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Household Economics

Explore our patented approach to socio-demographic and geographic insight into household finances with our disaggregated forecasts

How will economic developments affect customer incomes and behaviours and how will this impact your organisation? Household Economic forecasting from Experian gives you detailed insight into how the economy will impact specific customer groups. We do this using our patented approach, which links changes in economic conditions to the income and expenditure patterns of socio-demographic groups.

Our Household Economics approach combines economic forecasts with Experian’s market leading socio-demographic segmentations: the Mosaic consumer classification (looking specifically at lifestyle and channel preference) and Financial Strategy Segments (FSS) (focusing on financial life stage and affluence).

It is important to understand the different impacts that changes in economic conditions have on households within a particular geographic area. For example, a household that is largely dependent on benefits with one adult of working age and three dependants will be impacted very differently from a household where there are two adults, both in work with no dependants – even if they live within half a mile of each other.

Forecasts are provided for the key components of household incomes and expenditures for each of the socio-demographic segments, to provide a forward looking view of affordability and other drivers of customer behaviours, for example employment rates.

If you want to understand how a particular macro-economic scenario impacts households at a customer segment level, we can take your macro-forecast and disaggregate it across geographic or socio-demographic segments of the UK population.

These household forecasts can be used in conjunction with our local economy forecasts to reflect the differing economic environments within which these household segments live.

What can you use Household Economic forecasting for?

Our data can be appended to a portfolio, a customer base or a specific population. These data are used typically to evaluate customer affordability and customer spending patterns. These data are used in modelling, analysis and decisions in:

  • Retail spending estimates
  • Household income trackers
  • Income and affordability estimates
  • Strategic planning
  • Risk appetite
  • Acquisition of new customers
  • Portfolio strategy
  • Loss forecasting and provisioning
  • Stress testing
  • Collections
  • Portfolio evaluation

Alternatively, we can provide a data block which can be used within a variety of in-house analytics.

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