Meniga & Wrapp proudly announce the release of their latest product based on transaction-data: the Consumption Index. This baby has been designed and produced in Stockholm by Meniga after the incorporation of Wrapp and its talented data-scientists. On Wednesday the 16th the Index will be available to anyone who wishes to have an overview over consumption trends in Sweden.
What is it?
As the name states, the Consumption Index, is a web-based service offered for free that, through the provision of indexes, allows users to follow trends and consumption patterns in real-time. These indexes are based on transaction-data that is received by Wrapp’s users who have connected their payment cards to the app in order to receive cash-backs when shopping. Wrapp receives a massive amount of transaction-data every day. In fact, we have collected so far more than 136 million card-transactions and are currently collecting on average two transactions every second. This data is now being used to help marketeers, industry experts, journalists or any curious soul to learn more about current or past consumption trends.
Furthermore, there is an index for each industry category. For example, there is one for Fashion, Health & Beauty, Travel and Food & Drink. After the user selects the desired category, it will be possible to view a graph that shows consumption patterns based only on that specific category in relation to the overall market which includes all other categories. What is more, information on average amount spent, average time between purchases of a single consumer and customer demographics, are shown for the specific chosen category.
It is also possible to dive even deeper into the data and select subcategories within a specific category. For example, the category Home & Garden will contain the subcategories Furniture and Plants & Flowers. The user will then view the consumption trends of the subcategory against the ones of the category it is included in.
As if it wouldn’t be enough, one may even select certain brands in specific categories and compare their consumption index to their market’s. However, it is not possible to view a comparison of different retailers’ performance. In order to do this, the user will have to try Wrapp for Business.
How is the Consumption Index calculated?
The vision was to create a measurement of consumption which is as easily understood and interpreted as a stock-market index. So, one may define the Consumption Index as a statistical measure of changes of consumption based on transaction-data. The Consumption Index is grounded on the total sales in Wrapp's system, adjusted to the number of consumers using Wrapp’s app, and divided by an index value, so that companies and categories can be compared even if they have different scales.
How can this information be used?
The data displayed through the Consumption Index can be used in a variety of ways. A marketeer can for example use the data index to check how past marketing campaigns have performed in comparison to the market. A journalist or analyst may search trends and make connections to current events in a specific industry or in the economy. Moreover, due to the possibility of viewing competition’s performance as well as customer demographics, a business owner may receive valuable business insights that will enable strategic decisions that were previously impossible to conceived. We are sure that a lot more uses can be made with this hefty tool that we cannot even imagine yet. We are not fully aware of all the possible outcomes that providing this service for free will have but we are certain that the knowledge will improve the ecosystem in which consumers and brands operate to everyone’s benefit.