Target direct mail according to 'distance from the branch'.

• Author: Hays, Wayne
• Position: Marketing News

We cut costs on direct mail campaigns by using our MCIF to reduce the number of mailed pieces. We do this by targeting those who Live close to a branch--three miles, for example--rather than targeting by ZIP code.

We mail based on "distance" by appending Latitude and longitude to other demographics in the MCIF. By using an account distribution report with distance as the distribution field, we can examine each office and the distance the branch is from the customer's home.

Let's assume that, on average, 70 to 80 percent of the branches' checking account customers live within three miles of the office. Based on this assumption, when targeting existing customers who don't have a checking account, we would mail only to those within three miles of the office. If there are 5,000 households in a ZIP code but only 2,500 within 3 miles, you can easily cut postage costs in half.

The same "distance" targeting can be performed with any product or service.

Here's the "distance" formula for the approximate distance in mites =

Square root of ([x.sup.2] + [y.sub.2])

Where x = 69.1 times (latitude "branch" - latitude "account")

And y - 53 times (longitude "branch" - longitude "account")

To get the distance into the MCIF, first export the following fields from all accounts: branch where account was opened, account number, Latitude and longitude of each account into Microsoft Access or Excel (if there aren't too many records).

Second, input the latitude and Longitude of each branch into Access or Excel.

Third, create a column in Excel called "distance" and use the formula to calculate distance. If you're using Access, you can run a query to...