If you’re doing a regional or local direct mail campaign for your client and you’re targeting by entire ZIP codes, you may be wasting your client’s good marketing money. Even traditional “ZIP modeling” doesn’t help when your client wants to target smaller areas around each site. Instead, using analogous “carrier route modeling” techniques, you can save your clients hundreds or thousands of dollars per ZIP code (while your revenue actually increases). By eliminating areas where you expect low response rates, you save your clients money and improve overall response.
ZIP code selects include some of the wrong people and miss legitimate targets. Imagine a retail chain with a site that is near the border of two ZIP codes. Pulling lists only from the “included” ZIP code misses many high-quality prospects just across the border and reduces response rates because individuals at the far end of the “included” ZIP code probably aren’t good targets anyway.
If clients don’t need to mail to an entire ZIP code, then they shouldn’t. In an average saturation mailing, there can be more than 5000 pieces mailed per ZIP code. But what if your client wants to mail only within 5 miles of each of their 40 site locations? One solution is to use geocode the entire prospect list – adding a latitude and longitude to every record – and then select those addresses within 5 miles. While this is very accurate, it does add cost and is difficult to explain to your clients.
A more affordable option – and easier to explain – is to filter the list by postal carrier route code. Every list that has been run through a CASS process will have the carrier route code and many brokers allow clients to select by carrier route.
Mapping service bureaus can provide you with lists of all the carrier routes within an area. Some can even provide you with maps of entire ZIP codes broken down by carrier routes and showing streets so you or your client can cherry-pick the best routes to target. By spending well under $100 per site or per ZIP, they can save between $100 and $1000 per ZIP code. The savings of course depends on how much their per-piece costs are and how much mapping can trim their mailing.
Many list providers would say “just mail the whole ZIP code,” thinking they should rent as many names as possible. But that would be doing their client a disservice. Even if you charge your clients for the better targeting, they’ll still save a bundle and keep coming back to you because of the value you provide.
A more sophisticated and impressive use of mapping is to create a “thematic” map that color-codes each carrier route. Thematic mapping based on data already in your client’s database can provide strong visual evidence of trends and patterns in customers. Then you can help them find new prospects most likely to respond to future offers.
By offering your clients location-based services, mapping, and targeting, you will distinguish yourself and give clients another reason to work with you. Plus, such value-add services, increase your revenues. This goes beyond just another fee for mapping. It changes how your clients and future prospects see your organization. When the market views you as a reliable source for many value-added services, your revenues and profits will increase.