Share of Wallet (SOW)

Share of wallet (SOW) is a marketing metric that measures the percentage of a customer's spending that is attributed to a particular brand. It is calculated by dividing the brand's sales by the total sales of all brands in the same category.

SOW is a valuable metric for marketers because it can help them to understand how their brand is performing relative to its competitors. It can also be used to identify opportunities to grow market share by targeting customers who are currently spending their money with other brands.

There are a number of ways to measure SOW. The most common method is to use sales data from a customer's purchase history. However, it is also possible to estimate SOW using data from surveys or other research methods.

SOW is a valuable metric for marketers, but it is important to understand its limitations. For example, SOW does not take into account the number of customers who are using a brand. This means that a brand with a high SOW could still have a smaller customer base than a brand with a lower SOW.

Additionally, SOW can be influenced by factors other than marketing, such as price, product quality, and customer service. This means that it is important to consider other factors when evaluating the performance of a brand.

Despite its limitations, SOW is a valuable metric that can help marketers to understand how their brand is performing relative to its competitors. It can also be used to identify opportunities to grow market share by targeting customers who are currently spending their money with other brands.