Oracle Data Cloud Blog

Leveraging purchase data for a whole wallet view

Guest Author

This week’s guest blog post is contributed by Dani Cushion, Chief Marketing Officer, Cardlytics, Inc.

At Cardlytics, we believe the best predictor of someone’s future purchases is what they’ve purchased in the past. To accurately get an understanding of a consumer’s purchase behavior, it’s critical to have what we call a ‘whole wallet view’ – a secure view into where, when, and how consumers are spending their money.

We’re able to gain this holistic view of spend across different verticals, or categories, by looking at a combination of credit, debit, bill pay and ACH data. By better understanding the transaction history of your audiences, you will have an even better view of the consumers that will respond best to your messaging.  

Here are three reasons why the whole wallet view is important when understanding the consumers you want to reach:

1. Consumers don’t use credit and debit equally

Throughout the year, consumers don’t use their credit and debit cards equally – in fact, debit cards actually tend to see more annual spend. The average annual spend per customer for debit is $12,227, compared to just $9,262 for credit.

However, credit cards do tend to be used for larger tickets items. Average spend per purchase for credit is $57.72, while it’s just $39.64 for debit. Additionally, given the amount of big ticket items being purchased around the holidays, credit spend increases more substantially in Q4 than debit spend does.

2. Payment methods differ by category

Not only does the amount of spend change depending on whether a credit or debit card is used, but consumers change cards depending on category as well. While consumers do use both credit and debit cards across all categories, they are more likely to use debit for living expenses like food, gas, cable and cell phones.

Spend in these categories accounts for 42 percent of debit spend vs. just 26 percent of credit. Credit’s average ticket in ‘big ticket’ categories, such as travel, is approximately 48 percent higher than debit’s. In addition, having a view into bill pay data unlocks the ability to see spend in categories that historically have recurring payments, like car payments, gym memberships and home services (such as security, etc.).

3. Your loyal customers might not be as loyal as you think

One of our clients—a popular retailer —knew that 61 percent of their sales were coming from 20 percent of their customers. Based on how these customers were spending with the retailer alone, they appeared to be incredibly brand loyal.

But, looking through a whole-wallet lens revealed a different story. In fact, only 5 percent of these customers were true brand loyalists (spending at least 2/3 of their category spend with the retailer), while the remaining 95 percent just spent a lot in the category, including significant amounts with direct competitors. By using a whole wallet view to better understand their customers, our client was able to more effectively target and convert heavy category shoppers. As a result, they capitalized on the headroom that existed and stole share from key competitors.

Bottom line

To engage target consumers with marketing that is pertinent to them, it’s imperative to understand where they shop, not just in your store, but with every brand and not just looking at one card, but across a range of payment methods. Having a full wallet view provides a foundation for truly relevant marketing.

About Dani Cushion

Dani brings more than 15 years of experience in global brand and agency marketing roles. Prior to joining Cardlytics, she ran brand marketing, research, events, communications, and product marketing at mobile ad platform Millennial Media as the senior vice president of global marketing and communications. Previously, Dani oversaw partnership marketing at Sirius XM, promoting the company’s major media partnerships, including MLB, NHL and Oprah. 

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