While more people are banking online, they have more than one financial institution and are at least one of those is “close to home.” In rural and semi-rural areas, branch location becomes even more important. In Vericast’s 2022 Financial TrendWatch report, when people were asked what would most influence their decision to switch financial institutions, locations and convenience was the second most popular choice.
New mover programs deliver on both counts – and the market is significant.
According to the U.S. Census Bureau, roughly 30 million people move each year, meaning the average business needs to replace about 20% of its customers that move away in any given year. At the same time, new movers are five times more likely to become long-term customers if you can reach them before the competition does.1
Quantifying the new mover opportunity
The new mover population represents a fertile ground for marketers interested in young professionals and young families, who represent a significant portion of new movers. While young professionals and families have always been one of the most significant segments of new movers, given the decline in all other segments, they are now more prominent.
Consumers tend to change behavior when they move, even if they are relocating just a few blocks. They switch financial institutions, grocery stores, doctors, service providers and products they buy. This transformation process can last for up to two years as the mover develops a sense of home in their new location.
Movers may also be experiencing other life transitions, such as a new job, marriage, divorce, or growing family. People who are moving spend more money during the three months surrounding their move than non-movers spend in five years. The “hot period” for movers is 90 days before, during and after the move. During this period, homeowners will spend more than $9,400 on discretionary purchases within 90 days of moving, according to moving.com
Not only are new movers open to new a new location, they are also open to new brands. According to a 2022 New Mover Report, 90% of new movers are open to trying new brands for any items and services. Good reviews (56%), better prices than other brands of the same industry (51%), and recommendations (48%) are the top 3 factors why new movers would try new brands. 2
What entices new movers to try a new financial service provider?
People rely on a variety of factors when deciding to switch to a different bank or credit union.
How to maximize your opportunity
New movers are an excellent target for financial institutions to increase market share in deposits, loans, and ancillary services – but it isn’t enough to simply be a local banking option or have a neighborhood branch. To attract new movers, follow these four best practices.
1. Be first in the mailbox, inbox or web browser
Many purchases take place within 90 days of a move. By providing brand visibility early in the move process and combining it with a relevant offer, your institution can become a viable contender for your new neighbor’s banking business. When choosing a company to provide new mover contact information be sure the data is timely and accurate. Sources and quality of this data vary widely, so it’s best to build your list from multiple sources to ensure accuracy. For example, the National Change of Address mailing list captures only half of all new moves.
Print and digital advertising influence 62 percent of financial services purchases.2 Deposit incentives and cross-sell opportunities should feature timely products such as cashback checking and credit cards, digital banking, digital wallets, and instant issue debit cards. If you can get new residents to use your financial institution to finance their new home purchases, you’ll have an opportunity to earn their loyalty.
3. Make it easy
New movers have a lot on their mind and on their plate, so make opening an account at easier for them. Is your online account opening platform easy, simple and quick? If not, do what you can to make it so? People are used to the ease of Amazon® and other, apps. If an account can’t be opened in just a few clicks and minutes, they’ll abandon the process completely.
Given the ongoing battle for new deposit dollars, new movers are a segment that performs strongly and should be included in a financial institution’s comprehensive acquisition strategy. However, you will not be the only bank or credit union courting new movers in your area. New movers receive a lot of advertising messages in the first 45 days, so it is important to follow up your communications to keep your brand top of mind with them.
Effective new mover campaigns can be part of your comprehensive deposit and loan acquisition strategy. Ensure your account and loan opening process is top-notch by reviewing our best practices and recommendations for online account openings article.