The Ultimate Guide to Customer Appreciation Gifts
Want to show your customers how much you value them? Good idea.
With so many of your competitors fighting for the same dollars, customer appreciation gifts are a great way to incentivize your current customers to keep coming back to your store.
58% of consumers indicated that the most important way a brand can interact with them is through surprise offers and loyalty gifts. That’s important because:
- Getting a new customer is 5x more expensive than retaining an existing one
- A 5% increase in customer retention can boost profits by 25-95%
- Success rate of selling to a new customer? 5-20%. Success rate of selling to a current customer? 60-70%.
- Loyal customers are:
- 5x as likely to repurchase
- 5x as likely to forgive
- 4x as likely to refer
- 7x as likely to try a new offering
With that said, if you want to maximize the impact of your interactions with your customers, a customer appreciation gift may be your best bet.
In this guide, we’ll give you the best strategies for giving customer appreciation gifts as well as the rewards that work best for attracting repeat customers.
How Do Customer Appreciation Gifts Help Build Loyalty?
Customer appreciation gifts are pivotal to fostering customer loyalty because they create memorable experiences and an emotional connection with your customers. Here’s how:
They Strengthen Emotional Bonds
When your customers feel genuinely appreciated, it can help build an emotional attachment to your brand. Emotional attachment is good for business; it accounts for 43% of a brand’s value.
They Boost Appreciation and Drives Referrals
When customers feel appreciated, 80% of people will spend more with the brand, and 87% will recommend the product or service to friends or family members.
They Enhance Customer Lifetime Value
When your gifts lead to brand loyal customers, those customers become, on average, 2.5 times more valuable than new or future customers.
What Types of Rewards Work Best for Repeat Customers?
The rewards that work the best for repeat customers aren’t the ones that keep them coming back once every 6 months. They’re the ones that change their consumer behavior entirely.
Here are a few examples:
- Tiered Rewards That Get Better With Time: Tiered reward systems (like Bronze, Silver, Gold) incentivize customers to keep coming back so they feel fulfilled when they unlock a new level. It creates a natural gamification element that fuels long-term engagement.
- Experience-Based Incentives: Surprise birthday gifts, personalized in-store experiences, or “members-only” tasting events are unforgettable. Experience-based rewards deepen emotional connections and often cost less than discounts.
- Cash-Equivalent Rewards: One of the simplest and most motivating formats is rewards that feel like cash: discounts, store credit, or wallet balances.
- Surprise & Delight Moments: A surprise reward after a customer comes in 3 days in a row or a thank-you coupon “just because” can create powerful positive reinforcement.
- Social or Shareable Perks: Give loyal customers something they can share with a friend (like a referral discount or a “bring a friend” reward).
What Industries Benefit Most From Customer Loyalty Gifting Strategies?
Some of the industries that can use customer loyalty gifts to their advantage are:
1. Quick-Serve Restaurants (QSRs): High foot traffic. Low average ticket size. These businesses thrive when customers come often and bring their friends. Even small perks (like a free coffee after four days of visiting in a row) can keep the momentum going.
2. Boutique Retailers: Loyalty gifting adds a personal touch that helps these shops compete with online giants like Amazon.
3. Specialty Shops (Nutrition, Pet, Hobby): These stores typically see customers every 30, 60, or 90 days. That cadence is perfect for a loyalty strategy that stays top-of-mind and gives customers a reason to skip online shopping and buy in person.
Tips for Giving Customer Appreciation Gifts
Here are some strategies you can use alongside your customer appreciation gifts:
Show Customers You Care
The best gifts to give customers show them you truly care. That means going beyond generic discounts and tapping into what your customers actually want. With the right loyalty platform, you can track purchasing patterns, segment your audience, and tailor rewards based on real data. A well-timed, well-matched gift shows you’re paying attention—and that goes a long way.
Remember the Special Occasions
Special occasions aren’t limited to birthdays. Think: anniversaries, holidays, or even just “we miss you” moments. These unexpected surprises delight customers and create emotional touchpoints that strengthen loyalty.
Give a Gift They Won’t Forget
Generic perks are easy to forget. Unique, thoughtful rewards leave a lasting impression. Whether it’s a custom pet tag for a loyal shopper or a free seasonal drink during the holidays, these gestures make your brand memorable.
Create a Reason for a Return Visit
Loyalty gifts should feel generous and strategic. Think of them as the start of a journey, not the end. Offer a reward that gets customers excited to come back, like loyalty points, collectible rewards, or teaser discounts that build on future visits.
Leverage Your ROI
Not every customer shops the same, so don’t treat every gift the same. Use a tiered loyalty system (like Bronze, Silver, Gold) to match rewards to spending habits. Your most valuable customers get the best perks. It’s smart gifting with a solid ROI.
7 Best Customer Appreciation Ideas for Small Businesses
Below are a few of our favorite examples of customer appreciation gifts you can get for your most loyal customers:
1. A Treat on the House
Everyone loves a freebie. Offer a surprise cookie, side item, or product sample with a purchase. Or, if they’ve been there a certain number of days in a row, offer a free item the next day they come in.
2. Surprise Book Drop
Gift your customers a thoughtful book that connects to your business values. A pet store might send Inside of a Dog by Alexandra Horowitz. A local coffee shop might pick a cozy fantasy novel. Wrap it beautifully and include a handwritten note.
Inside of a Dog by Alexandra Horowitz
3. Plantable Seed Paper Cards
Send customers a thank-you note printed on wildflower seed paper. It’s sustainable, beautiful, and leaves a long-lasting (literal) impression when it blooms. Bonus points if you brand it with a message like “Thanks for helping us grow.”
4. Custom Name-Drop Merch
No, not your logo. Their name. Think: a tote bag, travel mug, or notebook that’s subtly personalized. “Reserved for [First Name] at [Name of Store].” Add an inside joke or brand-specific phrase only loyal customers would get.
5. Mini Wellness Kit
Go beyond the usual gift basket and curate a mini “reset” kit: essential oil roller, soothing tea sachets, a 5-minute journal, or a playlist of guided meditations.
6. Golden Ticket Surprise
Slip a few golden tickets into random orders or gift bags. Winners get a free upgrade, a premium service, or even a secret menu item.
7. Handwritten Story Cards
Instead of a generic “thanks,” write a short card that tells the story of their impact: “You’ve visited us 34 times since 2021. That’s 102 cups of coffee, two new friends you’ve brought in, and one barista you’ve made cry from laughter. We notice. And we’re so glad you’re here!”
If you don’t have the time, this service will automate handwritten thank you cards for you!
Automated Handwritten Thank You Cards
How Can I Personalize Gifts for Loyal Customers Using a Loyalty Program?
The best program for personalizing your gifts to give customers is with TapMango!
With TapMango’s powerful loyalty platform, personalizing your customer appreciation gifts becomes easy, data-driven, and deeply impactful. Our intuitive dashboard gives you a clear view of who your most loyal customers are, how they interact with your business, and what truly motivates them. From audience insights to purchase patterns, you’ll have everything you need to turn raw data into loyalty gifts that delight and show your appreciation!
Want to see how it works? Book a demo and we’ll show you how you can start accelerating revenue by activating your most loyal customers.
FAQs
Are customer appreciation gifts tax-deductible for businesses?
Yes, but with limitations. The IRS allows businesses to deduct up to $25 per recipient per year for customer appreciation gifts. Incidental costs like engraving or shipping don’t count toward this limit, as long as they don’t add substantial value. Items under $4 with your business name permanently engraved and regularly distributed (like branded pens or keychains) are generally not subject to the $25 cap.
Can customer appreciation gifts be automated through loyalty software?
Yes! Modern loyalty software can fully automate customer appreciation gifts based on a variety of criteria. Whether you want to celebrate a customer’s birthday, reward them after a certain number of visits, recognize consecutive daily visits, or even re-engage lapsed customers, loyalty programs can trigger personalized rewards automatically.
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