September 30, 2008

Zip Code Marketing: Top 10 Most Productive Direct Marketing Customer Regions

Based on the current version of Hillstrom's Zip Code Forensics (read about and buy here), I present you with the top ten most productive direct marketing customer regions --- the places where zip code marketing is likely to be most effective.

Number 10 = Eastern New Jersey.


Number 9 = Wyoming.


Number 8 = Boston / Providence / Cape Cod.


Number 7 = Southwest Colorado.


Number 6 = Southern Maryland.


Number 5 = Whi
te Plains & New York City.

Number 4 = New Hampshire.


Number 3 = Northern Virginia.


Number 2 = Connecticut.


Number 1 = Vermont.



Yup, good 'ole Vermont is the most productive area for direct marketing in the United States. In fact, outside of portions of Colorado and Wyoming, the East Central and Northeast United States, and New England are the most productive (demand per household) in the United States.

In fact, these regions spend 2.5 times as much per capita as do any other region in the United States.

Of course, this is actionable at a zip code level, because there are significant differences in spend by zip code and channel preference by zip code.

It does make one wonder about all of this multichannel marketing stuff. It becomes more and more clear that there are customer-specific micro-channel preferences and geographic influences that override multichannel best practices.

2 comments:

  1. Don Libey11:45 PM

    Kevin

    Congratulations on this ground-breaking work. I have been following each installment of your research. Years ago, I looked at zip code analysis suspecting it had value, but got side-tracked for an entire career into RFM. You have done original work on a very important analytic specilaty -- and it is IMPORTANT.

    You state that this knowledge may be more significant than multichannel "best practices" (whatever those are). I believe you are correct.

    People -- customers -- live in communities and each community has characteristics, right down to "buys more by catalog."

    So, congratulations. I only hope smart direct marketers will follow your lead and begin to research their customer base using your knowledge. If not, they surely will be the poorer.

    Regards

    Don Libey
    Libey Incorporated

    ReplyDelete
  2. Thank you for the nice comments.

    Much of this information is freely available in the databases of our direct marketing brands, waiting to be mined. Folks, go use this information!!

    ReplyDelete