Share Of Wallet Definition

Share Of Wallet (SOW) is a metric that quantifies the amount of spending a customer directs toward a particular company or brand relative to the total amount spent on similar products.

For example, if a customer spends $100 per month on groceries, and $20 of that is spent at Company A, then Company A has a 20% share of that customer’s wallet for grocery spending.

SOW can be used as a measure of customer loyalty, as it indicates how much of their spending a customer is willing to direct toward a particular company.

It’s important to note that SOW is different from market share, which measures the percentage of total sales in a market that are generated by a particular company. SOW instead focuses on the individual consumer and their spending habits.