When customers move house, they are far more likely to change credit provider at their new address, or even leave their old balances unpaid. To convert these risks into business opportunities, lenders need to anticipate customer address changes in advance and target customers with personalised, compelling offers that help them through their move.
By taking this proactive approach, you can target customers before they’ve had a chance to shop around and put your brand firmly front of mind.
Most people who are moving house review their current credit providers, including mortgages, personal loans and credit cards, and if there seems to be a cheaper or better option available, they switch contracts. Customers are lost, and they may never come back.
With so much to organise when moving home, and countless new products and services to choose, home movers can often feel overwhelmed. In addition, they often feel anxious in the lead-up to the big day that they find it difficult to focus on any one task. This means that important things get forgotten, such as notifying providers of their move, which could leave debt at an old address or could mean losing the ability to effectively communicate with the customer.
Why target home movers?
Moving home is often a time when old purchasing habits are broken and new ones formed, making home movers more receptive to proactive communications from brands. A recent survey* found that:
- Home movers spend more on their home in the first six months after they move in, than they do over the next six years.
- In these first six months, they spend an average of £9,500 on new products and services for the home.
- 42% of home movers are first time buyers meaning they have a need for many new products and services.
- A third of movers said it would have helped to have a 0% APR credit card when moving, to help manage costs.
Movers are also spending money on large kitchen appliances, TV’s and sofa’s and 30% of home movers will fit/plan a new bathroom within six months of their move-in date.
Predicting home moves: from risk to opportunity
The ability to accurately predict when customers are going to move house can help your organisation convert these risks into opportunities and enable you to support your customers through this major life event.
First, you can identify which of your products or services customers are likely to need during their move and to send them personalised, compelling offers that foster loyalty and boost retention. You can also stay in touch with them throughout the process, ensuring that they have the smoothest possible transition to their new address.
Lenders can create compelling mortgage offers to capture the attention of borrowers at a crucial time in the home moving process and they can also take a proactive approach to retain and cross sell suitable products and services to existing customers. Likewise, credit card companies can choose to increase credit limits for good customers who are moving house – giving them access to the funds they need to renovate or furnish their new home.
Ideas for your own home move campaign are endless; you could also consider offering incentives and rewards, discount vouchers for home stores or even discount off energy efficient boilers.
Some hidden opportunities
By cross referencing customer data with information about their homes, you can get additional, valuable insight for your company.
For example, the size of a customer’s home is often an indication of their spending potential, and may shed light on their requirements in terms of fittings or furniture. Additionally, the specifications of customers’ homes are of great interest to insurers who need to verify information provided by customers before providing coverage.
Source (*): Homemovebox Ltd, 2013
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