Share of Wallet
Share of wallet (SOW) is a measure of how much of a customer's spending is allocated to a particular company or brand. It is calculated by dividing the amount a customer spends with a particular company or brand by the total amount the customer spends on all products or services in the same category.
For example, if a customer spends $100 per month on groceries, and $50 of that is spent at a particular grocery store, that store has a 50% share of wallet for that customer.
Companies often track their share of wallet to understand how they are performing relative to their competitors. A high share of wallet may indicate that a company is meeting the needs of its customers and providing value, while a low share of wallet may suggest that the company needs to improve in order to win more business from its customers.
There are several ways that companies can increase their share of wallet. Some strategies include:
- Offering a wide range of products or services that meet the needs of customers
- Providing excellent customer service
- Offering competitive pricing
- Creating loyalty programs to encourage repeat business
Developing strong relationships with customers through personalized marketing and communication.