consideration sets & wallet share - merkle inc. · consideration sets & wallet share george...

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Consideration Sets &Wallet Share

George Michie

Chief Marketing Scientist, Merkle|RKG

#MRKGsummit2015 @MerkleRKG

#MRKGsummit2015 @MerkleRKG

Agenda

» What is a consideration set?

» Implication for customer acquisition

» Gaining prominence

» Why cross-sell is key

» The omniscient marketer

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Time to Buy a Blouse

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Acquisition = Fighting for the “Other” & Earning a Slice

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Anthropologie16%

Land's End16%

Ann Taylor17%

Express17%

The Gap17%

Other17%

Wallet Share

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Wallet Share = Gaining a Bigger Slice

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Wallet Share

Anthropologie23%

Land's End16%

Ann Taylor16%

Express15%

The Gap15%

Other15%

Gained

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Traditional Wallet Share Vehicles

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Cross-selling &Up-selling

Loyalty Programs

Email & CatalogBlasts

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Squeezing in a Second Brand

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Wallet Share: The Multi-Brand Strategy

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Wallet Share

Gained

Anthropologie15%

Land's End15%

Ann Taylor14%

Express14%

The Gap14%

Other14%

Urban Outfitters14%

Combined Share

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Time to Buy Some Shoes!

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Same Logic Applies to Category Expansion

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Gardening

Children's Extras

HouseholdWares

Entertainment

Other Categories

Apparel

Discretionary Spending

CasualWear

Shoes

ActiveWear

Underwear

DressClothes

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Audience Targeting for Wallet Share in 2015

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Traditional Vehicles, plus:

Display Re-Targeting

Facebook Custom Audiences /Twitter Tailored Audiences

Geo-Fenced Mobile Display / In-Store Beacons

SMS

RLSAs

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We have more data and tools than ever to complete the picture.

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Her search query

Her past behavior onyour site

Her history with your brand online and offline

Her social network and activity

All of her online activity

All of herpurchase history,

online and off

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What will we do with all this knowledge?

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Knowledge of Wallet Share!

» Julio and Kai each made 3 purchases in the last 12 months for $200

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Other Brands

Your Brand

YOUR CATEGORY

Other Brands

Your Brand

YOUR CATEGORY

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Knowledge of Competitors

» Sophia and Joyce: each bought a $75 dress from you last week

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Sophia Has High-Priced Taste

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Your Brand

Talbots

Ann TaylorNieman Marcus

VeraWang

Saks 5th Avenue

APPAREL

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Joyce is a Simple Gal

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Your Brand

Marshalls

WalmartKohls

Gap

Guess

APPAREL

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How Fragmented is Her Wallet?

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Brand 19%

Brand 29%

Brand 39%

Brand 49%

Brand 58%

Brand 68%

Brand 78%

Brand 88%

Brand 98%

Brand 108%

Brand 118%

Brand 128%

Brand 134%

Brand 233%

Brand 333%

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Overlaid Attributes Create Smart Narrower Clusters

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Location

WalletOpportunity

DemographicsPurchase History

Competitor Set

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Operational Limitations

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PersonalizedUniform Granularity of Messaging

$

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Operational Limitations

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PersonalizedUniform Granularity of Messaging

$

#MRKGsummit2015 @MerkleRKG

Operational Limitations

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PersonalizedUniform Granularity of Messaging

$

#MRKGsummit2015 @MerkleRKG

Thank You!

MerkleRKG.com | Merkleinc.com

George MichieChief Marketing Scientist, Merkle|RKG

@GeorgeMichie1

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