The customer wallet
We have researched changing customer demographics and resulting impacts on income and spend, including how people are spending money, what they are doing with their money, and how they are changing what they spend and where — including the new customer value chain and channels.
Many organizations still believe that their primary competition is a rival company in their own industry — but our research and experience continue to show that our only true competitor is the customer wallet.
In 2017’s inaugural Me, my life, my wallet report, we analyzed wallet outflows — specifically, how changing customer attitudes and expectations were affecting the consumption and spending mix. This year we’re looking at wallet inflows — especially income, wealth and related impacts on spending.
Across the globe, factors ranging from income, taxes, education, retirement, debt and interest rates all converge to influence the shape of individual customer wallets. The changing nature of careers and employment is impacting the inputs to the wallet, whether through the growth of the gig economy and contingent labor, or the emergence of semi-retirement and second careers. How we live and our attitudes towards — and the affordability of — home ownership is unleashing its own profound impact on the spending and saving priorities of younger generations. The transfer of assets and wealth differs by generation and geography, and is only subject to further change as longer living and increasing healthcare costs make their mark.
Understanding the totality of factors influencing the wallet, the interrelationship between income, consumption and spending, as well as new ways to explore, buy and receive products and services is crucial. Only then can we hope to recognize our true competition, and determine how to position effectively against it.
of gen Xers say their child
influences their buying or
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