Marketing to the New Homeowner

Submitted by support on Fri, 07/06/2012 - 15:44

Re-posted from Deliver Magazine, May 2012 Issue

by Allan Nahajewski

With a battered U.S. housing market finally showing signs of recovery, marketers have growing reason to be hopeful about renewing efforts to reach what has traditionally been a reliable and coveted consumer group — new homeowners.

Why are homeowners so desirable? Because they represent a diverse group with one common trait: They are ready, and often need, to spend. For large brands, new homeowners represent a chance to score sales on big-ticket items (think appliances, furniture, etc.). For smaller, local businesses, this consumer group offers a chance to tap new revenue streams and foster loyalty among a fresh customer base.

“Narrowing down mailing lists based on specific attributes that relate to a physical location can be one way to target new homeowners. For example, one can mail to recipients who have recently changed addresses or who have been registered at an address for a short period of time. Another method would be to target areas that have a high volume of new construction.” -- Cynthia Fedor, Marketing Team Lead, QuantumDigital

Consider this:

  • 35%of new homeowners purchase bedding.
  • 33%of new homeownerspurchase lawn equipment and tools/hardware.
  • 50%of new homeowners purchase home decorations and accents.
  • 15% of new homeowners purchase computers, home security and automobiles.
  • More than half of home-owners purchase at least one appliance, and more than one-third purchase flooring.
  • 30 million different U.S. households change residence every year.
  • 35% of families plan to or will move into a new home after having their first child.
  • New homeowners purchase more products and services in the first 6 months after moving than an established resident spends in 2 years.
  • The average new homeowner spends more than $9,000 on purchases within the first few months of a move, and the average renter spends close to $4,000.
  • Within several weeks of their moves, nearly 60% of homeowners and 40% of renters purchase furniture.
  • New residents establish an average of 71 new business relationships in their first few months.

New homeowner leads are unique because they come into a neighborhood with specific needs, but probably without specific store loyalties. Doesn’t that sound like an ideal audience ready to absorb your direct mail message?