Share of Wallet
Share of Wallet (SOW) is a metric that reflects how much of a customer’s spending in a given category goes to your brand.
Simply put:
How much of the “customer’s budget” you get.
How it is calculated
Share of Wallet = (Customer spending on your brand / Total customer spending in the category) × 100%
Example
If a customer:
- Spends €200 per month on coffee
- Of which €50 is spent at your coffee shop
Then:
(50 / 200) × 100% = 25%
Your Share of Wallet = 25%
Why this metric is needed
It helps to:
- Assess the depth of the customer relationship
- Understand growth potential without acquiring new customers
- Identify opportunities for upselling and cross-selling
- Increase LTV (customer lifetime value)
How to increase Share of Wallet
- Expand product range
- Offer complementary products
- Use personalized offers
- Implement loyalty programs
- Improve service and customer experience
Where it is used
- Banking and fintech
- Retail and e-commerce
- Telecommunications
- SaaS and subscription services
Difference from Market Share
- Share of Wallet — share within a single customer
- Market Share — share of the market across all customers
Key takeaway
Share of Wallet shows how much of a customer’s category spending your brand captures. It is a key metric for growing through existing customers, not just through acquiring new ones.
