2020 has shown us how we can adapt to unpredicted circumstances and in a lot of situations we have thrived. As a banker, you have seen your team move in big ways to help your local businesses get PPP loans, communicate a substantial number of changes and updates, and serve those who needed it most. While you have successfully connected with customers to help with change, there is a big opportunity to bring new families and individuals to your bank. As banks are overall doing well with loans, there is an opportunity to attract and bring in new customer deposits.
Why Target New Movers
There is a consistent trend in the number of people who move each year. According to the Census Bureau, 1 in 10 people move each year. Nearly 36 million address changes were processed in 2019 by USPS. Why does connecting with new movers bring a big opportunity for deposit growth?
- According to V12, people who move are 5 times more likely to be attracted to your bank if you connect with them first.
- According to The Financial Brand, when a consumer switches to a new bank, the 2nd of the top 4 reasons is due to a move.
- Connecting with a new mover within 60 days of moving is 80 times more likely to be a new customer than contacting a current resident.
- According to research conducted by MarketProfs, 40% of consumers try new businesses after they receive direct mail.
COVID-19 Has Influenced New Movers
Outside of the six life experiences that influence a move, the Pandemic has added influencing factors as to why people move. Jessica Lautz, vice president of demographics and behavioral insights at the National Association of Realtors states, “Buyers are no longer wedded to city centers and small apartments which can often be unaffordable. As workplaces have transitioned to remote work, homebuyers are able to purchase in less dense neighborhoods and have the benefit of more personal space within their home.” Their website provides net migration by state and suggests the pandemic caused many people to move from the city to suburbs. The National Association of Realtors also predicts 2021 will continue to see suburbs and smaller cities gaining more population.
Offering Something More
Informing your new mover about the benefits of your financial institution is informative and helpful, but new movers are looking for connection. Especially in a time where many events are cancelled, new movers are looking for help at how to connect to their new community. According to Zillow, the rise in people working from home due to COVID-19 has shown more views for nearby vacation spots, which is up almost 50% from last year. This indicates people are staying local and want to find places to experience close by. Creating new mover direct mail campaigns and incorporating material that helps a new resident get acquainted with their local area will:
- Bring traffic to your website and social media profiles, allowing you to know your prospect better and to continue to connect digitally
- Add value over your competition
- Creates awareness, develops trust, and strengthens your relationship
- Establishes your bank as the knowledge expert of the area
Helping new movers make the connection to their new community will aid in deposit growth. To review a more detailed approach, including proven analytics and digital strategy, certainly connect with our team here.
