Share of Wallet (SOW) is a key business metric that measures the percentage of a customer’s total spending within a specific product category that goes to a particular brand. This indicator reflects both customer loyalty and a company’s ability to maintain a substantial portion of a consumer’s purchasing budget. A higher SOW demonstrates that a brand has successfully integrated itself into a customer’s regular spending patterns.
From a practical perspective, SOW analysis enables businesses to identify growth opportunities by revealing how much of a customer’s expenditure flows to competitors. Companies can then develop targeted marketing and sales strategies focused on increasing their wallet share through cross-selling, upselling, and loyalty initiatives. By continuously tracking SOW metrics, organizations gain valuable insights into customer behavior and can adapt their offerings more effectively.
Furthermore, boosting SOW represents a strategic priority for companies aiming to maximize revenue without expanding their customer base. This approach emphasizes strengthening existing customer relationships rather than solely pursuing new acquisitions. Through this method, businesses achieve sustainable growth by cultivating deeper brand loyalty and positioning their products or services as the preferred choice within customers’ spending habits.
👉 See the definition in Polish: Share Of Wallet (SOW): Udział wydatków klienta dla marki