I talk to contractors everyday who can tell me everything there is to know about their best customer. But as the conversation moves along, there is one aspect of their market that I always educate them on because they never seem to focus on this type of client or customer…
New movers represent a black hole to many contractors, but to the smart construction companies out there who spend a portion of their marketing budgets catering to this demographic, the return is absolutely ridiculous!
The big deal about new movers
Did you know:
- New movers typically represent about 25%-35% of your local market
- New movers, on average, spend more on their homes in the first 5 months than they do over the next 5 years.
- New movers are influenced by your advertising, not referrals.
- New movers have no idea who you are, how long you have been in business, or how many people you have worked for over your 40 years in business. In other words, you mean nothing to them, so your “everyone knows me” excuse for not marketing falls squarely on its ass right about now.
- You need new movers to replace your former clients or customers who moved, died or went with your competition.
But what do new movers buy?
If you took a sampling within the first 8 months, 100 new movers will need:
- Electrician 30% of the time
- A new fence 18% of the time
- Masonry services 15% of the time
- Plumber 28% of the time
And I am not talking chump change here. On average, those same 100 new movers will spend:
- 72% – Between $10-$25k
- 14% – Between $25k-$40k
- 6% – Will spend over $40,000
Now, there are only a few ways to get after these types of prospects and you need to have a consistent marketing program in place to make sure you are hitting each batch of new movers as they migrate into your area each month.
Depending on your particular industry, direct mail, YP or search marketing will give you access to these hyper-active buyers who have cash in hand and NEED to buy. But, If you prefer to keep thinking that everyone knows you, just ask yourself, what are you doing to replace the 25%-35% of those people each year who die, move or shop else ware?