Why Customer Loyalty Programs Targeting New Movers are Smarter Than Groupon
As the uncertain economy continues to throw curve balls at business owners and consumers alike, customer loyalty programs have emerged as a way to develop long-term clients. According to the 2010 Accenture Global Consumer Survey, 52 percent of respondents opted into customer loyalty programs in 2010, compared with 45 percent in 2009.
Even if you already have a customer loyalty program, it's important to analyze and target the correct customer demographics, along with the various types of loyalty marketing platforms, to ensure you're building the right program for your company. Attracting the right customers will benefit your business in the long run.
New Movers: An Example Demographic
One way to implement a successful customer loyalty program utilizing customer demographics is to specifically target new movers, people who have recently transitioned into your market area.
Despite the economy, moving is still common among Americans, whether they are young and seeking change, relocating their families for work or ending a career and retiring. The U.S. Postal Service reported that there are over 43 million address changes processed in a year. New movers are a prime demographic to target as they tend to create an increase in household spending.
The new mover demographic is a group of consumers who are seeking out businesses and services to fill their daily needs. Data suggests that new movers are five times more likely than established residents to become loyal. Anecdotally, a woman in North Carolina contacted me at our office headquarters and told me her family had relocated to North Carolina due to her husband's job transfer. Shortly after they arrived, her husband left town for job training and she was forced to acclimate to the new community on her own. A local restaurant sent her a gift certificate welcoming her to the neighborhood and inviting her and her kids for a free dinner. As a result of the restaurant's hospitality and sincerity, she and her family have visited the establishment a couple times a month for the past 10 years. If she hadn't received that one-time significant invitation to try the restaurant, she may well never have visited.