Share of wallet asks how much of a customer's spending in a category goes to you. A shopper buys groceries from five stores. If forty percent of their grocery budget goes to one chain, that chain holds a forty percent share of that customer's wallet.

The metric matters more than market share for businesses built on customer relationships. Banks, airlines, and retailers all watch it closely. Growing share of wallet among existing customers often costs less than acquiring new ones.

Ways to grow share of wallet

• Cross-selling related products
• Loyalty programs with tiered rewards
• Bundling services at a discount
• Improving retention and reducing churn

Pushing too hard backfires. Customers who feel overmarketed reduce spending or leave entirely. The goal is to earn a larger portion of their budget, not to monopolize their attention.