FROM LOCAL TECHWIRE.COM: "LOOKING FOR CUSTOMERS AND GROWTH? DON'T UNDERESTIMATE THE NEW GUYS AND GIRLS IN TOWN"

By Brian Mattingly, Special To LTW

Editor’s note: Brian Mattingly is president of Welcomemat Services Inc., which specializes in connecting organizations with new residents.

New resident marketing is quickly becoming recognized as an extremely valuable strategy.

The often ignored, but powerful market of consumers called “New Residents” all have one thing in common – they are looking for businesses.  These consumers are actively seeking restaurants, health care providers, entertainment, auto care …the list goes on and on.  

Just consider yourself for a moment.  If you were to move to a different city, or even a different part of this city, your whole routine would change.  Your favorite car-wash is no longer around the corner, so you would need to find another one.  The gift shop where you get your last minute gifts is now 3000 miles away, so you would need to find another one. In fact, you may end up searching for dozens of new businesses to patronize.  

It is easy to see why as a new resident, you have become a part of the hottest new market segment available to businesses.  

While moving could mean a transfer from California to North Carolina, there are plenty of people that move to new neighborhoods within the same city. These movers are almost as susceptible to changing loyalties as someone who moves across many states. According to a study by the Yankelovich Group, movers change things as personal as their toothpaste 40% of the time! This is because they are already in such a mode of change from their move that they are open to any change.

Realizing the enormity of capturing a new resident’s attention should be a main focus for many businesses.  Their worth is prized because of their immediate needs and tendency to become loyal.  New residents quickly establish routines, and businesses who recognize that want to become a part of those routines.

The lure of new revenue

New residents really do want to become regular customers, and because they have no idea where to dine, shop, bank or even get healthcare, they are actively looking to fill their daily needs.  When local businesses attract a new resident, this is an incredible boost to their bottom line. For instance, one new resident who becomes a loyal customer for the neighborhood bar and grill could mean an additional $600 per year in new revenue. For the dry cleaners, it could be $1200 in new revenue, and nearly $4000 per year in new revenue for the local grocery.

The power of new residents as consumers is even more evident when comparing them to residents who have lived in the same area for many years. The established resident has built relationships with businesses in his or her neighborhood. They shop at the same stores and eat at the same restaurants. While these established residents may respond to a coupon, they are typically going to enjoy the money saved on a coupon one time and ultimately go back to the businesses where they feel most comfortable.  

It is also important to recognize that because one in five Americans move each year, businesses lose 20% of their loyal customer base each year due to these customers moving out of the area. Therefore, reaching out to new residents becomes critical to success.

Just as in markets such as Atlanta and the research Triangle, recent growth in Charlotte has opened up enormous opportunities for local businesses seeking out new customers. In nearly all Charlotte zip codes, an average of between 200 and 300 new residents settle in each month. Some of the highest growth areas in Charlotte see nearly 500 new residents each month.

All this moving around leaves new residents with a dilemma. How do they choose which businesses in their new neighborhood they will patronize? Recommendations from neighbors are not quickly gotten since they haven’t met them yet. In fact, with today’s busy lifestyles, they may never meet their neighbors.

Strike quickly

The secret to capturing these long-term loyal customers is by reaching out to them directly and personally before your competitors do. Research shows that contacting new residents within 60 days of their move is 80 times more successful than contacting established residents.

From any perspective, new movers are some of the most powerful consumers in the country. Businesses that realize that consistently getting themselves in front of these people shortly after a move will tremendously increase their revenues and add significant dollars to their bottom line.