Weekly Edge

Market Share versus Wallet Share

Heather Frame - Friday, April 10, 2015

The principle we have to share with you today is…

We’re not after Market Share

We’re after Wallet Share

You see, chasing market share in today’s business world is a guaranteed formula for chasing your tail.  If buying customers is your biggest expense, then continually buying new customers (buying market share) is the most expensive way to do business.

Market share, or a focus on new customers, comes with an assumption that you’re in the business of buying products or services and selling them to customers.  If however, you move to the idea of buying customers, then your whole ballpark changes.  You’re no longer chasing market share, you’re chasing wallet share.  The issue becomes how much, how many, and for how long can you sell to each customer you buy.

In the world of business, where customer loyalty is everything, you’ve got to know that if you’ve already spent the money to buy a customer then it makes total sense to make sure you get a full return on that customer (your investment).

Chasing wallet share is as simple as remembering that you’ve got a loyal customer base, so what else can you sell to your customers?

Until next week,

Heather & Marcus

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