Definition: Share of wallet (SOW) refers to the percentage of a customer's total spending within a specific category that is captured by a particular company or brand. It measures how much of the customer's budget for a category is spent with a single provider, compared to competitors in the same market.
Importance: Understanding and increasing share of wallet is crucial for businesses aiming to enhance customer loyalty and maximize revenue from existing customers. By focusing on increasing SOW, companies can improve profitability without the higher costs associated with acquiring new customers.
Strategies: To increase share of wallet, companies can employ various strategies, such as personalized marketing, loyalty programs, cross-selling, and upselling. These approaches aim to deepen customer relationships and encourage more spending within the brand, capitalizing on existing customer bases rather than solely focusing on new customer acquisition.
The only AI SEO Platform that accelerates Audience and Keyword Research, Content Creation, Improvement, and Distribution for Organic Growth on Traditional and AI Search Engines
Learn More