Share of wallet (SOW) refers to the percentage of a customer’s total spending within a category that goes to a specific company. In other words, it measures how much of a customer’s budget for a product or service is captured by your business versus your competitors.

Formula:

SOW = (Customer spend with your company ÷ Total category spend by customer) × 100%

Example:

If a company spends $10,000 annually on CRM software and $6,000 of that goes to your solution, your share of wallet is: ($6,000 ÷ $10,000) × 100 = 60%