Shoppers Primed to Spend and Save on Home Improvement

Published Monday, Feb 26, 2018



Shoppers Primed to Spend and Save on Home Improvement

Valassis Research Reveals Home Improvers Plan and Research Projects, Deals Sway Purchases

LIVONIA, Mich., Feb. 26, 2018: Valassis, a leader in activating consumers through intelligent media delivery, today 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, 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.

To learn more, view the Dynamic Home Improvement Shopper eBook.

About the Study
Valassis’ Dynamic Home Improvement Shopper insight is based on the Valassis Awareness-to-Activation Study, an ongoing study fielded in conjunction with The NPD Group, Inc., a global market research company. The sample was derived via an online survey, and all participants were at least 18 years of age and living in the contiguous United States. Approximately 10,000 respondents are surveyed annually. This specific data was gathered from research fielded Sept. 29 through Nov. 30, 2017 to over 1,200 respondents and is balanced by age and gender to U.S. Census demographic profiles.

About Valassis
Valassis helps thousands of local and national brands tap the potential of industry-leading data through intelligent media delivery – understanding, engaging and inspiring millions of consumers to action with smarter cross-channel campaigns. We’ve been a part of consumers’ lives for decades, introducing new ways to deliver offers and messages that activate them — whether via mail, digital, in-store or the newspaper. NCH Marketing Services, Inc. and Clipper Magazine are Valassis subsidiaries, and RedPlum® is its consumer brand. Its signature Have You Seen Me?® program delivers hope to missing children and their families. Valassis and RetailMeNot are wholly owned subsidiaries of Harland Clarke Holdings.

Media Contact
Mary Broaddus
Valassis        
broaddusm@valassis.com
734-591-7375