July 17, 2017 – Marketers spend a ton of time, money and energy to find out where their customers are so they can more effectively target and engage consumers at the right place and the right time. Turns out, a customer’s spending habits can reveal a lot. Where are customers spending before and after they visit a particular store? Where are they taking their card out most frequently, and in which categories? Perhaps their decision isn’t being made when they’re on Facebook at home, but it’s as they’re stopping for lunch, thinking about where they’ll shop afterward.
Sure, some data points may be obvious. For example, we know that people who travel regularly also spend more than the average consumer on rental cars and hotels. But some data points may surprise you. These connected commerce moments tell a detailed story about where customers are and how to most effectively engage them. Using VisaNet data, we took a deeper look at three customer journeys and share what surprising connections emerge.
The daily grinder1
First, we looked at people who frequently buy coffee and found that they spend 2 times more on retail than the average consumer. Surprising? Maybe not. But this got us thinking about spend frequency: Does spending more often on coffee translate to spending more often on retail? It certainly does. People who buy coffee frequently spend 3.8 times more often in retail than the average consumer2.
We were curious how this data might differ by city. As expected, people who buy coffee often in San Francisco spend 2 times more on retail and shop 4.1 times more often than the average Visa cardholder. But we were in fact surprised to find that people in Miami and Dallas, two cities that couldn’t be more different than San Francisco, also had similar spending habits. Las Vegas topped them all when it came to spend frequency: People who buy coffee frequently spend 5 times more often on retail. Las Vegas retailers may want to think about hiring some baristas!