Share of Wallet, Wealth, and the Multi-Modality of Individuals

Share of Wallet, Wealth, and the Multi-Modality of Individuals

March 29, 2019
Prag Shah

Recently, I spoke  with one of our clients, and they asked, “Prag, isn’t it contradictory that WealthEngine simultaneously serves nonprofit organizations and for-profit companies?” I replied, “I can understand why you would ask, but the answer is no, it’s not contradictory.” Here’s why…

My response drew me back to a core concept in consumer marketing: share of wallet.  In its simplest form, this is how much of an individual’s (or household’s) spend goes to one particular firm, company, or brand versus to others. Does the individual spend more with Company A or Company B? And if I am the head of marketing at Company A, how do I continue to garner more and more spend with my company? There are many articles about share of wallet. One that I find of continued interest, authored several years ago but still very relevant and pointed, is the Harvard Business Review article written by T. Keiningham, et al.  The authors do a great job of distilling the idea that customer satisfaction or loyalty does not necessarily mean an increase in share of wallet.

Because share of wallet is anchored to the individual [or household], it is essential to think through the various modes that the one individual is operating within their daily life.  Think about your own week or month. In one moment, you may focus on saving for a down payment on a house; your 401k; working with your financial advisor; or, like me as a father of a high schooler, your child’s college fund; and so on.

In another part of your life, you may be buying a new car;  a costly but dream vacation; a high-end luxury watch as an anniversary gift; and so on.  And in another moment,  you may focus on giving by donating to a  cause that is near & dear to you; giving to your college alma mater; deciding where to grant funds from the family foundation your grandparents set up (as is often the case for families with cross-generational transfer of wealth); and so on.

This dynamic of saving-buying-giving is ever present. This dynamic is apparent with different degrees of spend across the three arenas, depending on complex financial, lifestyle & personality attributes. All of it then drives your wallet and how and where you’ll distribute your dollars.  The job of a wealth advisor is to tap and grow the wallet in saving mode.  This can then cross into giving and spending mode depending on your goals. The job of a CMO at a luxury retailer or automotive company is to tap your wallet in buying mode. The job of the VP of Advancement at your alma mater or the VP of Development at ‘’, is to tap your wallet for more and continued giving of charitable donations.

So, that brings me back to the initial question: how does WealthEngine serve for-profit companies and nonprofit organizations simultaneously?

Given the multi-modality of individuals, WealthEngine is in the business of providing wealth intelligence (e.g. wealth data, wealth models, insights, predictive analytics & modeling, etc.) to sharpen the prospecting and outreach of those nonprofits seeking the individual in giving mode, of those wealth advisory firms seeking the individual in saving mode, and of those luxury retailers, luxury service providers, and luxury real estate brokers of those individuals in buying mode. With money and life always on the move, modern technology platforms enable this data-driven outreach in powerful and efficient ways. These rich (ha, sorry for the pun!) data sets and insights feed across platforms via standard API integrations. Custom predictive models can be built & enabled to feed the CRM & marketing platforms for CMOs & VPs of Advancement/Development. This allows CMOs and VPs to quickly activate and reach individuals in streamlined, targeted, and measurable ways.

Ultimately all roads lead to the individual. In this case to his or her wallet and your firm’s ability to tap a disproportionate share of it, continuously.

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