The importance of marketing to new members of your community cannot be overstated. New movers represent new opportunities other than the ones you have already been targeting with your marketing. Not only do they represent new opportunities simply because they were formerly located elsewhere, but they themselves are probably facing new challenges. Most people move because of a major change in their life. For example, they may be new parents, newly married or recently divorced. There are numerous reasons for someone to change location and these all represent opportunities for your business, but only if you get to them in time.
According to the U.S. Postal Service, movers enter into a period they coined “hyper-spending” shortly after arriving in their new home. During this time period, they will spend an above average amount of money on everything from furnishings to having food delivered. It’s no paltry sum either; the U.S. Postal Service concluded that new movers will spend, on average, $7,100 just on things related to their relocation. Over the first two years in their new location, an estimated 80% of people will also try a local business new to them.
Making Up for Turnover
Obviously, it is a valuable investment to market to new movers. In fact, the study concluded that marketing to new members of your community is the most effective way to make up for losses suffered from the 20% to 40% of customer turnover most businesses face every year. Oddly enough, it appears no one does it. As the Chief Executive Officer of Moving Targets, the company who did the study, noted, “Surprisingly, new residents are never contacted directly by most local businesses. This situation, combined with the fact that most of America moves every five years on average, represents a significant opportunity for local independent businesses who wish to grow and profit” (PRNewsWire.com).
Percentage of Americans Moving Could Increase
With the economy forcing more people to switch jobs or homes, there is a strong likelihood that the number of Americans on the move will continue to be a statistically relevant group to businesses. Between the years of 1995 and 2000, relatively stable ones for the economy, 46% of Americans moved (FastCasual). The aforementioned study found that, when people relocate, 98% of them appreciate free gifts or offers made to them by local businesses. That means between 1995 and 2000, nearly 45% of the country was available to be won over by a local business that made the effort.
Simply mailing out the same offer to all the members in your community will certainly guarantee it ends up in the mailbox of a new resident. However, you won’t be targeting or addressing them specifically. Chances are you’ll also be offering discounts to customers you already have. This is why it is important to use consumer mailing lists that are regularly updated with the names and addresses of new movers. Your business has the opportunity to impress 98% of them with a specific offer and then the first two years to take advantage of the fact that they’re looking for products and services from local vendors.