Given everything we are hearing in the news, the confidence of customers is at an all-time low and when uncertainty dents consumer activity and footfall declines, it is essential to take decisive action with your marketing engagement plans.
Whilst a decline in footfall during uncertain times might usually prompt businesses to be more cautious with their marketing budgets, focusing less on acquisition and more on nurturing existing in market customers, it is arguably a good time for both.
This is a mindset that focuses on marketing efficiency and is an approach to consider not just in tough trading times, but at as part of your wider business strategy.
Whilst Covid-19 persists footfall will be suppressed for quite sometime. So what do you do as a retailer in this period, when spending on marketing to fewer actual buyers makes little sense?
Well how about concentrating your available marketing spend on consumers that have a need to be in market, despite the virus concerns. An audience committed to a home move, for example, and who actually need your product, now.
The retail value of a homemover
Consumers who are in the process of moving to a new home are nine times more likely to make home furnishing and home improvement related purchases than a non-homemover. These consumers typically spend 50% more on these products and services than those not involved in a house move.
The important point is that even in these uncertain times, the property market is buoyant (up 40% on 2019) and homemovers who are already committed to move, are still in the market to buy from you, unlike other customers whose expenditure may be more discretionary.
When footfall is down and sales are slow, it is time to look to those homemoving audiences that are primed to spend
There are thousands of homemovers every day who are compelled to spend; if you are moving from a one-bed flat to a 3-bed semi, deferring expenditure on the essentials of flooring, white goods and furniture is unlikely to be an option. In short, they have to buy and have to buy now.
The impact can be seen sector and category wide, influencing a large variety of product and service lines, including but not limited to: beds, sofas, kitchens, bathrooms, home appliances, windows and doors, electricals, garden retail, automotive, holidays, utilities, banking… the list goes on.
The increase in propensity to spend from these consumers extends from 6 months before a house move to 18 months after moving day - and for some product and service categories, this period is longer still.
A substantial opportunity
Our Chief Customer Officer, Colin Bradshaw, adds:
"Our proprietary data shows a direct correlation to be found between consumer behaviour and the homemover process, varying across different industry sectors. Through the application of this data and insight, brands can reach consumers at the optimum time when these potential customers are known to be considering a purchase in their category.
And with a homemover cycle typically spanning at least 2 years from start to finish, the increase in captive consumer numbers across this whole period provides a substantial window of opportunity for retailers who make the effort to target homemovers."
To help put this into context further, we know, for example, that furniture buying typically kicks in before people move, DIY shopping peaks at the point of moving in, and electrical goods are bought a month or more after a move.
So if you are looking to shore up revenue and declining footfall take a look at homemovers; you won’t be disappointed.