Why New Movers for Direct Marketing & what to look for when acquiring lists

New Movers are
"Super Buyers"
R
Why New Movers for Direct Marketing
& what to look for when acquiring lists.
AAnn LLSSSSIiDDAaTtaA WWhhiittee PPaappeerrINTRODUCTION . Promotion - Advertising across a variety of media depending upon the importance of location will New movers are ideal targets for Direct Marketers. drive spending. Hiring needs in the new location New homeowners and renters invariably purchase a can also drive advertising.wide range of products and services. According to moving.com "People who are moving spend more Identifying residential and business movers allows during the 3 months surrounding their move than Direct Marketers to more specifically target their non-movers spend in 5 years. " Homeowners and audience. renters increase their spending relative to a move as indicated below: NEW CUSTOMER ACQUISITION
Attracting new customers is not an easy task. Research indicates that it costs businesses up to 5 times more to attract a new customer over spending to retain an existing client. Most business however need new customers for growth. For Direct Marketers, New Movers are ideal targets for new customer acquisition. Their propensity to purchase helps to reduce typical sales barriers and loyalty to an existing vendor.
New movers are different breed of prospects due in part to the physical process of moving, breaking the reluctance by many to change. It has been speculated that new movers are four to eight times more likely to respond to direct mail offers than are established residents. "Welcome" coupons and special "New Neighbor" offers can be especially effective as a first step toward converting a new mover into a valuable New homeowners in particular may have held back customer.on purchases just prior to closing their mortgage to protect credit ratings. Upon move-in purchasing NEW MOVERS AND LIFETIME VALUEincreases, creating what some have referred to as Businesses struggle with how to balance costs "super consumers". The initial 4-6 month spike in between customer retention and acquisition. The spending can easily exceed cash outlays over the value of a customer for many is quite clear, defined next few years. primarily by repeat purchases and perhaps other What better targets for Direct Marketing organizations contributors including referral value. Customer than a New Mover? Whether renter or buyer, these Lifetime Value (CLV) can be exponentially greater consumers represent a group that is more willing to than the initial purchase as revenue multiplies over spend than the general population. months or years. This works for small businesses such as the local pizza joint that counts on a family BUSINESS NEW MOVERS purchase every Friday night as well as for larger ticket Businesses that move have slightly different items and business to business sales. requirements. There are certainly basic services and Ongoing business with existing relationships might décor requirements similar to renters and homeowner, indicate that customer retention efforts should be but they also need to advertise. Business new mover optimized over all else. However, other factors come requirements typically include: into play such as natural customer attrition and costs . Printing - Letterhead, business cards and other required via discounts or services to encourage repeat customer facing copy with an address purchases. As a result, most businesses cannot afford to exclusively focus on existing customers.. Graphic design - A move can prompt internal demand for a new look on signage and even website design.New movers change the course of Lifetime Customer WINDOW OF OPPORTUNITYValuation to a certain extent by reducing the costs and effort to establish a new relationship. Lifetime Timing is everything, especially when considering value within the specific business will likely remain a marketing program targeted at New Movers. constant, with additional considerations such as cross- According to noted Direct Marketing author Lester sell opportunities making new customer acquisition Wunderman, suspects and prospects are 2 different potentially even more lucrative. The result is th... [download for more]