Householding is the exercise of determining the individuals or entities associated with the same postal address or the same dwelling unit. In the case of individual persons this denotes that such individuals may belong to same family or are a group of individuals living together and accessing the same service. In the case of corporate entities this will denote a group of companies operating out of the same premises or registered as subsidiaries under an umbrella of a flagship company. Householding is one of the forms of Group exposure which is more broader term. Through group exposure one can determine the hierarchical nature of the relationships. The definition of a household also varies by the end objective of the exercise. Defining the parameters and the methodology for grouping accounts into households is a joint effort between business and the IT team.
Typically the financial services industry is interested in householding and group exposure within its customer database for all marketing . From the the marketing perspective , the focus would be for campaign management, cross selling and up-sell . This exercise is carried out periodically to accurately report their unique customer households for targeting same household sales , offering discounts and reduce costs by combining individual mailers to the same household.