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Andrew Lockwood discusses the benefits of visualizing data using three-digit zip codes instead of five-digit zip codes. By aggregating data at the three-digit level, it provides a clearer view and allows for easier analysis. He demonstrates how to transform data from a spreadsheet or table to show volume at the three-digit zip code level, enabling the drawing of conclusions. In the U.S., zip codes have five digits, with the last two digits specifying a specific area within the three-digit zip code.