Research Topics:

Consumer Research | Segmentation Studies | Site Selection Analysis

Industry/Market Focus:

Government | Retailing

Content Type:

Glossary

ACORN Definition

ACORN – a classification of residential neighborhoods – is a marketing segmentation system that enables consumers to be classified according to the type of area they live.

What is ACORN (A Classification of Residential Neighborhoods)?

ACORN is a geodemographic segmentation tool created in the U.K. by CACI. It classifies households and postcodes into categories based on demographics, housing and lifestyle characteristics. It is used by marketing researchers, marketers, retailers, local governments and other researchers to understand and target different types of communities.

How does ACORN work?

It uses data like income, housing type, education, employment, family structure and consumer behavior. It segments the population into broad groups (e.g., “Affluent Achievers,” “Rising Prosperity,” “Financially Stretched”) and then into more detailed subgroups. It allows companies or agencies to say things like: “This neighborhood is mostly young, urban professionals with high spending power” or “This area has older retirees on limited incomes.”

Why is ACORN useful?

It helps with marketing targeting (right product, right people, right place). It assists policymakers in tailoring public services to community needs. And it supports retail site selection (choosing where to open new stores).