Customer appreciation gifts are usually small tokens given to existing customers as a thank-you gesture. They are not typically used to attract new customers, which limits their ability to generate leads. Small businesses, known as Sponsors on CliquePrize®, conversely can leverage Private Giveaways to distribute customer appreciation gifts to loyal patrons. Since these gifts can be digital (e.g., in-store gift certificates), small businesses have the flexibility to offer multiple prizes without additional cost.

However, when it comes to Public Promotions, giveaways always outperform customer appreciation gifts. A Public Giveaway allows small businesses to target both current customers and potential prospects, maximizing reach and engagement. Unlike appreciation gifts, which are distributed without a clear ROI, giveaways enable small businesses to collect valuable customer data, turning engagement into measurable marketing success.

Value Comparison: ARV of Customer Appreciation Gifts vs. Win Prizes

The Approximate Retail Value (ARV) of customer appreciation gifts is typically much lower than that of a prize in a giveaway. For example, a small business might give out branded pens, tote bags, or coffee mugs—items that often cost a few dollars each. In contrast, the average ARV of a CliquePrize® giveaway is over $100 per prize. More importantly, the prize is just a tool to capture customer data, allowing small businesses to grow their marketing list and refine their outreach efforts. CliquePrize® is centered around data capture at a local level, making it much more valuable than simply giving away free merchandise.

Customer Retention: Why Giveaways Create Stronger Brand Connections

Customer appreciation gifts often fail to create a lasting connection with the brand. Many of these items are quickly discarded or forgotten. A branded keychain or t-shirt usually doesn't leave a lasting impression on a customer. In contrast, CliquePrize® Sponsors strategically select prizes that forge a meaningful connection with Contestants. For example, a small business may offer a free trial, a gift card, or an exclusive experience—prizes that drive ongoing engagement and increase the likelihood of future purchases. The best prizes are those that local Contestants genuinely want to win, creating top-of-the-funnel interest in the small business.

Its All About Timing: Giveaway Campaigns Last Longer

One major limitation of customer appreciation gifts is their distribution period. They are often handed out during a single day or a short promotional window, which limits customer participation. Many recipients may not even have the opportunity to redeem their gift. Conversely, CliquePrize® giveaways last an average of one month, giving Contestants multiple chances to enter. The app allows users to enter up to 5 promotions per day with just one click, increasing engagement and registration over time.

Scarcity and Exclusivity: The Power of Random Drawings

Another key difference between customer appreciation gifts and giveaway prizes is exclusivity. Appreciation gifts are often mass-produced and distributed in large quantities—think coffee mugs, t-shirts, and pens. These items lack uniqueness and rarely create excitement. In contrast, CliquePrize® giveaways focus on exclusive prizes awarded through random drawings. Instead of handing out gifts to the first few people who show up, small businesses can generate anticipation and excitement by giving all Contestants a fair chance to win. This approach drives more interest and engagement than simply giving away items to early arrivals.

No Purchase Necessary: The Advantage of a Free Prize Giveaway

A Customer Appreciation Gift typically requires a purchase, meaning only paying customers receive the reward. This limits participation to existing customers and often requires them to spend money before getting the gift. In other words, there are strings attached. In contrast, a Free Prize Giveaway has no such strings attached, making it more inclusive and appealing to a wider audience. Anyone can enter without needing to buy anything, which encourages more people to engage with the small business. This openness helps attract new potential customers, increasing brand awareness and expanding the small business’s reach beyond its current customer base.

While customer appreciation gifts serve a purpose, they fall short in terms of marketing effectiveness compared to giveaways. CliquePrize® giveaways offer businesses a more strategic approach by combining prize incentives with data capture. The higher ARV, longer engagement period, and exclusivity of CliquePrize® promotions make them a superior choice for small businesses looking to expand their reach. Instead of giving away forgettable swag, businesses can offer meaningful prizes that establish stronger brand connections and drive real customer interest.

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!***