TIMING : REACH NEW HOMEOWNERS WHILE THEY ARE SPENDING
Statistically, one or two new homeowners walked into your store last week. Two percent will find your store by accident. Wouldn’t it be great to know where the other 98% of them live? New homeowners have the best credit rating during the first forty-five days following their move. They are your best prospect. Targeted marketing works and direct mail is the key to reaching them.
Reaching these homeowners presents challenges. Most advertising can’t specifically target new homeowners. Yellow Page ads generate shoppers, not buyers, and it typically takes weeks for the new homeowner to get their new Yellow Pages. Radio and TV are not density specific and the fact is that not everyone listens to the radio, watches TV, or buys a newspaper -but everyone receives mail.
New homeowner information can be obtained from various sources. However, most information sources are slow, inaccurate and require you to manually log information into a computer to generate direct mail pieces and mailing labels. Phone numbers are rarely available and extremely expensive to obtain when needed for follow up calls or telemarketing efforts.
New homeowners are excellent candidates for home furnishings and remodeling. The furniture retailer, can “get the jump” on this segment of the market and have the best chance of winning loyal customers right from the start. The best source for this information is a reliable mailing list compiler.
According to a recent survey by Welcome Homeowners Magazine of new homeowners buying habits, 72% of new homeowners will spend between $10,000 and $25,000 within the first year after they move. 41% of these new homeowners will buy furniture; 20% within the first thirty days.
Your sales and marketing strategy needs to do more than increase sales. It must leave such an impression on the new homeowner that it creates word of mouth advertising. Advertising done creatively and sincerely, combined with a great mailing piece and an excellent offer will result in ongoing and consistent referrals.
STRATEGY : HOW TO GET TO THE RIGHT PEOPLE? WHY NEW HOMEOWNERS?
A good list compiler will offer weekly new homeowner lists along with detailed information on new home buyers in areas that you target. Lists are generally available on peel and stick labels or magnetic media. Typically, this data is current within 3-10 business days after the deed is recorded.
It is important to reach new homeowners with your special, individual offer before anyone else, but it’s also important to have a good pitch. Your mail piece must grab new homeowners with something important to them. You could take a “neighborly” approach and send a card, flyer or letter welcoming them to the neighborhood. Postcards and promotional items are also effective, but you must get the homeowners’ attention and arouse interest.. This is accomplished by an excellent offer. You might offer a free “house warming gift” in your mail piece such as a plant or a welcome mat to those who come in. Don’t offer a percentage discount. This is less effective in terms of real dollars and most people think of real dollars when they think of buying. Instead, offer a dollar-value coupon; one that does not require a minimum purchase. The purpose of the offer is to get the new homeowner in the store.
If you take the time to create a mail piece, do it right. Make it work. Try something different or out of the ordinary. Offer three free lottery tickets. Coupons, though less imaginative, can be effective. Have a great offer. . . test. Have fun.
When used promptly this new homeowners list will give you the upper hand because new homeowners have not yet formed their new buying habits. Take the offense and beat your competition to this targeted market. A list one or two weeks new is likely to insure that you will be the first in your field to approach the new homeowner.
Be prepared to put your mailing list to immediate use. If you’re using labels, have your mail ready to go so you can mail it as soon as you receive the labels. If you use a diskette, prepare the form letter ahead of time so you’ll be ready to print them immediately. It’s also good to follow up on your mailing with a phone call. If the mailing list company is good, they should be able to provide you with approximately 20 to 40 percent of the new homeowners’ telephone numbers.
The follow up call should be brief and personable. For example, you might say, “Hi, my name is Jack Chambers and I just wanted to give you a quick call and personally welcome you to the neighborhood. I’m the owner of Tables and Chairs, and I just wanted to make sure you received our welcome in the mail.” Or you could say, “I just wanted to know when it would be convenient for you to stop by since we have a little housewarming gift set aside for you.”
Don’t ever forget “the customer” after you have sold them so that they will refer others to you. A direct mail program is an investment and should be tested and re-tested for a reasonable period of time. Track its performance and test your mailing piece. Follow up your first mailing with another one after thirty days. Give your investment a thorough chance. Bear in mind that a good marketing strategy and direct mail program takes time to perfect. Remember, new homeowners are your key to new business.
SALES POTENTIAL : NEW HOMEOWNERS’ BUYING PROPENSITIES
Compiled by Welcome Homeowner Magazine’s study of 2,000 home buyers
| Purchase Tendency | |||
|---|---|---|---|
| Purchase Category | Less than 3 Months Since Moving | 3 to 6 Months Since Moving | 6 to 12 Months Since Moving |
| Bathroom Accessories | 58% | 12% | 6% |
| Bedding and Linens | 41% | 13% | 7% |
| Carpeting and Rugs | 30% | 10% | 16% |
| Draperies | 38% | 10% | 10% |
| Flooring | 20% | 10% | 12% |
| Furniture | 41% | 21% | 11% |
| Kitchen Appliances (Small) | 29% | 11% | 7% |
| Kitchen Appliances (Large) | 23% | 8% | 12% |
| Lighting Fixtures | 44% | 16% | 7% |
| Mattresses | 20% | 8% | 7% |
| Mini Blinds | 33% | 12% | 6% |
| Wallpaper | 20% | 16% | 9% |
SALES LEADS : WHY A MAILING LIST COMPILER?
We realize that as a business owner you have many potential sources to get your leads from.
We just want to remind you that as a mailing list compiler that collects & compiles their data every week, we provide you with two critical strategic advantages:
- Targeting
- Freshness
By targeting,
we mean that we have a wealth of data points to choose from which
allows you to help us define who makes a more likely customer to be; is
it the high end product you provide that fits really expensive homes, or
is it aimed at a certain community and ethnicity?
By asking you the
right questions and tapping your vast knowledge of your own business,
we can customize our data gathering technology such that you only get
the prospects that are within your area of business and likely to
purchase.
This way, you don’t just “blast” everyone and spend lots
of money to get only a “few fish in the net” – you spend less and every
penny goes towards marketing to someone who’s likely to make a purchase.
By freshness,
we refer to that tendency of other lead sources to show off by
impressing you with big big numbers. But what good is it, if your “New
Homeowner” lead has been in the same house for 13 years already? He
doesn’t have the same needs of a family that has REALLY moved in a week
ago into a house where remodeling, carpets, furniture, appliances,
security & technology services may be needed, on top of new services
for family, kids, pets, medical etc. etc.
Why reach an entire
neighborhood, most of whom already know you, than only reach those who
are really likely to be interested in who you are and what you can offer
them, simply because they are new to the area?
Our “freshness”
means that each week we only deal with collecting and disseminating the
data of NEW HOMEOWNERS who have JUST MOVED to THEIR NEW HOME. Capish?
Please
call us or email us and let us know your questions or concerns, we love
business owners – because we are a small company ourselves. We deal
with the same challenges as you and we sincerely want to help you grow,
so we can make a living while helping you do so.
Isn’t that’s what friendly business is all about?
Give us a call or email us at inquiry@homeown.org. We are looking forward to hearing from you.