#MRKGsummit2015 @MerkleRKG @MerkleRKG#MRKGsummit2015
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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