This week’s question: How reliable are income selects on lists, especially in light of the current economy? Our current panel features Jim Hall of All That Marketing, Matt Kaiser of Veradata and Don Yaffe of Belardi/Ostroy. (Would you like to be considered to be a member of our roundtable? Contact Larry Riggs at [email protected].)
Jim Hall, vice president, All That Marketing:
Using buying habits as an economic indicator is better than using an inferred income select in most cases, especially if you are looking for higher income individuals. By selecting a three-month $200+ last purchase buyer you know that consumer has the means and the history to buy now. However if you are looking for a lower income individual, the income select may be a better option for your market.
Matt Kaiser, executive vice president, Veradata:
Most compilers routinely update and verify the algorithms used to derive this information. Even so, we find significant disparity from one database to another. This can prove to be especially challenging if the mailer’s offer places a significant importance on the affluence of the intended recipient. We have found that drawing data from multiple sources as well as using additional selects to infer income and wealth information such as vehicle ownership and buying behavior offers marketers the greatest chance of success.
Discretionary spending power is ultimately the desired capability of the audience. Income, while directionally helpful, is not the best indicator of a household’s capacity, or—perhaps most importantly—the household’s likelihood to part with its money for a product or service. In today’s economic climate, differentiating the savers from the spenders is the most common objective for our clients.
Don Yaffe, senior account executive, Belardi/Ostroy:
All of the major consumer compilers offer income as a major select and in all cases this information is modeled. The compilers of this data use different methods to determine household income. Besides the modeled analytics used, this data also comes from the census reporting every 10 years. Finally, households fill out different surveys and warranty cards both online and through the mail that offer different income buckets to choose from.
Overall the income data is fairly accurate, but it's important to tell clients and mailers how this information is compiled. Unlike age select, people don't provide their exact income. Because of the economic times, modeling techniques have been adjusted plus a new census data will be available in the coming months, so income statistics should continue to be fairly reliable.
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