Drop has partnered with Highland Math to bring their millennial-centric transactional data to the Snowflake Data Marketplace and to drive their data monetization business. Drop is a technology company delivering shopping rewards to their customers. They’re bringing their anonymized transaction data to give insight into millennial spending patterns. Organizations can gain access to insights on a panel of over 830K consumers based mainly in the United States and Canada.
Transaction Data Use Cases:
As Data Science teams leverage the internal data of an organization to help decide on what new products to buy, most optimal pricing, or even the decision of where to open a new store, the thirst for external data grows to help aid in these decisions. These retailers can utilize external transaction data to better understand where their customers are shopping in addition to their store, instead of their store, and so on. In addition, a store’s insight into their customer is only limited to the scope of their business. Experian explains that brands and retailers need to take an “Outside-In” View when utilizing transaction data. A retailer takes internal transaction data to try to predict what a customer may buy next. That said, it has no insight into their customer’s overall wallet share within the category, complimentary brands that could be partnered with for a collaboration, or opportunities to expand product offering to replace a customer’s “extra stop”.
Retail and Brand Benchmarking
Retailers and brands can gain insight into the consumption habit of their target customers to understand the competitive landscape of their industry. These insights can inform store performance by location relative to other competitors. For example, if a Grocer wanted to better understand market performance in the greater Boston area, they could break down transactions to the competitive landscape, and then make decisions to address their insights. Are we underperforming relative to the rest of their market? Where are consumers shopping instead of our stores? As McKinsey illustrated, “The fight is on”, and groceries should be asking an important question, Are we losing market share to a grocer with online shopping?
Financial Institutions can use this data to better understand the millennial consumer and utilize these insights to help make decisions about future performance of a company. As described by Bloomberg, hedge fund Point72 utilized credit-card transaction data as a source to help them short Weight Watchers after seeing that competitors were gaining momentum. Drop aims to fill a void in the space by offering these insights on a younger demographic as 88% of their customers are under 40 years old.