Determine your socio-economic segment based on the South African Living Standards Measure.
What is the LSM?
The Living Standards Measure (LSM) is the most widely used marketing research tool in South Africa. Developed by the South African Audience Research Foundation (SAARF), it divides the population into 10 groups, from LSM 1 (lowest living standard) to LSM 10 (highest living standard).
Unlike traditional measures, the LSM does not ask how much money you earn. Instead, it uses a list of variables—such as whether you own a washing machine, live in a metropolitan area, or have access to hot running water—to determine your standard of living.
How the Calculation Works
The calculator uses 29 specific variables to place a household into a category. These variables are weighted differently based on how strongly they correlate with a higher or lower standard of living.
Common LSM Variables include:
- Geographic location: Are you a metropolitan dweller (250,000+ residents)?
- Household Assets: Do you own a microwave, dishwasher, tumble dryer, or home theatre system?
- Services: Do you have a built-in kitchen sink, a flush toilet inside the house, or a home security service?
- Communication: Do you have a smartphone, a landline, or a PayTV (DSTV/StarSat) subscription?
- Transport: Do you have a motor vehicle in the household?
Understanding the 10 LSM Groups
Once you use the calculator, you will be placed into one of the following segments:
- LSM 1–3 (Low): Characterized by rural living, limited access to services, and minimal ownership of luxury durables.
- LSM 4–6 (Middle): The “Mass Market.” These households typically have access to electricity, water, and basic appliances like refrigerators and stoves. They are often urban-based.
- LSM 7–8 (Upper Middle): Higher ownership of technology (computers, smartphones) and motor vehicles. Full access to urban services.
- LSM 9–10 (High): The most affluent segment. Characterized by ownership of high-end appliances (dishwashers, air conditioners) and residence in metropolitan suburbs.
Why Use an LSM Calculator?
1. For Businesses & Marketers
If you are launching a product in South Africa, you need to know which LSM group your target customer belongs to. For example:
- Shoprite primarily targets LSM 1–6.
- Woolworths primarily targets LSM 8–10.
2. For Social Research
LSM provides a more accurate picture of a household’s “wealth” than income alone, as self-reported income is often inaccurate or fluctuates in the informal economy.
3. For Personal Insight
Many South Africans use the tool to see where they sit relative to the national average and to understand the variables that define “standard of living” in the local context.
Frequently Asked Questions
Why is income not included in the calculator?
People often under-report or over-report their income. Assets (like a fridge or a car) are more reliable indicators of long-term economic stability and purchasing power.
Is LSM still the standard?
While newer models like the SECs (Socio-Economic Cohorts) are being introduced, the LSM remains the “language” of South African advertising and media planning.
Does my LSM change?
Yes. If you move from a rural area to a city, or buy a car and a washing machine, your score will increase, reflecting a change in your standard of living.