Customers and pricing
Share of wallet
Our share of what one customer spends in the category.
Facts checked against sources onWhat does Share of wallet mean?
Share of wallet is the share of a customer's total spending in a category that comes to us. A customer who spends 1,000 a year on groceries, 300 of it with us, gives us a 30% share of wallet. Raising it is often cheaper than winning new customers.
Where does it come up in case interview prep?
- Who the customer is: segments by need and by valueLesson in Customers and growth: the economics of marketing
Related terms
- ARPU (average revenue per user)Revenue divided by the average number of users.
- CLV (customer lifetime value)The profit a customer is expected to bring over the whole relationship.
- TAM, SAM and SOMTotal market, the part you can serve, and the part you can win.
- Market shareOur sales as a share of total market sales.
- Relative market shareOur share divided by the largest competitor's share.
- Penetration rateThe share of potential customers who already use the product.
- AOV (average order value)Revenue divided by the number of orders.
- CAC (customer acquisition cost)What it costs, on average, to win one new customer.
Learn it in context
See Share of wallet at work in a lesson from Customers and growth: the economics of marketing, with checks as you go.
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