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Although new parents represent a small segment of the total population, it is a transitional phase in peoples' lives. Transitions mean altered needs, and new parents are receptive to offers of new products. Many new parents soon become home movers, and by tracking home movers, utilities improve their retention rates and develop durable relationships with consumers as they move up the value chain. Scope Explanation of the importance of targeting young families - a way of tracking home movers, and a way of targeting a segment with growth potential. Insight into the issues affecting young families - mastery of which can equal commercial success for a utility. Advice on tracking home movers - utilities can identify a sub-segment of families that will need to move house, and who therefore need to be watched. Advice on tracking home movers - utilities can identify a sub-segment of families that will need to move house, and who therefore need to be watched. Highlights There is a lack of family specific targeting many parents did not even know what this would involve on the part of a utility. This has positive and negative consequences: there will be little competition for the utility that does target families, but they will not know what to expect. Simplicity is crucial but this can mean sending a bill every quarter and not a whisper more, or it can mean continuing a deeper customer relationship, but doing so flawlessly. Parents become more risk averse, and this can be used by utilities to sell more home insurance services. But many people are cynical about these services because the perceive them to be 'rip-offs'. Utilities either need to be clearer about the value of these services, or market the same services, but charge the market price on a per-use basis. Reasons to Purchase Gain commercial advantage from an understanding of an important, segment of the customer base - one that has been overlooked by utilities so far. Improve the way that home insurance products are marketed to the people who are most likely to buy them. Discover simple ways to transform an existing product portfolio into a fresh tariff, by addressing the perceived needs of young families. |
