Shoppers Primed to Spend and Save on Home Improvement

written by BVM March 1, 2018

Valassis, a leader in activating consumers through intelligent media delivery, recently released its Dynamic Home Improvement Shopper findings, to help advertisers create smarter, more customized campaigns based on how consumers research, plan, and purchase items for their home projects.

Valassis’ survey of over 1,200 respondents found that homeowners across generations are planning to make some type of home improvement in the next year, with 79 percent of Millennials (67 percent of Gen Xers, 49 percent of Boomers) planning to do so. The high percentage of millennial home improvers is not a surprise, especially given that they are the largest segment of new homeowners today, with Zillow reporting that this generation makes up 42 percent of home buyers. However, in terms of the annual spending on home improvement projects, Scarborough 2017 data shows that Boomers ($2,799) and Gen Xers ($2,652) currently outspend their millennial counterparts ($2,412). These data points all highlight the importance for brands to engage multiple audiences through strategic, relevant messages.

According to a report from Harvard University’s Remodeling Futures Program, home renovations and repairs spanning from mid-2017 to the second quarter of 2018 are expected to reach $324 billion, providing a lucrative landscape for brands and retailers within this market.

“Taking a consumer-centric approach helps marketers understand what makes each shopper tick,” said Curtis Tingle, Chief Marketing Officer of Valassis. “First, use real-time signals to identify which consumers are ‘in-market’ and ready to buy. Next, overlay insights that identify the type of media that is influencing them to make a purchase, and why. Finally, craft relevant messages based on your findings to increase traffic, drive sales and win the shopper as they look to spend more on their homes.”

Takeaways from Valassis’ research include:

Home improvement consumers look before they leap:

  • Among homeowners who did or are planning home improvement projects —
  • 71 percent of Millennials took more than three months to research compared to 57 percent of all homeowners.
  • 36 percent of Millennials took six or more months vs. 28 percent of all homeowners.

 

The online marketplace, especially via Amazon, is changing how consumers find home products and services:

  • The top three home improvement products or services shoppers are willing to buy from Amazon are:
  • Large appliances (45 percent);
  • Lawn, garden and yard maintenance (37 percent); and
  • Housecleaning services (36 percent).
  • Millennials have an especially high affinity for shopping on Amazon for these products and services, with percentages increasing significantly (65 percent, 64 percent and 61 percent, respectively).

 

Home improvement projects run the gamut:

  • The top four projects homeowners currently have in mind include:
  • Painting (26 percent);
  • Replacing or installing new floors/carpets (24 percent);
  • Remodeling a bathroom (20 percent); and
  • Remodeling a kitchen (19 percent).

 

Relevant messages and offers can sway purchases:

  • 65 percent of Millennials go to the retailer featured in a manufacturer’s advertisement to make a purchase compared to 53 percent of consumers.
  • 75 percent of Millennials (vs. 67 percent of all consumers) are motivated to make a purchase due to a special deal or promotion.

 

These findings equip marketers with data and insights to roll out their next campaign with greater precision, confidence and results. Valassis’ campaign planning services help marketers connect the appropriate online and offline data intelligence to create relevant, effective, integrated media plans.

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