What is Share of Wallet?
Share of Wallet is a core concept in modern B2B revenue. Here is a clear, accurate definition, why it matters, and how Ardovo handles it.
Short answer
Share of wallet is the percentage of a customer's total spend in a category that goes to you rather than competitors. A customer who spends 100,000 dollars a year on tools like yours and gives you 40,000 dollars represents a 40 percent share of wallet. Growing it is a key expansion strategy.
Key takeaways
- Your share of a customer's total category spend.
- Reveals how much more a customer could buy from you.
- Growing it is cheaper than acquiring new customers.
- Closely tied to whitespace and land-and-expand.
Why it matters
A customer who buys a little from you and a lot from rivals is both a risk and an opportunity. Measuring share of wallet reframes expansion around capturing spend that is already happening, just going elsewhere.
How Ardovo handles it
Ardovo ties account revenue to estimated category potential so you can gauge share of wallet and expansion headroom. Rook flags accounts where your share is low despite strong health, a prime cross-sell target.
Frequently asked questions
How do you calculate share of wallet?
Divide what a customer spends with you by their total estimated spend in the category, then multiply by 100. The estimate comes from firmographics and account research.
How is share of wallet different from market share?
Market share is your slice of a whole market across all customers. Share of wallet is your slice of a single customer's category spend. One is macro, the other account-level.