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DMTI Spatial Releases White Paper Outlining Why 6 Digit Postal Code Boundaries are the New Marketing Geography

Canada – DMTI Spatial (DMTI), a leading provider of enterprise location intelligence solutions, further demonstrates the value of the next generation of Canadian postal geography found in the Platinum Postal Suite™ (PPS) in a new White Paper detailing the results of an independent research study performed by York University. The study involved the comparison of postal and census geographies typically used in market segmentation and targeting applications. The research concluded that using postal geography units at the 6 digit level provides a significant increase in the discriminating capabilities of marketing analytics when compared to census units such as dissemination areas.

In the past, expert opinion has advocated the use of government administration boundaries, such as census dissemination areas, as the ideal geographic unit for marketing activities. There are 54,000 dissemination areas (DA) within Canada with an average of 250 households included in each geographic area; this forces marketers to cast a wide net in order for their campaigns to be successful. The 818,000 active postal codes across Canada represent an average of 35 households per unit, making postal code boundaries more effective for highly targeted marketing campaigns because they represent smaller clusters of households. DMTI’s Platinum Postal Suite™ provides urban and rural 6-digit postal code (FSA LDU) boundaries, full point of call (POC) information with Delivery Mode types (e.g., letter carrier routes) with unmatched precision down to the neighbourhood level.

All marketing services will benefit from the resulting increase in ROI that the neighbourhood precision of 6-digit postal code provides. With data current to the Canada Post monthly release schedule, updated point of call attribution (homes, businesses, apartments, farms) is available for more timely analyses.

Neighbourhood level maps built up from postal code data provide retail customers with a new interface for analysis of their direct mailing and coupon campaigns.

“The postal code as a smaller unit of analysis reveals more detail in marketing demographics allowing for better targeting capabilities,” explained Robert Szyngiel, Product Manager, PPS, DMTI Spatial. “Through a more granular neighborhood view, higher value customers can be identified and reduced campaign costs can be achieved from analytics through to distribution.”