Increasing Loan Balances: Utilize Data for Relevant and Timely Messaging

Understanding the unique spending habits and needs of new movers can open doors to growth and customer loyalty for your institution. Dive into our latest blog post for key insights and strategies.

The Spending Habits of New Movers

Recent data from Speedeon Data highlights a significant opportunity for financial institutions: around 36 million people relocate annually, and these individuals tend to be substantial spenders. Within just the first three months after moving, the average spender shells out over $9,000. During their moving phase, they typically engage with about 71 new brands. This transition period presents a unique opportunity for financial services to make meaningful connections with potential customers.

Prioritizing Home and Lifestyle Upgrades

Initially overwhelmed, new movers gradually shift their focus to home improvement and lifestyle upgrades. Early purchases often include new appliances and minor home improvements, creating an ideal opportunity to introduce new credit card offers. As they settle in, larger projects like home remodeling or adding a swimming pool often come into play, usually within 6 to 12 months post-move. Additionally, many new homeowners, having delayed purchasing a new car to facilitate their home loan approval, might now consider this significant purchase.

Life Changes and Financial Needs

Moving often signals significant life changes. Whether it's a growing family needing more space, or individuals downsizing for retirement or after children leave for college, each scenario presents distinct financial needs. These needs range from savings for education to retirement planning and leisure travel.

The Advantage of Early Engagement

Research indicates that new movers are five times more likely to become loyal customers if engaged early in their relocation process. Despite some financial opportunities not being immediate, the varied stages of a mover’s journey underscore the importance of establishing a presence early and maintaining it. This strategy ensures your financial services are at the forefront when the need arises.

Opportunities for Customer Relationship Growth

For financial institutions, new movers offer dual opportunities: deepening existing customer relationships and acquiring new ones. By monitoring customer bases for relocation signals, institutions can proactively address evolving financial needs. This approach, especially when combined with life stage triggers like marriage or childbirth, positions your institution as attentive and customer-focused.

Beyond Traditional Approaches

Traditionally, financial marketing to new movers has centered around checking accounts. However, the potential extends far beyond to credit card and loan offers, particularly 6 to 12 months after the move. By integrating mover information with additional demographic and intent data, financial institutions can create highly targeted and relevant marketing strategies.