What do a newly married couple, a recent college graduate, and an expectant mom all have in common? Yes, this sounds like the beginning of a bad joke, but in actuality, each of these consumers are experiencing life event changes. And when consumers make important life decisions or are in a state of change, these milestones tend to define spending habits. A newly married couple may be ready to furnish their new home. Or a recent college graduate may be in market for a new vehicle. Whatever the circumstance, marketers can take advantage by sending offers to coincide with these moments.
Life event marketing isn’t new, but if you aren’t implementing this strategy into your marketing plans, it is time to reconsider. Historically, businesses understood the value of marketing based on life events but the most common challenge tended to be finding the data and acting on it while it was still fresh. After all, if you learn about a newly married couple 3 months after the fact, many of the opportunities will have long passed you by. The world is now faster and data is created and collected instantly. Just as important, data solution providers have become more sophisticated in how they source these life defining moments, allowing marketers to target consumers before the opportunity is lost.
Take a look at some of the ways marketers use life event data to target consumers based on life-changing events.
Did you know that over 45 million people move each year in the United States?
- New Mover annual expenditures exceed $150 billion
- New Movers are five times more likely to become long-term customers if you reach them first
- New Homeowners spend $9,700 on items for their new home within the first 180 days
- New Homeowners spend more within the first six months than the average consumer spends in three years (source)
The most popular purchases for new movers include:
Identifying consumers experiencing life changes and asset changes significantly increases the likelihood of consideration of a marketer’s message. In the following example, Dave has been previously marketed to before for term life insurance. He is married with one child and is in the proper demographic segment for consumers who purchase these products. The insurance carrier sent several messages with no response. However, once Dave purchased a new house and was in a state of change, he was immediately open to receiving a quote.
Other emotional needs will also trigger interest in insurance products and services:
A 2015 Report by Liberty Mutual Insurance revealed some interesting findings about what new parents plan to purchase:
- 61% of expecting parents were planning to purchase a tablet, laptop or other home electronics
- 43% planned to purchase furniture for the baby
- 33% of potential parents were planning a home renovation
- 21% planned to buy high-end, designer diaper bags or shoes for the mom-to-be
And research by Experian shows that consumers are 423% percent more likely to purchase a digital camera in the first six months of having a baby.
While these are just a few examples, numerous opportunities exist for marketers based on life events. And consumers appreciate these personalized offers. A new homeowner will appreciate an offer from a local hardware store and a college graduate will be more apt to pay attention to information on fuel-efficient cars. Consumers in a state of change due to a life event feel as if they have “permission to buy.” Smart brands that know that by reaching out with relevant messaging can create loyal customers for life.
To learn how to target prospects at crucial times in their lives with personalized marketing, download this free eBook.