7 products you should not buy online

Aug. 12, 2015

Why new homeowners give such good ROI

I saw this article in Kiplinger Consumer News, and as a dedicated direct mail advocate, I wanted to comment on it.

The article lists seven retail items where the benefits of a face-to-face purchase far outweigh the opportunity to buy the same product online.

  • Bicycles
  • Kids shoes
  • Flowers
  • Furniture
  • Home décor
  • Mattresses
  • Swimwear

Of the seven items, the three most expensive are home-oriented and most often purchased by new homeowners.

New homeowners account for more home-oriented purchases in the first three months in their new homes versus regular homeowners, who may purchase the same items over several years.

It’s no surprise that new homeowners are the top group of prospects for furniture/mattress and home décor stores, as well as for companies that offer window treatments, security alarm systems, water treatment units and pest control services.

Mailing to new homeowners is a bargain. Marketers are able to fine-tune their advertising budgets by direct mailing only to these top prospects.

Here is my logic:

The database has 98,307,732 households, of which 67,747,567 are home/condo owners. In 2014, 1,913,606 new homeowners bought homes/condos in 2014.

By mailing only to new homeowners, we have narrowed our marketing efforts and expenses targeting less than 2 percent of the population. We can reach them dependably and inexpensively though the mail. Why spend money reaching the other 98 percent?

Water quality dealers who entice the new homeowner group with creativity and provide an offer they can’t refuse will generate interest. Direct mail will build brand awareness, generate leads and give great return on investment.

What an efficient use of resources! It’s like using a scalpel instead of a shovel.

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