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

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 perform the calculation and the column distance is created automatically. Latitude "branch" would correspond to the branch while latitude "account" would correspond to the account. The same setup would be used for longitude.

And lastly, import the distance and account number back into the MCIE For Harland MCIF users, this is called the "user-defined append" feature. This gives you the distance of each account from where the account was opened.

The accuracy of the distance formula can be confirmed by exporting the Latitudes and longitudes to mapping software that pinpoints Locations and is capable of drawing a circle with a corresponding radius (three miles) around a given point. All the points should fall within the circle.

If the latitude and longitude of a particular branch is unknown, it can be looked up on the Internet at www.melissadata.com. Click on "Free Lookups," then choose "U.S. Addresses" and type in a street address to get the information.

The latitudes and Longitudes may be at the ZIP plus 4 Level, but this accuracy should be good enough.

Wayne Hays is vice prescient, marketing, at Sand Ridge Bank, Highland, Ind. He' can be reached at Wayne. [e-mail]