Net Worth & Incoming Producing Assets

Net Worth & Income Producing Assets

Net Worth Indicators

Targeting high net worth individuals can be elusive. You know they exist in the market and in your current customer file, but you need a cost-effective way to find them. These households are key targets to cross-sell and cultivate into your most profitable relationships.

Claritas' Net Worth Indicators can help you identify highly desirable households by helping you answer such questions as:

How much are the households worth?
Who are my affluent customers?
Which customers would be most likely to need special services, such as trusts?
Which customers have the greatest growth potential?

Benefits of using Net Worth Indicators

For more successful targeting of high net worth individuals, Claritas' Net Worth Indicators is a tool with many applications. The Net Worth model is based on actual, not forecasted, net worth information from Claritas' annual Market Audit® survey of more than 100,000 households. Net Worth is calculated by subtracting all liabilities, such as loans and mortgages, from all assets, including real estate, investments and cash. Then, the model is optimized using household-level data elements available on the Equifax Consumer Marketing Database. The result is the industry's most reliable indicator of a household's net worth, the Claritas Net Worth Indicators which is appended to your customer file. Here's how you'll benefit:

Superior Customer Management – Net Worth Indicators segment your customers to determine cross-selling opportunities for products and services. It's ideal for targeting mutual funds and annuity products, as well as brokerage services.
Enhanced Targeting For Direct Mail – Reduce your mailing costs and increase your response rates with the improved targeting Net Worth Indicators. Effectively target prospects for new services by segmenting your customer list based on a household's net worth.
Easy-To-Use Output – Unlike traditional rankordering models developed in the past, the Claritas Net Worth Indicators output is the estimated net worth value in hundreds of dollars, rather than a score. There is no translation required to interpret the model, just an indicator for easy identification.
Balanced Risk/Opportunity Model Development – Use the Net Worth Indicators in conjunction with segmentation models, or create your own custom model, to add power and precision to your marketing strategies. Augmenting a risk model with the Net Worth Indicator can allow you to implement innovative strategies for cross-selling or targeting while controlling risk. Net Worth Indicators are available for appending to your current customer file, as well as for determining market penetration and potential via the Net Worth Market Estimates database.

An easy way to target your prospects

Net Worth is defined as a household's total financial assets minus its liabilities. Assets include financial holdings such as deposit accounts, investments and home value. Liabilities include loans, mortgages and credit card debt. The following standard Net Worth breaks are available using Equifax household-level data:

1 = $0 – $24,999
2 = $25,000 – $49,999
3 = $50,000 – $74,999
4 = $75,000 – $99,999
5 = $100,000 – $149,999
6 = $150,000 – $249,999
7 = $250,000 – $499,999
8 = $500,000 – $749,999
9 = $750,000 – $999,999
10 = $1,000,000 +

Income Producing Assets

Proven Technology to Estimate True Affluence

The Key Predictor Of Real Worth

The Claritas Income Producing Assets (IPA) database contains current year and five-year estimates of the number of households. The IPA database includes ten categories of IPA value, and provides estimates for geographies as small as block groups. The IPA database contains the following data breaks:

$2,000,000 or more
$1,000,000 – $1,999,999
$750,000 – $999,999
$500,000 – $749,999
$250,000 – $499,999
$100,000 – $249,999
$75,000 – $99,999
$50,000 – $74,999
$25,000 – $49,999
Less than $25,000

For Marketers That Need to go Beyond Net Worth And Gross Assets

Claritas designed the IPA database to provide a more powerful way to measure segments of the affluent and wealth markets than net worth or gross assets. Because IPA recognizes that as Americans get wealthier, their assets holdings change, it has many advantages over traditional income and net worth segmentation including:

Offers greater discrimination between the high and low ends of the economic spectrum

Clearly delineates segments in the affluent sector

Powerfully predicts consumer demand for a variety of important financial services and products when compared to microeconomic or demographic variables

Use IPA to Target Market:

The Income Producing Assets estimates have many applications for financial marketers, including:

Accurately selecting the best location for new branches
Developing a merchandise mix for individual branches based on the distribution of households by their IPA levels
Locating and analyzing new markets for unique high-end products

Methodology

Claritas' IPA estimates rely on the Market Audit – Claritas' annual survey of more than 100,000 households about financial behavior – as well as Claritas' industry-leading demographic updates and Census Public-Use MicroSample (PUMS) data.