Segmint Releases New Study on the COVID-19 Impact on American Spending, Uncovering Surges as High as 600%

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Using proprietary transaction analytics and taxonomy, Segmint Consumer Spend Insights track how American spend has shifted in key categories like grocery, fitness, home improvement and more.

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Data in the Segmint Consumer Spend Insights helps tell a story about how events, like the pandemic are shaping behavioral changes in our communities

American spending has changed in many categories due to the COVID-19 pandemic and Segmint Consumer Spend Insights Powered by KLIs is exposing some of the most interesting shifts. One of the most astounding trends found is that as every state opened their economies in different stages, hair salons experienced a 600% increase in spend from the first week in May to the last week of May.

Segmint Consumer Spend Insights analyzed data across a panel of 600,000 consumers and more than 150 million transactions from January 2019 to May 2020 to identify shifts in the way Americans transact in key categories and channels. This powerful report has identified that the Coronavirus pandemic has caused dramatic shifts in year over year spend, as well as in the 10 weeks post pandemic compared to the first 10 weeks of the year.

“Data in the Segmint Consumer Spend Insights helps tell a story about how events, like the pandemic are shaping behavioral changes in our communities,” said Adam Craig, Segmint’s president. “Data is a critical tool for all businesses to understand what is happening in the market and react intelligently. Segmint is proud to leverage our proprietary technology to help to tell the story clearly and accurately.”

Over the past few months, many American’s have felt pressure to remain productive with home projects, keep up on their fitness regime, or evolve their skillset with online education. Consumer spend at butcher shops, local hardware stores, and restaurant delivery services surged in the weeks since the pandemic and associated shutdowns began.

Additional findings identified by Segmint Consumer Spend Insights include:

  • Stores with both an online and brick and mortar presence saw a 261% year over year increase in online sales in May. Although most sales were still in-store, there was a clear shift in willingness to purchase online.
  • Spend on online education, such as EDx and Udemy, was up 397% year over year in May, reflecting a desire for people trying to learn and develop new skills as they spent more time at home.
  • Consumers spend at local gyms was nearly zero in May as consumers shifted dollars to online and at-home fitness subscriptions, where spend increased 55% year over year.
  • The average grocery ticket increased 27% from $40 in January to $51 in April showing that consumers took extra care to plan and minimize the number of trips to the store.
  • Local butcher shops benefited from the #ShopLocal movement and from news about COVID-19 outbreaks at meat processing plants. The average ticket at the butcher shops doubled from $35 in January to $70 in May.

Segmint is a data company that assists financial institutions, retailers, and other organizations in cleansing, understanding and leveraging their data. Segmint provides industry and customer insights through advanced tagging, categorization, and contextualization of transaction data. Segmint’s data insights are used by organizations to inform strategies, including competitive analysis, risk assessment, marketing, customer experience, and product innovation. Segmint’s spend categorization process uses 10x more detail than its competitors with over 96% accuracy to provide more meaningful and specific insights.

Segmint leverages its patented technology and artificial intelligence (AI) to take a bank’s data and assign Key Lifestyle Indicators® (KLIs) to each customer based on real-time transactional behavior, actual activities and interests. Through these KLIs, Segmint can track shifts in consumer spending over time.

Segmint Consumer Spend Insights will provide new stats on consumer spend and the economy on a regular basis at http://www.segmint.com. To see the full report, for media inquiries, or for research specific inquiries, please contact Segmint at PR@segmint.com.

About Segmint

Segmint empowers financial institutions and financial technology providers to easily understand and leverage data, interact with customers, and measure results. Derived from billions of transactions, Segmint provides the fastest and most accurate customer insights through advanced data tagging, categorization, and contextualization. Our insights enable all functions of an organization to inform strategies including competitive analysis, risk, marketing, customer experience, and product innovation.

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Rachel O'Neill
Segmint
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