As people relocate, their needs, purchase behaviors, and spending habits change dramatically across a broad spectrum of products and services. During this period of increased spending and brand switching, it is critical for brands to reach current and prospective customers with the right message ahead of the competition.
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In our latest issue of EngageNow, we discuss the latest in New Mover spending and migration trends.
Movers are a lucrative target for retailers. Throughout the move process, consumers will, on average, engage 71 new brands and spend approximately $9,000 within the first 3 months of moving. As homeowners list and sell their homes, and then relocate, their needs and purchase behaviors change dramatically.
Topics: New Movers
Movers, with their propensities for heavy spending and brand switching, are a valuable consumer segment for brands across a wide-range of industries. Unfortunately, many marketers are locked into conventional marketing strategies that see movers as a monolithic group, focus on cost savings rather than return-on-investment, and view mover data as a marketing cost rather than a strategic investment.
Speedeon Data is pleased to announce the launch of “Data Dialogues” - an on-going web series covering a variety of topics concerning data analytics, database marketing, and other content relevant to achieving marketing success in today’s data-driven world. To view “Making The Most of Mover Marketing” and future episodes of Data Dialogues, please visit our Youtube channel at https://www.youtube.com/user/SpeedeonLLC.
On March 3rd, Speedeon Data moves into its new headquarters. Along with our growing list of clients, our company has been growing as well. After nearly six years, we’ve run out of chairs in which to sit and conference rooms in which to meet. So we’re heading to bigger and better appointed surroundings.
Last week, Speedeon Data took part in another successful Customer Relationship Management Conference in Chicago. Thank you to our hardworking friends at CRMC who put on another outstanding event. I also want to thank Joe’s Stone Crab, our cohosts, Harte-Hanks and Kobie Marketing, and everyone who attended our networking dinner on Tuesday evening for making the event such a big success. Hopefully everyone enjoyed themselves as much as I did.
This April, Speedeon Data is celebrating its 5th Year Anniversary. Providing the highest quality contact data, delivered expeditiously through the most innovative data products and services, has not always been the easiest path to follow or the most profitable short-term strategy. But it has been the formula and the unique value proposition that we have consistently maintained over the past five years.
With new homeowners spending on average $9,000 and renters spending on average $4,000 prior to and following their relocation, pre-movers and new movers represent a lucrative market for companies offering a wide spectrum goods and services.
Have you ever found yourself driving along without a clear idea of where you’re going or how you are going to get there? Unless you’re simply meandering about the countryside on a casual Sunday afternoon, you probably wish you had some navigational tools, such as a GPS unit, a map, even a compass.
According to Realtor.com’s Real Estate Data Trends for June 2012, key indicators suggest that the country’s housing market has turned the corner and is heading down a slow, but steady path to recovery. However, the report later cautions readers that despite lower inventories, rising list prices, and a generally faster moving marketplace, real estate markets remain fragile and the emerging recovery could be undermined by adverse economic events or loss of consumer confidence.
According to an article*1 in the May issue of Deliver Magazine, new homeowners purchase more products and services in the first 6 months after moving than an established resident spends in 2 years. The average new homeowner spends more than $9,000 on purchases within the first few months of a move, and the average renter spends close to $4,000. And new residents establish an average of 71 new business relationships in their first few months.
A recently married, college educated man in his late-twenties moves from a downtown apartment to a single family home in the suburbs. An affluent woman in her mid-sixties moves from her high-end, single family home in the Midwest to a condominium in Florida.
When it comes to comedy and new movers… timing is everything.
Like a great punch line, a successful new mover campaign requires that the right message be delivered to the right audience at just the right time.
When it comes to new movers, the common approach is to communicate with movers as soon as they relocate; to reach them while they are unpacking boxes. But this isn’t necessarily the best strategy.
Movers have defined, need-based purchase patterns regarding certain products and services before and after their move. For example, movers don’t consider new flatware in the first forty-eight hours after a move. At the same time, waiting two weeks to offer cable TV service won’t work either. Some retailers vary offers based on the time since relocation. A major “Do-It-Yourself” home improvement chain has a set strategy of communicating special offers on items like trash cans within the first week of a move, and on painting supplies and similar items at the end of the first month following a move.
When embarking on a new mover campaign, consider a data provider who maintains comprehensive, accurate and timely new mover data. A data provider who is able to append demographic data or modeled demographic data will further enable you to more effectively message communications and target offers to the right new mover audience. The idea is to test and understand when movers are most receptive to the offer after the move. It can be the most critical element when staging a mover campaign…and that’s no joke.
When it comes to new mover mailings (and other direct mail programs for that matter), if you want to increase your responses, you are likely going to increase your direct mail quantity. More is better – Right? Not necessarily. Direct mail costs are mostly fixed and linear, and the probability of an additional new mover responding is diminishing.
So how do you get more responses or at least maintain responses with fewer pieces of direct mail? The answer is…with modeled data.
By utilizing a modeled new mover program that combines new mover data with modeled zip+4 data, direct marketers are able to segment new movers based on their relative likelihood of response. This enables marketers to increase or decrease the number of mail pieces according to factors such as cost and response rate. Ultimately, a modeled new mover program facilitates greater optimization of costs, improved predictability of response, and increased new mover program success.