This document discusses how Australian Data Services uses demographic data and analytics to help companies understand changes in populations and target customers. Some key services mentioned include creating maps and reports about regions, forecasting population changes, profiling existing customers, and developing custom geographic classifications to improve promotional strategies. The overall aim is to help companies discover opportunities from demographic shifts and adapt their products and services accordingly.

1. Copyright © 2011
Australian Data Services

2. It doesn’t really matter who you
are, where you are or what you
do, it all comes down to
knowledge of your region
within Australia and how you
fit into it.
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Australian Data Services

3. Introduction
Australia’s population mix and structure is always changing, meaning services and products in demand are
also, always changing.
On a national scale, demographic changes are often very slow, but in many towns, suburbs, and even entire
regions, the changes are often quick and dramatic.
These changes have huge effects on regional economies, public services and business.
Over the last few years, the most noticeable trends include the following:
• Cultural and ethnic mix changes in immigrants
• Decline in birth rates, leading to negative population growth
• Baby booms and baby boom echoes and their impact on demographics and population
• The socio-economic segregation among neighborhoods
• Inter-regional and interstate migration, include “the seachange effect”
It is our view that companies thrive upon:
• Discovering the opportunities which are brought about by changes in demographics
• By making and utilising the correct strategies to make the most of those opportunities
It is our purpose to:
• Provide companies with the power to get the most from their products and services
• Help companies meet the changing demands which are caused by changes in demographics
It is our analytical based methods of changing data into knowledge, and knowledge into strategy, calibration, and
active implementation which have proven successful.
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Australian Data Services

4. Demographic data
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Australian Data Services

5. B2C and B2B Data
We have access to the most up-to-date Residential
and Business data available.
We supply:
• Telemarketing data
• Mailing data
• KML/KMZ Overlay files for Google Earth
These datasets can be enhanced with
• geo-demographic targeting
• tagging against characteristics
(e.g. owner occupiers or renters etc)
• We can pull data against CCD data
allowing you access to the effects
of the 80:20 rule where you
contact 20% of a region and still
retain 80% of the usual income
from that same region
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Australian Data Services

6. Charity Acquisition
Recently we entered the
Charity sector and are looking to use the
demographics skills we learned in the
commercial sector to help in the
acquisition of new donors.
If you are a Charity, we’d love
to hear from you!!
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Australian Data Services

7. Basic maps
It is possible to produce maps from customer databases, geo-coded as “points” which represent locations such as
hospitals and stores, or from public information. Huge insights are offered by mapping how customers are
distributed based on trading area impact, travel patterns, the influences of local distribution or
representation, and demographics.
Maps can be distributed as:
 Part of a geographic information system
 Hard copies
 Graphic files
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Australian Data Services

8. Regional reports
Designed to give an overview of an area’s profile, and the changes that have recently taken place within the
area, regional reports are very important.
When designing regional reports, we consider many things, which include the following:
 The distribution and composition of populations
 Increase or decrease in population
 Estimations of populations
 Projections and forecasts of populations
 Main elements which have changed
 Fertility and mortality, and the life tables generated from these
 Migration and separation of immigrants
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Australian Data Services

9. Forecasting
Changes in population are closely observed so that forecasts can use that data in order to be more accurate. There
are studies which are performed at different local government areas and geographic trading areas, on both state
and national levels.
Our forecasts also predict the most likely effects on:
 Health insurance
 Dwelling types
 Finance
 Retail categories
Also analysed in our forecasts are impacts on important trends such as:
 Seachange
 The impact of changes in immigrant demographics
 Interstate migration
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Australian Data Services

10. Customer profiling
The goal of segment profiling is to help understand the geo-demographic profile of your customers.
Geo-coding is used to achieve this, as it identifies the neighbourhood they come from.
In addition, it overlays census information and describes the profile of the neighbourhoods your customers live
in, including the demographics.
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Australian Data Services

11. Geo-demographics
We create custom classifications tailored to your service or product mix.
It’s a distinct advantage to have customised geo-demographic profiling done for you, as the important classes of
geo-demographics are different for each company.
The custom classifications are based on demographic variables which specifically affect your sales.
Segmentation by geo-demographics is simply the process of classifying geographic areas based on:
• Dwelling or demographic mixes which make up the areas
• After segment profiling, geo-demographic segmentation is the next logical step
• Provides a way to know how different neighborhood types may be seen as “typical”
• This means they are of the types which attract the bulk of consumers
A number of geo-demographic classifications are offered, based upon Dwelling characteristics and Demographics.
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Australian Data Services

12. Geo-targeting
The output from segment profiling and geo-demographic classification is called geo-targeting.
It involves dividing regions or neighbourhoods into groups which are based on which regions or neighbourhoods are
most likely to hold potential customers.
This provides the maximum return on investment.
There are many benefits offered by geo-targeting, which include:
 A good quality sample frame design to test the promotional offer
 An easy way to find more people in your target customer base
 A smarter way than traditional geo-demographics to learn about your customer base
 Based upon customised regional classifications
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Australian Data Services

13. Promotional mix
An interactive and sophisticated way to improve promotional efforts is promotional response analysis.
This predicts returns on investments of promotions.
This analysis is based upon a system which combines all relevant and available data by site from one demographic
classification or geographical area.
The components of the full promotional mix include the following:
 Special and base pricing
Different promotional activities which include:
 Development of incredibly interactive models which are used to predict impact
 Activities performed by competitors
 These models can be changed over time
 Above the line advertising
 Direct marketing
 Sponsorships
 In-store advertising
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Australian Data Services

14. Market research
A great deal of information is provided from market research.
Results from market research can be used to predict changes in small geographic areas if properly designed to do so.
Mapping findings of market research lets us use the research in a strategic way, as we can identify which areas have
the highest potential.
Two ways exist which allow market research to be used to predict changes to small geographic areas:
• Geo-coding allows maps to show geographic areas and the response bias
• Highlighted are geographic variations and clusters
• When responses to questions have strong demographic biases, the census is the foundation for
mapping the areas which are more likely to have similar biases
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Australian Data Services

15. Location analysis
The strategies we design are for charities, recreational facilities, distribution facilities, and retail outlets.
Aligning your company’s main operations and objectives to an adaptive plan which reflects the regional market
demand and demography is the main purpose of location analysis.
There are many processes which we utilise in order to develop a strategic planning base.
The trade area definitions are taken into account, using models and exit surveys.
We help forecast sales and make estimations about how the competition will affect you.
The studies we conduct take into account:
 Your company’s competition
 The site’s physical environment
 The retail environment
 In the case of charities, donor characteristics and trends
 The economic and demographic classifications in the region
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Australian Data Services

16. Location networks…
The network is created for the purpose of expanding the geographic area which can be served by a company.
In this way, the potential for sales is increased, while at the same time minimising the impact of economic and
demographic changes in small areas, and staying economical regarding promotions, labour, and distribution
networks.
Analysing networks takes place when multiple location strategies are created and utilised.
Generally speaking, when talking about multiple locations, these locations include:
• Bank branches
• Brokers
• Stores
• Distribution outlets
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Australian Data Services

17. Location networks (continued)
Designing networks is an interesting challenge, and each network presents a different type of challenge.
For example, a single outlet store is modelled around regional competition and demand.
However, a network needs to always take into account how opening a new outlet store will affect the entire network.
This is known as “Network Cannibalisation.”
An understanding of how each new outlet store will impact the network and the quantification of that impact is a
requirement.
Many advanced location allocation modelling techniques are used in order to achieve this.
These techniques take into account the estimated:
• Market share
• Demographic bias
• How the competition is distributed throughout the region
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Australian Data Services

18. Location networks (concluded)
• Interactive systems can show the geographic information in real time, with on-going analysis
• Using analysis and fusion of data means that the solutions are custom tailored to each company
• Using all data sources at our disposal, we will recommend; strategies for data collection
• We will also assist in developing models which are based on activities taking place in the world
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Australian Data Services

19. Sales territories…
When setting up clear objectives, it is vital to have a well designed sales territory. When designing a sales
territory, it’s important to have accurate planning and analysis, and to know what data must be collected. In order
to be successful when designing a sales territory, the following steps should be followed.
Know who your consumers are and the segments they fall under:
• Classify each segment by profit potential
Know which sales strategy works best for you and
your company:
• Know how distribution and merchandising
can impact the sales strategy
Set aside time to perform important sales functions:
• Minimise travel time and maximise
face-to-face marketing
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Australian Data Services

20. Sales territories (concluded)
After the steps on the previous slide have been completed.
The following should also be completed:
• Calculate the requirements of sales resources
• Experiment with different scenarios in order to discover the one which works best
Know how to train your employees to work in different areas with:
• Different demographics
• Different demand for services and products
• Make up a route plan and schedule
• Always take into account feedback from customers and changes in demographics
• Set clearly defined sales quotas for every territory, taking into account the territory potential
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Australian Data Services

21. Franchise territories
A crucial part of starting up a franchise network is to know the franchise territories, as they have a huge impact on the
franchise’s success.
The designs we use take into account the needs of both the franchisee and the franchisor.
We take the following into account:
• The workload balance in the territory
• The earning potential balance in the territory
• The necessity of minimising travel costs and time when applicable
• Customer coverage concerns about specific target markets
• Profit potential requirements
• Regional promotion and call centre relationships
• Territory definition legal requirements
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Australian Data Services

22. Product mix
No matter what geographic level you are marketing on; (trading area, neighbourhood, local government
area, suburb or CCD) understanding socioeconomic and demographic differences in the area that will let you
maximise what you can offer and the product or service mix.
When you use demographic-based analysis. you gain knowledge of how to:
• Keep products flying off the shelves
• Offer special promotions
People in different areas have different habits when it comes to:
• Transportation
• Media use
• Recreation
• Retail
...and this approach takes that into account.
It also takes into account the fact that there are many opportunities in each region when it comes to offering
services and products that are based on the needs of the region.
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Australian Data Services

23. Pricing strategies
Developed in order to help define how sales volumes change at different prices in different regions, pricing models can
help maximise profits.
The main things we test and explore in-depth include the following:
• The best price for the product or service, based on profitability at different prices
• How competitor prices impact strategies in each region
• Both the long and short term impacts of changing prices on sales volume in each market segment
• How valuable the service or product is thought to be by consumers
• How offering special prices affects sales in different locations and in different market segments
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Australian Data Services

24. Contact
: Australian Data Services
: 02 8916 6237
: sales@australiandataservices.com.au
Copyright © 2011
Australian Data Services