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