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Why Gift Certificates Have More Impact than Coupons

To help draw new customers through your doors, consider offering gift certificates, rather than coupons, to attract new residents.

Every business owner understands the value of doling out coupons. The discounts encourage new customers to visit your establishment, introduce new product lines, and help shed excess inventory, according to Investopedia, an online investing resource. But, offering coupons has a downside. Coupons cost your business money, and customers might wait to make purchases until they have another coupon.

Our Town America, the nation’s leading new mover marketing company, has an easy solution designed to ramp up profits and get new customers into your location. Rather than coupons, Our Town America appeals to new residents by offering an upscale Welcome Package that won’t get tossed in the recycle bin. The tasteful Welcome Package is oversized and designed to stand out from mundane mail. Plus, the offers included in the package are chosen because they line up with the needs of a recipient – therefore increasing the response rate. Every Welcome Package includes free one-time-use gifts, not repeat coupons.

“A housewarming gift that includes proven special offers for local businesses will help welcome new residents to the neighborhood,” said Michael Plummer Jr., President and Chief Executive of Our Town America. “We encourage our partnered businesses to follow up on their welcome gifts with a thank-you postcard to keep their business top-of-mind with busy new residents.”

People who purchase a new home typically open their wallets as they work to make their new residence a home, according to the National Association of Home Builders. For the first two years after closing on a new house, homeowners spend an average of $7,400 more than existing community members, $4,900 of it being spent in the first year after purchase, NAHB reported.

While a big portion of expenditures are on appliances, furniture, and home repairs, new residents also spend the first few months in their new home running errands and learning where to buy groceries, take their pets, get dental work, order pizza, and more. New movers have no established habits or loyalties, making them an impressionable audience for businesses looking for new customers. Including New Mover Marketing in your advertising strategy makes it possible to reach a brand new, broad audience every single month.

“Every time we add a new store, it’s a great decision,” said Tiffany Downing of Broadway Pizza in Maple Grove, Minnesota. “It depends on the market, but we get about 10-60 redemptions per month. We are seeing that people are spending more than we give in the certificate.”

In case you’re still unsure whether implementing New Mover Marketing is the right choice for your business, here are some of the benefits of gift certificates.

Advantages of Gift Certificates

Keep your business top-of-mind
New residents are busy unpacking boxes, painting, arranging furniture, and planting gardens. They are looking for easy, cost-effective options when out in their new community. Our Town America’s upscale Welcome Package is personalized and positioned as a welcoming gift to new residents, so is perceived by the customer as hospitality, not advertising.

Help your business add loyal customers
Gift certificates provide an extra incentive to try a new business risk-free, putting the local business at the top of the list. If you offer a free medium pizza on your gift certificate, hungry new residents will want to place an order as they unpack boxes and organize their new home. As an added bonus, if you impress them with stellar customer service and delicious food, they are likely to become loyal customers.

Increase sales
When customers come to redeem their gift certificate, it’s not uncommon that they will buy additional items, so it’s a great opportunity to enlighten them on your other offerings.

If you’re ready to begin gaining more loyal customers, visit Our Town America today.

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