The increase in home sales creates tremendous opportunity for businesses in the home industry that cater to the New Homeowner sector.
New Homeowners are an amazing market segment who need a wide range of goods & services and will spend their dollars to get what they need. Even though they may be small in numbers, when it comes to lifetime value, there is no more profitable customer.
New homeowners purchase more products and services in the first six months after moving than an established resident spends in a two-year period.
According to the 2012 Scarborough USA+ Study, New Homeowners spent over $19 billion dollars on home improvements – ranging from furniture purchases to heavy remodeling projects.
So, what else do New Homeowners spend Money on?
· Services – 99% of new homeowners spend money on Services such as new doctors, new beauty salons, new dentist, new mechanic, new dry cleaner, etc. in the first 30 days after buying their home.
· Furniture – 60% of new homeowners spend money on Furniture.
· Window Coverings – 57% of new homeowners spend money on Window Coverings in the first 30 days after buying their home.
· Electronics – 52% of new homeowners spend money on Electronics in the first 30 days after buying their home.
· Kitchen appliances – 40% of new homeowners spend money on Appliances in the first 30 days after buying their home.
· Bedding/Mattress – 33% of new homeowners spend money on Bedding/Mattresses in the first 30 days after buying their home.
· Water Filters – 60% of new homeowners buy a water conditioner within a year of buying their new home.
· Pest Control – 70% of new homeowners will buy a pest control contract in their first year
· Landscaping – 51% of New Homeowners will have landscaping work done on their new home in the first year.
· Do It Yourself – 49% of new homeowners made a purchase at Home Depot in their first year / 45% of new homeowners made a purchase at Lowes.
Sources: 2015 WQA Consumer Study, 2012 Scarborough USA+ Study, DMA 2008 study
New Homeowners also need to buy BBQ Grills, Patio Furniture, Garage Organizers, Custom Closets, Security Alarms & Monitoring services, Termite control, tax preparation and insurance.
Business need to reach out to New Homeowners and make them an offer they can’t refuse. A new homeowner can be a customer for life.
Dataman Group Direct in Boca Raton, FL has been providing lists of New Homeowners since 1980. The Dataman Group Listologists are the pre-eminent experts on the New Homeowner market in the industry and stand ready to help any business who wants to score with this key market group. Call (800) 771-3282 for additional information about the New Homeowner market.