margin: 15%)

• Revenue: $3,000 (10 converted leads at an average profit margin of $300 each)
• Fixed Costs: Prize cost of $100 (note the higher prize for this category), Promotion cost of $200, and Leads cost of $100
• Net Profit: $2,600

How to Implement Giveaways with CliquePrize®

• Step 1: Collect Customer Data

Use CliquePrize®’s one-click to enter iPhone app to gather emails and phone numbers. Offer immediate rewards (e.g., “Enter now for a free coffee!”) to overcome spam concerns, and ensure entries are quick via in-store tablets or online links

• Step 2: Use CliquePrize®’s Tools

CliquePrize® simplifies data collection, building lists effortlessly. Small businesses typically double their lists in 90 days. Post-promotion, purchase records on an optional basis at $1 each for ongoing marketing.

• Step 3: Engage Regularly

Send 1 bi-weekly message about giveaways or promotions via SMS Text Messaging with 99% open-rate texts. Keep messages valuable to maintain opt-out rates below 3%, driving up to 3x more visits.

Its crucial to note that Prizes are Tax Deductible when used for giveaways and marketing purposes.

Get Started with CliquePrize®

Lower CAC and grow your brick-and-mortar small business with CliquePrize’s Plans A and C, starting at $29 for first-time sponsors, plus optional $1 per record post-promotion (no duplicates).

🚀 Ready to take your marketing to the next level? Download the CliquePrize® app and create a FREE Sponsor Account today!

CliquePrize®*** is the iPhone Giveaways mobile app that helps Small Businesses grow by reaching, nurturing and converting local, high value prospects. If you have any questions or feedback, please let us know!***