Looking for a simple, yet effective way to create targeted mailings? Try using ZIP Codes. You can create highly effective campaigns at a very reasonable cost by identifying ZIP Codes with large percentages of residents that match your desired audience.
Let’s look at five ZIP Code filters: age bracket, household income, presence of children in the home, household size, and geographic radius, along with how to use them.
1. Age range. Locating ZIP Codes with high percentages of residents within your target age demographic can be a powerful tool. If you sell life insurance, for example, you might target areas with the highest percentages of residents in the 18 to 35-year-old bracket, since this demographic is the largest customer base for this product. If you are looking to sell higher-end policies, however, you might look to ZIP Codes with the highest percentages of 35–44-year-olds, the second largest buyers of life insurance, but who tend to have more earning power.
2. Household income. Did you know that you can filter ZIP Codes by how much the average household makes? If you sell luxury items, you may want to target households with incomes of $250,000 or more. If you sell budget-friendly items, you may want to target those with incomes of $100,000 or less.
3. Presence of children. The presence of children in a home is a very important factor for businesses to consider, as well. It is especially powerful when selling toys, clothing, pediatric healthcare or dentistry, tutoring, and other products targeted to the parents of children.
4. Household size. The size of the household can be a useful filter if you are selling budget-friendly items, for example, since large households need to stretch their dollars further than other households. Large households can also be an indicator of multi-generational living.
5. Geographic radius. Sometimes it’s the geographic location itself that is the target. Businesses opening in a new area might want to send “Grand Opening!” announcements with coupons to residents within a five-mile radius. Manufacturers of ethnic foods might target specific neighborhoods with shoppers known to make those types of meals.