Don't Try And Take Wallet Share, Rather - Give More Value

Wallet share (also referred to as Share of Wallet or SOW) gets bandied around a lot. A crude interpretation might have you asking: 'How can I get more money out of my existing customers?'

A more sophisticated (and infinitely more profitable) question is: 'What else can I offer my existing customers that they would find valuable?' This will lead to a fair exchange and help you increase BOTH wallet share and customer satisfaction.

Wallet share is the amount of the customers' total spending in any particular category that you are capturing.

Increasing wallet share cost way less than increasing market share. Sell more to people who already know and trust you.

Are you being completely candid with your customers?

Or are you hiding some of your lights under a bushel? Is it possible that 50% of your regular clients only ever book for a hair cut and style because they don't even know you offer make up, manicures and style advice?

This doesn't mean you should suddenly drown your loyal customers in tidal wave of promotions. But how about a simple: 'Did you know?' email next time you do a mail-out. Run it with a special offer linked to your customers' existing regular service and you will make it very attractive for them to give you more of their wallet share.

Ask Your Customers What Else They Would Like

This is so simple, but so few businesses do it. The key to increased wallet share is to understand your customers' needs. People crave simplicity when it comes to choice and buying. "You know if you guys did this or had this, we'd purchase it from you as well."

The corn chip people made a bundle when they added 'salsa dip' to their range. People were already buying these products together but from different suppliers.

Sure, people shop around for value. But if they know you already give them value and then you offer a product they used to have to go elsewhere for - they will gladly give you more wallet share. Ask the question and find out what your customers want.

Find Out What Your Competitors Are Doing

You know who your closest competitors are. And who the benchmark businesses in your field are. What do they offer customers beyond the basic product or service? Don't compete directly on these extras for wallet share. Identify gaps they are not yet filling. Be inspired and challenged by the extra miles they are going. And then continue to run your own race.

Communicate And Be Present In Your Customers' Lives

Online marketing is an excellent way to introduce all of your services / products over time to your customers. They will gradually open up more and more of their wallet share as they get to know you and come to rely on you for information, reliable tips and the latest trends.

Will a loyalty programme improve frequency and stem the flow of leakage to your competitors? When constructed in a creative and meaningful way, people respond well to loyalty programmes. If they know their 6^th purchase from you is free, this is strong motivation for them to buy the first five purchases more quickly than they otherwise would.