We use the discretionary spend index to find out how much people can spend. This is a unique way to look at consumers. For many products, this is totally the way to go!

Marketers have traditionally used income, net worth + income producing assets to target the affluent consumer. The truth is that these data elements provide insight only into spending capacity. Certainly, they do not cover how much money is actually being spent.

Consumers who appear nearly identical in terms of their demographics may vary widely when it comes to discretionary spending. Some people are savers. Some are spenders.

Therefore, if you want to target consumers based on what they spend, not just their financial capacity, you should consider this file.

Key Industries:

  • Travel
  • Entertainment
  • Education
  • Personal care
  • Non-Profits
  • Dining Out
  • Alcoholic Beverages

How the information is derived:

This is a household level model, created by Experian.

Experian uses Econometric Data, which is supplied by US Government agencies. It covers retail sales trends, unemployment, & housing. National Survey Data, which comes from surveys conducted by the US government, is also used. This models household spending by category. All of this is overlaid on Experian’s consumer data.

This model is re-calibrated quarterly based on the econometric trends.

The entire consumer file was run through this model. Then, a 5-byte score was appended to each household, representing annual discretionary spend. The dollar amounts in the model range from $888 to the top category of $87,900+up

Major League Sports Teams.

We have seen great Test Results for season ticket sales in Major League Sports Teams. Ask me for case studies of Baseball + Basketball franchises.

Fine Tune Cruise Prospects

Traditionally, Urban Professionals and Prime Middle America segments are the top cruise prospects. Our new DSI has found that as a group prime middle America consumers have 46% less in annual discretionary spend dollars than Urban Professionals. If I wanted to get the biggest bang for my buck, I’d mail to the Urban Professional group.

Luxury Products

Remember, it’s not just enough to show a high income. Luxury product retailers are looking to reach out to individuals who can write the check.

Finally, the Discretionary Spending Index is available as a list select. You can overlay it onto almost all of our Consumer files. It also used as a Research tool or for Enhancement.