There is overwhelming data that supports an investment in a “New Home Owner” or “New Mover” program as a profitable and viable marketing decision. According to NAHB (National Association of Home Builders), analysis shows that during the first year after closing, a typical buyer of a new single-family detached home tends to spend an average of $10,601 on products and services. This is 2.6 times more than a typical household spends. A buyer of an existing home spends an average of $8,233, which is still twice the yearly spending of a typical homeowner.
It’s understandable that appliances, furnishings, and remodeling on new homes will exceed the average spend than homeowners who have lived in their residence for a while. New owners are also more likely to purchase other items than just those associated with moving into a new residence. This is because moving into a home is not only one of the most exciting events in their life, it’s also one of the most stressful events in their life. Along with the exiting feeling of starting a new life in a new neighborhood, the anxiety and stress associated with moving is also why a new home buyer is more willing to try new things and even be open to switching their preferred brands that they’ve been loyal to for years.
Buying a new home is frequently the result of a major change in the family or lifestyle such as having children, being newly married or divorced, accepting a new job opportunity, or possibly downsizing when children leave the nest. It's during this time that people will most likely be ready to change a habit or try something new, this is why consumer loyalty to specific brands are tested during this period. It's been shown that new movers are twice as likely to change brands or services than people who have not recently moved. Such movers are even more likely to change their favorite brand of toothpaste during this time than any other time.
During this phase, consumers are more open to new ideas and ways of doing something because everything seems different — including meeting new people who have a different view on life than what they’re familiar with. This window of opportunity may last a few months to over a year, depending on the individual. Everything from trying new stores, updating or changing life or health insurance, switching banks or even brands of automobiles is a choice many make during this time.
For most large companies, a new mover program is a valuable piece of their marketing, but if you own a small business and only have a limited budget on advertising, a new move program can be very economical and powerful. Remember, after awhile, routine settles in an your potential customers will have their morning ritual down and are back into a familiar habit as they become a regular consumer with closely held beliefs, brands and habits that are hard to break.
A new mover program is perfect for dentists, doctors, hair and nail salons, spas, gyms, landscapers, churches, pest control, plumbing, pool and AC service companies, furniture retailers and restaurants, to name a few.
If bringing new customers to your business is a goal for 2018, reaching out to new home owners is a way to start off the new year right!
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