Why Do Retail Stores Want My Zip Code?
May 27, 2007 4:06 pmFiled in Geography We are all familiar with stores that ask for zip codes or even phone numbers, but do you know why? Since you are reading this blog you can probably guess it has something to do with GIS and you are correct. Retailers realized it is beneficial tosee where their customers come from. The simple and easiest way to determine the location without asking a lot of questions is to ask for the customer’’s zip code.
At the end of the day or week, the retailer can take the zip code data and calculate how many customers came from each zip code. Now the retailer has an idea how many customers come from each part of town.
Seems simple enough, just count how many customers from each area.
An easier way to see the results would be to take the same zip code data and place it on a map. The map would show, by color, which area has a higher concentration of customers. In a matter of seconds the retailer could see her customers. The map shows the retailer which customers may not know about her store, where to send circulars or coupons and possibly where to build a new store. Wal-Mart and McDonald’’s have used GIS for years to determine the best location for their next establishment. It is not luck that they have some of the most convenient locations.
Now the next time the retailer asks for your zip code, you will know what they want to do with it!
