New Study Reveals Why, How Local Merchants Should Target New Movers

Unique Buying Patterns of New Residents Make Them a Goldmine For

Restaurants, Pizza Shops, Auto Repair and Other Small Independents, Report

Says



Jul 21, 2006, 01:00 ET from Moving Targets

    PERKASIE, Pa., July 21 /PRNewswire/ -- Individuals moving into a
 community, due to their unique attitudes and unsettled buying patterns,
 represent an unparalleled opportunity for small local retailers according
 to a new report issued today by a leading U.S. New Resident Direct
 Marketing firm. The report also explains how to win over these prime
 prospects with offers tailored specifically to the needs of new movers.
     Moving Targets, a company which specializes in new resident direct
 marketing strategies, issued the report entitled "How to Overcome Retail-
 Customer Erosion by Capturing New Residents." The report is available, at
 no cost at www.movingtargets.com.
     Because new residents typically move due to a major life transition-
 marriages, new jobs, births, retirements, and divorces are common
 reasons-they leave families, couples and individuals with a host of new
 challenges, the report states. Not only are new movers often lonely and
 unsure in their new surroundings, but all the social and community
 connections they had before, from neighbors and friends to dentists and
 hairdressers, are now severed and must be replaced.
     Hyperspending Period
     According to research cited in the study, movers go through five stages
 of transition during a move: Separation, as people say goodbye to their old
 connections; Transformation, the physical aspect of the move; Early
 Integration, encompassing the first six months in the new community; Later
 Integration, the subsequent period of adjustment; and Maintenance, the
 indefinite period once the resident is finally settled in.
     It is during their Transformation, Early Integration and Later
 Integration stages that new residents represent the immense opportunity for
 local retailers, the report notes. According to the U.S. Postal Service,
 this period represents a time of "hyperspending" as movers buy everything
 from new drapes to Chinese carryout. On average, new residents spend $7,100
 for goods directly attributable to their relocation. During the first 24
 months after a move, an estimated 80% of new residents will try new
 products and services from local businesses.
     Customer Replacement
     "How to Overcome Retail-Customer Erosion by Capturing New Residents"
 also demonstrates how targeting new residents is the most effective way to
 replace the 20% to 40% annual customer turnover rate that typical small
 retail operations face. The cost of this turnover isn't insignificant.
     For example, the "lifetime value" of an auto repair shop customer,
 i.e., the amount of net profit an auto repair business can expect from an
 average customer based on current turnover rates, is in the neighborhood of
 $1,706.00. Finding and keeping customers at the lowest possible cost,
 therefore, is perhaps the single biggest profit challenge for small
 retailers.
     "Compared to the minimum 20% of customers who leave a merchant in any
 given year, the 80% of new movers who are actively searching for a business
 they can be loyal to is highly encouraging," said Jay Siff, chief executive
 officer of Moving Targets. "Because new movers need an auto repair shop
 they can trust as much as they need a good dentist or family doctor, it's
 clear that new movers are the number one source for active, engaged and
 available prospects."
     The Moving Targets study reports the following facts about new movers:
     * 62% eat pizza;
     * 65% of female new residents are anxious about finding a good
       hairstylist;
     * 67% say it's difficult to find an honest auto repair shop;
     * 80% redeem gift certificates offered by local merchants; and
     * 98% appreciate gifts or offers from local merchants.
     "Surprisingly, new residents are never contacted directly by most local
 businesses. This situation, combined with the fact that most of America
 moves every five years on average, represents a significant opportunity for
 local independent businesses who wish to grow and profit," Siff added.
     "How to Overcome Retail-Customer Erosion by Capturing New Residents"
 includes practical strategies for reaching these highly desirable
 prospects. To receive a free copy, or for more information about Moving
 Targets' services, please call 1-800-926-2451 or visit
 www.movingtargets.com.
     About Moving Targets:
     Founded in 1992, Moving Targets is one of the nation's leading
 providers of new resident direct marketing programs for small businesses.
 The company's marketing programs, tailored to the needs of restaurants,
 pizzerias, and automotive services including repair shops, car washes, oil
 change/lube shops and others, focus on free merchandise/service giveaways
 to encourage trial use. Since its founding, Moving Targets' clients have
 given away over $517 million in free gifts to new neighbors in their
 communities, generating an 87% overall success rating. For more
 information, call Moving Targets at 800-926- 2451 or visit
 www.movingtargets.com.
 
 

SOURCE Moving Targets