PHILADELPHIA—Do you know how customers shop across different categories—and what piece of their wallet you get? That’s the question Aaron McLean, chief marketing officer at Stuzo, answered on this week’s Convenience Matters, “The Battle for Share of Wallet.”
“Customers shop across different categories, like convenience is going after grocery, grocery is coming into convenience—there’s this cross-pollination of categories happening,” McLean explained.
Customers have different wallets, like a food wallet, a CPG wallet and a fuel wallet. “Because the competition for share of wallet has been intensifying so much, especially in the last 14 months, these wallets are now being spread across” grocery, convenience, dollar stores and even online in e-commerce, he said. Customers have what they typically spend in each wallet, such as buying 10 breakfast sandwiches a month. One retailer might have 50% of the sandwich wallet, while others might split the remaining 50%.The key for retailers is to increase their share—or grab a new part of a wallet category—with each consumer.
“Consumer behavior has been changing, and it’s been evolving rapidly, … with more and more consumers getting more comfortable with buying things online or ordering ahead or getting delivery,” McLean said. “This change in behavior has really heated up competition for share of wallet across categories, especially with digital natives getting even more of that. But it’s also creating a really unique and special opportunity for us right now to be able to capitalize on those new changes in behavior.”
For brands, one way to do that is to create “one seamless, unified experience for the customer,” he said. To do that, he recommended using data intelligently to make customers feel appreciated and special.
“The more you have that relationship, the more loyal you become to that brand, the more share of wallet you spend with that brand, and then the greater customer lifetime value that brand will get has a reward for treating you so well,” he said.
Listen to the podcast for more on how to ensure you’re getting the lion’s share of your customer’s wallet. Each week a new Convenience Matters episode is released. With more than 200 episodes to choose from, the podcast can be heard on Apple Podcasts, Spotify, Google Play and other podcast apps and YouTube and at www.conveniencematters.com. Episodes have been downloaded more than 200,000 times by listeners around the world.