Wallet share
Also called share of wallet, SOW
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is wallet share?
Wallet share is the percentage of a customer’s total spending on the products you sell that goes to your company rather than to competitors. A customer that spends $100,000 a year on electrical supplies and buys $40,000 of it from you gives you a 40% wallet share.
How it works
Market share compares your sales with everyone’s sales in a market; wallet share looks inside one customer. You know the top of the fraction from your own sales history, and the bottom has to be estimated: from what businesses of that size and industry typically spend (for example, spend per employee for its NAICS code), by comparison with similar customers, and from gaps, such as products it buys from you without the items that normally go with them.
Wallet share example
A mechanical contractor buys plenty of copper fittings from one distributor but never pipe insulation, which every job needs. That gap suggests the insulation is going to a competitor.
Related terms
- Cross-sellA cross-sell is a sale of a different, related product to a customer who is already buying from you, typically something used with what they ordered.
- Customer churnCustomer churn is the loss of customers, or of their spending, over a period of time.
- Outside salesOutside sales is selling done in person at the customer’s location, such as a job site, plant or office.
- Reorder patternA reorder pattern is the rhythm in which a customer buys an item again, such as a case of gloves every two weeks or a filter every quarter.
