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ZIP CODE LIFESTYLE CLUSTER
ANALYSIS
- CUSTOMER LIFESTYLE SEGMENTATION While there are about 43,000 valid five-digit ZIP Codes in the United States, only about 30,000 contain actual street addresses. The remaining ZIP Codes primarily contain Post Office Boxes, but no businesses or dwellings. In the ZIP Code Lifestyle Cluster analysis, Bamberg-Handley, Inc. matches your company's customer file only within occupied ZIP Codes. We calculate the percentage of customers in 62 different lifestyle segments within each occupied ZIP Code through a process called multivariate analysis. We assign to each neighborhood (or Block) a single number between 1 and 62 that best describes its lifestyle characteristics, taking all 64 demographics into account. The fact that there are 64 demographics defining 62 lifestyle clusters (almost the same number) is completely coincidental. The 64 demographic categories considered, broken down into13 main characteristics, are:
By summing the probable number of client records which fall within each
lifestyle segment and comparing the sum to the entire population of that
segment, Bamberg-Handley, Inc. can determine the importance of each segment to your business.
For instance, if ten percent of all past purchases are made by persons
pertaining to a
certain lifestyle cluster and that cluster accounts for only five percent of the
population, it would be fair to say that persons in that cluster are twice as
likely as the average to buy the product. We would say that the cluster
has an index of 200 (an index of 100 means exactly average).
In
this process, we identify which ZIP Codes are most important and which are not.
Our reports clearly identify the clusters which drive most sales. No less important, our reports also identify segments containing persons
who are not reasonable prospects. By halting marketing efforts to poor prospects and concentrating
on prime prospects, sales can be increased without spending any more on marketing.
A ZIP Code lifestyle cluster analysis may be linked to other
Bamberg-Handley data.
*The stated price includes analysis of a customer file of up to one million records.
For Free Consultation and Additional Information, Please e-mail us, or call:
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Understanding the demographics, lifestyle behaviors and buying patterns of the
most profitable segments of the population at the ZIP code level is key to a successful target
marketing strategy. Targeting only those who have a high propensity to purchase
your products and services will help you cut your marketing costs tremendously. Thanks to its
unique customer segmentation system, Bamberg-Handley, Inc. can identify the prime prospects for
your business. 
Demographics