Share Of Wallet - SOW

AAA

DEFINITION of 'Share Of Wallet - SOW'

A marketing term referring to the amount of the customer's total spending that a business captures in the products and services that it offers. Increasing the share of a customer's wallet a company receives is often a cheaper way of boosting revenue than increasing market share.


INVESTOPEDIA EXPLAINS 'Share Of Wallet - SOW'

Increasing share of wallet can be done by adding new products or services that a firm will offer to existing customers. This can also be done by cross-selling services within the same company. As an example, a bank might recommend to an existing client a different service that they offer, such as referring a wealth management client to an individual elsewhere in the organization who might sell the client insurance or arrange for a mortgage. By cross-selling within the bank they can increase their share of the customer's wallet.

RELATED TERMS
  1. One-Stop Shop

    A company or a location that offers a multitude of services to ...
  2. Market Share

    The percentage of an industry or market's total sales that is ...
  3. Revenue Per User - RPU

    A ratio used to express the profitability of a company on a per-user ...
  4. Gross Sales

    A measure of overall sales that isn't adjusted for customer discounts ...
  5. Theory Of The Firm

    A microeconomic concept founded in neoclassical economics that ...
  6. Acquisition Cost

    1. The cost that a company recognizes on its books for property ...
RELATED FAQS
  1. How does a long tail become profitable?

    A long tail becomes profitable because the costs to produce, market and distribute a product or service in a niche are low, ... Read Full Answer >>
  2. How do companies with a large product portfolio use BCG Analysis?

    BCG analysis is used to evaluate an organization's product portfolio in sales planning and marketing. It is specifically ... Read Full Answer >>
  3. What are the similarities between product differentiation and product positioning?

    Product differentiation and product positioning are important elements in a marketing plan, and most marketing strategies ... Read Full Answer >>
  4. Why is product differentiation important in today's financial climate?

    Product differentiation is essential in today's financial climate. It allows the seller to contrast its own product with ... Read Full Answer >>
  5. What are the major categories of financial risk for a company?

    There are many ways to categorize a company's financial risks. One possible perspective is provided by separating financial ... Read Full Answer >>
  6. How has the Internet contributed to the long tail theory of marketing?

    The long-tail theory refers to a marketing strategy that relies on a large variety of slow-moving products to make huge sales ... Read Full Answer >>
Related Articles
  1. Professionals

    5 Services To Usher In New Clients

    Discover ways in which advisors are increasingly choosing to promote their businesses.
  2. Fundamental Analysis

    Great Expectations: Forecasting Sales Growth

    Predicting sales growth can be something of a black art, unless you ask the right questions.
  3. Entrepreneurship

    Getting To Know Business Models

    Learning how to assess business models helps investors identify companies that are the best investments.
  4. Active Trading

    Economic Moats: A Successful Company's Best Defense

    Find out why some companies thrive while others flounder.
  5. Professionals

    Advisors: Get Those Referrals! (Here's How)

    If you're not talking to your clients about referring you to friends, you should be.
  6. Professionals

    How Top Advisors Innovate to Stay Ahead

    Successful advisors are innovative, reaching out to a new generation of clients by embracing new technology.
  7. Stock Analysis

    Will Jet.com Revolutionize Shopping?

    Jet.com has arrived and will look to steal market share from Amazon over the next several years. Will it be successful?
  8. Professionals

    How to Respond to 'I Already Have an Advisor'

    Every advisor has met someone who already works with an advisor. Here are some tips for keeping the door open.
  9. Professionals

    How Financial Advisors Can Woo Wealthy Clients

    To woo wealthy clients, offer the resources they need and design a strategic website and marketing plan to bring those desired clients into your firm.
  10. Investing

    Who Are Millennials and Why Do They Matter?

    With more than 80 million members, the Millennial generation represents a key consumer segment. Ignore them at your peril.

You May Also Like

Hot Definitions
  1. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
  2. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  3. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  4. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
  5. Sin Tax

    A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. ...
  6. Grandfathered Activities

    Nonbank activities, some of which would normally not be permissible for bank holding companies and foreign banks in the United ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!