New Residents Can Make Up for Local Customer Turnover

Targeting new residents is the most effective way to replace the 20 percent to 40 percent annual customer turnover rate that typical small retail operations face.

According to research cited in a new study by Moving Targets (via DMNews), movers go through five stages of transition during a move: Separation, as people say goodbye to their old connections; Transformation, the physical aspect of the move; Early Integration, encompassing the first six months in the new community; Later Integration, the subsequent period of adjustment; and Maintenance, the indefinite period once the resident is finally settled in.

It is during the Transformation, Early Integration and Later Integration stages that new residents represent the immense opportunity for local retailers. According to the U.S. Postal Service, this period represents a time of "hyperspending" as movers buy everything from new drapes to Chinese carryout. On average, new residents spend $7,100 for goods directly attributable to their relocation. During the first 24 months after a move, an estimated 80 percent of new residents will try new products and services from local businesses.

The Moving Targets study reports the following facts about new movers: 62 percent eat pizza; 65percent of female new residents are anxious about finding a good hairstylist; 67 percent say it's difficult to find an honest auto repair shop; 80 percent redeem gift certificates offered by local merchants; and 98 percent appreciate gifts or offers from local merchants.