According to past Epsilon research, consumers typically spend around $9,000 (per household) on goods, services and financial and insurance products when they move into a new home. New movers present a unique, time-sensitive and lucrative opportunity for brands to effectively engage these consumers and retain or gain loyal customers.
Epsilon’s 2015 New Mover Report, which surveyed 963 households that had recently moved, found that new movers were equally split between owners (49%) and renters (51%) for their current (new) home. Home owners’ average income ($77,000) was higher than that of renters ($49,000) indicating that they have more money to purchase a home. Additionally, home owners also have more discretionary income for spending on move-related purchases. 75% of owners made purchases related to the move, compared to only 57% of renters. In comparing owners and renters, it is clear that owners present a greater opportunity for marketers.
Still, the majority of movers expect to spend money and their expectations tend to be in line with their actual spending. The majority of respondents (64%) indicated spending what they had expected to buy related to the move. Further, 85% of responders made purchases related to their move; with 60% waiting to make some household purchases until after the move.
How can brands effectively engage new movers throughout the entire lifecycle of their move?
Marketers need to get back to basics and understand the factors motivating the move as well as what movers are buying and how they’re spending. When developing your new mover marketing strategy, keep the following framework in mind:
- Take a data-driven approach by building a demographic profile
Demographics provide key insight into the reasons behind moving and associated spending patterns. Take a data-driven approach by building a demographic profile of your audience and segmenting on powerful attributes like age and income. For example, if you know the household earns less than $50,000, offer discounts or more affordable service plans. Alternatively, if you know the occupants are high-income earners and homeowners, you can market higher-end luxury household items and upsell additional services.
- Personalize your messaging to each segment.
In general, movers tend to perceive the moving process as stressful and exhausting. Acknowledge the challenging nature of moving in your messaging. Emphasize your product benefits with language that will appeal to the mover such as “easy installation” or “hassle-free.” Also tap into these expectations to establish even deeper customer connections.
- Don’t lose sight of the bigger picture.
While owners present a greater spending opportunity overall, both owners and renters expect to spend money when moving and make the bulk of their purchases after the move. There is a gap between planning and execution. Marketers need to seize this moment and follow through after the move, adopting a full lifecycle approach with the new mover market.
By understanding why the consumer is moving as well as anticipating their buying behavior, marketers can tailor their messaging and capture a larger share of wallet from the tens of millions of movers every year.