Segmentation

New Homeowners Spend $10,000+ in Their First Year

Are you reaching this undervalued consumer segment?

Author

Kurt Whitmer

President at Database Marketing Group

Monday, October 21, 2019

New Homeowners Spend $10,000+ in Their First Year

According to the USPS, 43 million people in the U.S. move each year, creating a unique, but often overlooked and undervalued customer acquisition opportunity. 62% of these new movers don’t go too far, staying within the same county. Why should you care about new movers? Home buyers are spending $10,000+ in their first year alone on everything from home improvement, furniture, appliances, home security, and more.

Know who’s establishing their home sweet home

New mover lists are a hot commodity for marketers looking to acquire new customers and establish brand loyalty when consumers are in buying mode – the perfect environment to create new brand loyalties and high lifetime value relationships. New homeowners live in their new home on average 5-7 years.

Remember: not all new mover data is created equal. Be diligent with your questions before buying data lists. Questions such as: Is the data sourced and cross referenced from multiple sources? How frequently is their data updated? Are you able to segment the data to create a truly 1:1 message and offer? Data waste can negatively affect your ROI and be upwards of 28% of many industry leading data provider lists.

Reaching them first when they are making their decisions

Speed, speed, speed. Select the data provider that can get your message in front of new movers FIRST. Industry data shows that new movers are 5x more likely to become long-term loyal customers if you reach them first.

Making impactful connections

Make sure your new mover data list can be segmented: new homeowners vs. new renters, home values and other demographics. Segmentation allows you and your team to customize messaging and offers, dramatically increasing engagement & conversion.

Direct mail is still the quickest way to reach this consumer group and should be your initial touch point, but because consumers are more apt to do their research before purchasing products or services, it is recommended to pair this with a digital component as well. For a multi-touch direct mail and digital campaign, IP targeting (digital banner ads) has been proven to increase brand awareness and consumer engagement, as industry data shows that 77% rely on online sources to research and make choices.

Data providers can make or break your campaign

All marketing campaigns should be data driven, this has become an industry established rule. Data waste is often the most overlooked cost when evaluating the success or failure of a direct marketing campaign. As data becomes more and more important to the success of a campaign, here are some tips to remember when selecting a data provider:

  1. How often is their data cleansed and are you able to segment? New mover data should be updated and cleansed on a daily basis and segmentation is a must, in order to achieve the 1:1 messaging consumers have come to expect.
  2. Multi-sourced data – This allows the data provider to cross reference different databases to ensure the deliverability and accuracy of the data.
  3. Do they append their data and maintain good data hygiene? Updating and suppressing against databases such as the NCOA, do not mail, etc. can help reduce waste and even prevent fines.

Note: These above practices such as segmentation, data hygiene practices, data appends, deliverability checks should be done to your own consumer databases as well.