Birds of a Feather Flock Together

There is an old adage within marketing that “birds of a feather flock together.” Individuals of like characteristics tend to cluster together within neighbourhoods. Therefore, by targeting marketing campaigns at the neighbourhood level, you can increase overall campaign effectiveness through more precise segmentation of address information.

Current Paradigm

Canadian marketers currently tend to rely on census or postal codes to segment customers geographically. This is represented in the diagram below with the coloured areas representing different 3-digit postal codes. While these methods allow you to divide your market, they still result in fairly large territories. It’s possible to get more granular to increase the level of segmentation.



Micro Neighbourhoods

DMTI has developed the concept of a micro neighbourhood. This is a way of geographically segmenting based on addresses that have a relationship to one another such as demographic profile or technology spending. Looking at the second image, we’ve zoomed in on the original pink neighbourhood from our first diagram to see individual houses with a common property valuation. Individual addresses are marked via the yellow dots placed on each rooftop, and using DMTI technology, you can easily group these individual properties to customize your target marketing efforts and increase effectiveness.



Improved Analysis

In the image below, you can see how micro neighbourhood analysis is used to compare and contrast addresses, with the green and blue dots representing current and potential customers respectively. When you begin a marketing campaign, you immediately benefit through the ability to analyze existing customers and new prospects at the same level of granularity. You can also use your own criteria to define the scope of these micro neighbourhoods; they can be as granular as required depending on the level of localization desired. An additional benefit is your ability to run campaigns at the address level without obtaining client contact information such as name and phone number, which are often hard to come by.



Solution

DMTI Spatial can help you group addresses based on geographic location and common characteristics. You can now analyze current and prospective customers side-by-side to develop highly targeted marketing campaigns that will increase profitability.

Visit our website for more information or try our interactive demo.