Many people are familiar with the 80/20 principle in marketing. Which is that 80% of your revenues will come from about 20% of your customer base.
However, there is another concept which you can use to help increase your profitability. This is whats known as "share of wallet."
Share of wallet is what percentage of a customers spending in your product cataloger is spent on your company. Think of it this way. You offer health and wellness products. Your customer is a devoted health enthusiast.
They spend on average $25 a week on products from your company. They also spend $13 a week on company B, and $31 a week on company C.
This means the total spending by this customer is $69 per week, of which you have a $25 share of wallet or 36%.
By analyzing your customers spending habits and devising ways to increase your brands share of wallet - you can increase your company profits.
However, there is another concept which you can use to help increase your profitability. This is whats known as "share of wallet."
Share of wallet is what percentage of a customers spending in your product cataloger is spent on your company. Think of it this way. You offer health and wellness products. Your customer is a devoted health enthusiast.
They spend on average $25 a week on products from your company. They also spend $13 a week on company B, and $31 a week on company C.
This means the total spending by this customer is $69 per week, of which you have a $25 share of wallet or 36%.
By analyzing your customers spending habits and devising ways to increase your brands share of wallet - you can increase your company profits.
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