Economic Cohorts
Money and spending drive consumer behavior. By now, there can be no doubt that marketing without adequate insights into consumers’ economics simply makes no sense.
IXI’s Economic Cohorts® is a household segmentation system that differentiates households based on IXI’s proprietary measures of total income, spending, ability to pay, and credit usage in combination with lifestage, urbanicity, and demographics. It offers marketers a new and better means of understanding, targeting and communicating with their customers and prospective customers.
Aimed at addressing the specific needs of marketing departments, Economic Cohorts provides a state-of-the-art tool for differentiating, understanding and targeting consumers, and delivering the right messages to the right households.
The Economic Cohorts clusters are defined using a combination of the following household characteristics:- Income and Spending: Economic Cohorts cluster assignments depend on the intersection of household income and spending. IXI’s income model is a unique household-level income estimate that includes both income from wages and income generated from invested assets. IXI’s discretionary spending estimate is a modeled dollar amount that a household spends on discretionary items annually after accounting for fixed expenses of life. The intersection of these two measures helps determine cluster allocation.
- Demographics/Age: Clusters are associated with four major age breaks: <35 (Young), 35-54 (Working Years), 55-64 (Pre-Retirement), and 65+ (Retired). Life-cycle/lifestage, marital status and presence of children are also considered.
- Credit Data: Industry-leading credit information from Equifax, anonymized and aggregated, is factored into the cluster construction.
- Geographic Information/Urbanicity: Cluster definitions take level of household urbanicity into account.