Research from Rutgers University shows that newcomers are 80 times more likely to respond to a marketing offer than an established resident. Mattingly calls it "The New Year's Effect." Just as a swell of people join gyms at the start of the year, Welcomemat studies show new residents see a move as a time to start a new chapter in many aspects of their lives.
"From a banking perspective, while I may have been unhappy with my banking relationship for a number of years and never changed to a new bank due to the hassle of it, a move will likely inspire me to make that change," says Mattingly.
Charlotte's rapid influx of new residents -- more than 40,000 people a year -- makes it fertile ground for banks that choose to target them. The greater Charlotte region sees on average 4,100 new residents a month, based on data over the past year, says Mattingly. For those banks with nearly national footprints, the U.S. Census Bureau data shows the need for marketing and retention strategies. Roughly 40 million Americans, or 14% of the population, move every year. According to a 2004 survey by the National Association of Realtors, 40% of those movers were first-time home buyers, who are on average 32 years old with a household income of about $55,000. That's an attractive pool for banks that want to capture young clientele who will remain loyal customers for a long time.
For those harried movers, Bank of America Corp., through its Web site, offers an online tool called "less stress moving" to help make the transition easier. Along the way, the bank hopes the partnership established during the move will result in new customers, says spokeswoman Diane Wagner. The site's services give online users a tool to plan the move, including profiles of local school districts, a cost-of-living calculator, utility connections and change of address forms.
Looking for a house? BofA's Web site channels home-seekers to Allen Tate Co.'s site where they can view online listings and hire a Realtor. "We're trying to fulfill a need to make moving easier, and it's a way to reach new customers," Wagner says.
Wachovia Corp. works to capture the transient client base with hopes that its reputation for customer service -- ranked first in the nation by the University of Michigan the past four years -- will attract customers. And the effort begins as early as college, when students arrive on campuses around the nation. Wachovia has a coordinated effort to ensure that students' first banking relationship is with the bank, says Denisa Leach, Wachovia's acquisition banking director for the Charlotte region. Customers who come to the bank as college students "tend to be long-lasting and over time they tend to be loyal and very profitable," Leach says. And how best to capture this group of customers who all move to town in late August?
In Charlotte, it has a presence at Johnson C. Smith University, Queens University of Charlotte, UNC Charlotte, Wingate University, Davidson College and others to help students set up checking and credit card accounts. The bank is on campuses across its service area. Links with employers to attract a more established customer pool that may be moving to its territory, the bank reaches out with a program called Wachovia At Work. Instead of a market-wide approach to reach all newcomers, Wachovia establishes corporate banking relationships with local companies and then extends benefits to new hires, who are often new residents.
