Ipsos Encyclopedia - Share of Wallet
Definition: Share-of-wallet (SOW) is the percentage of a customer's spend ("share") made in one provider's offerings as a total of spend in all provider's offerings in the cateogry ("of wallet").
Competing firms typically fight within categories over the share they have of each customer's wallets. At the same time, the concept of share of wallet can be expanded to recognize blurred category boundaries as frequently different firms competing for share of wallet do not sell directly competing offerings and instead provide ancillary or complementary product which nevertheless take share of a fixed wallet.
Share of wallet is used in many sectors to understand behavioural loyalty beyond simple "is a customer / is not a customer" dynamics as shifts in share of wallet in many categories drive overall market share.
Related Ipsos Products
Brand Value Creator and Wallet Allocation Optimizer both use share of wallet concepts as core components of the methodologies.
Useful to know
There are similar related to share of wallet concepts used such as "share of stomach" for food and beverages and "share of eyeballs" for media.
