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Targeting new movers represents a significant opportunity for local businesses to grow, profit and reach a captive audience, states a new study by Perkasie, Pa.-based direct marketing firm Moving Targets. The study reveals when’s the best time to target new movers, why it’s critical and what kind of services movers are looking to tap into.
New residents typically move due to major life transitions – marriages, new jobs, births, retirements and divorces are common reasons. These new movers often have a host of new challenges, the report states. Not only are new movers often lonely and unsure in their new surroundings, but all the social and community connections they had – from neighbors and friends to dentists and hairdressers – are now severed and must be replaced.
According to the study, movers go through five stages of transition:
Separation
Transformation
Early Integration
Later Integration
Maintenance
The most interesting part of this study was the information on when it the best time to capture new mover’s attention. According to the report, it’s during their transformation, early integration and later integration stages that represents the best opportunity for local retailers to reach out to new movers.
The U.S. Postal Service calls this time period, “hyperspending” as movers buy everything from new drapes to Chinese takeout. On average, new residents spend $7,100 for goods directly attributable to their relocation and during the first 24 months after a move, an estimated 80 percent of new residents will try new products and services from local businesses.
According to the study, targeting new movers is the most effective way to replace the 20 percent to 40 percent annual customer turnover rate that typical small retail operations face. The study – called “How to Overcome Retail-Customer Erosion by Capturing New Residents” – also reveals that a minimum of 20 percent of customers leave a merchant in any given year.
But don’t fret – there’s still hope. The report also notes that 80 percent of new movers are actively searching for a business to which they can be loyal.
Here are some of the report’s other findings about new movers:
62 percent eat pizza
65 percent of female new residents are anxious about finding a good hairstylist
67 percent say it’s difficult to find an honest auto repair shop
80 percent redeem gift certificates offered by local merchants and
98 appreciate gifts or offers from local merchants
Read other articles in this issue:
Why It’s Critical to Target New Movers
Should You Cut Your Marketing Budget During a Recession?
Newsletter Overview
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