New Mover Study from Epsilon Targeting Reveals Billions of Dollars in Spending Opportunities
$1,200 Spent per Household: Ten Findings for Marketers To Capture Limited Window of Opportunity
DALLAS, TX - According to a recent report from Epsilon Targeting, the leading provider of consumer information for targeted marketing, the number of Americans relocating climbed by 12 percent in the first four months of 2010. This trend results in new spending behavior that can be extremely lucrative but brief for marketers.
According to Epsilon Targeting’s New Mover Report 2010, nearly 4.4 million households relocated between January and April 2010, compared with about 3.9 million in the same period in 2009. These New Movers spend an average of $9,400 per household, according to moving.com, almost 29 percent higher than Epsilon Targeting’s spending estimate based on research conducted in 2007. The New Mover report shows that $1,200 of that spending is earmarked specifically for home décor and other non-moving items – but only for a limited time. Likewise, New Movers shift their spending among categories, pulling back on items such as apparel in favor of furniture and appliances.
“If smart marketers want to capture the growing number of New Movers in the United States today, they need to focus not just on the number of roofs, but on the limited windows of opportunity,” said Don Hinman, Senior Vice President for Data Strategy for Epsilon Targeting.
“Our research shows not only where New Movers increase their spending and where they pull back, but for how long. The figures could improve in the summer – historically our data shows the number of New Movers tends to climb in August.”
To capture this profitable but fleeting New Mover market, Epsilon Targeting encourages marketers to focus on ten critical findings from the New Mover Report 2010:
* Biggest Winners: The top 10 states for growth this decade are Florida, Georgia, South Carolina, North Carolina, Virginia, Tennessee, Texas, Arizona, Nevada and Washington.
* Biggest Losers: Losing population in 75 percent of the 38 quarters researched are New York, New Jersey, Massachusetts, Connecticut, Ohio, Illinois, Michigan, Minnesota, Iowa, Kansas, Nebraska, North Dakota and California. In many cases, they move to sunnier climates.
* Track the moving vans: Early detection of a move is critical, since spending rates per household drop each quarter following the move.
* Exclude bubble wrap: Stripping out the cost of moving, such as vans, packers and boxes, New Movers on average spend almost $1,200 in the year they move.
* Tick, Tock: Most of that moving budget – 28 percent – is spent in the same quarter the New Mover relocates.
* Curtains, yes: The biggest chunk of that first-quarter spending – 33 percent – is earmarked for home décor. Spending on home décor levels off at 20 percent after six months.
* Shoes, no: Spending in the apparel, gift, business-to-business and senior categories declines early in the move and resumes six months after the move.
* Welcome out-of-towners: Many New Movers are coming from different regions, meaning they might not be prepared for the climate and household needs of their new residence. For example, 13 percent of Mountain residents are likely to leave their region, often heading to the Pacific.
* Don’t wait to indulge the DIYer: Tools and electronic sales climb right after a move – to 23 percent – but drop sharply to 15 percent four quarters later.
* Keep children and pets on autopilot: Spending on children, pets, media and charity are largely unaffected by a move.
While housing starts declined in May 2010 due to the expiration of the Federal Housing Tax Credit, job creation is expected to improve the numbers. Economists are predicting that a gradual increase in employment throughout the second half of 2010 will have a positive affect on home sales.
For more information, the New Mover report is available at www.epsilon.com/pr/NewMover2010.
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