Reaching First Time Homebuyers
National retailer achieves 749% ROAS by optimizing new mover activation strategy with geodemographic segmentation
Roughly 35 percent of all people who purchase a home are first-time home buyers. A significant majority of new home buyers are moving directly from rental units and will likely be investing in big-ticket items to help them get settled into their new homes. These high-spending new homeowners offer an invaluable opportunity for retailers to increase their share of wallet among customers during a key life stage trigger.
A leading national retailer struggled to capture sales dollars from first-time home buyers who were moving into the brand’s trade area. The retailer wanted to encourage new homeowners to visit their local store for their first major shopping trip as the retailer’s product assortment was well suited to this segment. The goal was to identify high performing customers during periods of peak spending and drive them to the retailer post move.
The retailer partnered with Speedeon Data to develop a direct mail acquisition strategy targeting first-time home buyers. Postcards were mailed featuring transactional-level discounts to maximize cart size. Speedeon Data utilized geodemographic segmentation to target roughly 335,000 first-time homebuyers who were not only moving into the retailer’s trade areas but also shared common characteristics with the retailer’s best customers.
Nearly 3.75% of new home buyers responded to the offer, spending an average of $95 during their visit, resulting in $1.13 million in top line revenue for the company.