The payoff for hitting a moving target

There are a lot people on the move right now. There are families moving from their owned homes to rental properties as a result of the foreclosure crisis. Others are moving from one town (or part of town) to another because of a change in employment. And there are even some folks who are taking this opportunity to “upgrade” their homes because of the great values available right now. Not to mention the seasonal- and stimulus-related movers: People entering the career job market for the first time, and first-time home buyers who are discovering attractive incentives to home ownership.

The reason you should be thinking about this? The first reason is that relocation, itself, creates somewhat of its own economic ecosystem. And we’re not just talking about the folks who dine out frequently during the days leading up to and following the move (the appliances are on a truck, so you can’t cook!). A recent story in Marketing Daily suggests that families will spend $7,300 on everything from window treatments to takeout meals in the three months following a move. And the spending remains strong long after the move: They spend an average of 52% more than non-movers on home décor and furnishings in the first year in their new digs.

There is another, even more important reason you should think about these folks: They’re moving away from lots of stores and service providers they used to do business with. In effect, they’re “up for grabs.”

Implications: There are significant challenges to “hitting a moving target.” But for the companies who succeed, there are significant rewards. If you’re a restaurant, grocer or convenience store, you can replace the needs once met by a kitchen whose utensils have been boxed-up. If you sell home improvement supplies, you enjoy the dual-opportunity of people who have a home to touch-up before they depart, and who aspire to make a home of the house or apartment they’re moving into.

But hitting a moving target can hold great opportunity for more than just the restaurant, convenience store, or home improvement warehouse. Because when someone moves into a new home, it is almost always in a new neighborhood: That consumer is no longer as close to their old bank branch, pharmacist, supermarket, convenience store, coffee shop, dry cleaner, hardware, fitness club…

Many of your prospects (consumers) are on the move. Are you keeping up?

Mike Anderson