Strategies to Grow Share of Wallet
What is Share of Wallet?
Share of wallet, also known as wallet share, is a marketing tool to calculate how much consumers go to spend at a specific retailer within a given period. For example, if a consumer spends $500 per month or year. That is their share of wallet towards your business.
An increased share of wallet means that customers are loyal and something working! However, the ideal situation is to continuously grow the share of wallet to ultimately win over market shares.
How can this be achieved? With great customer service, suggestive products and services, and a solid consumer retention program!
A retailer who can upsell or suggestive sell to consumers will find that the extra spend is relatively easy to gain because the consumer is already there in your store purchasing something. You can use that opportunity to suggest other products and services that they would benefit from.
A classic example is at McDonald’s when they ask if you, “would you like to upgrade to a combo?” or, “would you like fries with your order?”. By suggesting smaller items that complement the main purchase, such as the combo upgrade or muffin, it goes toward increasing the share of wallet.
Many grocery stores and restaurants have already jumped on the bandwagon by offering supplementary products to their main product to increase their share of wallet. For instance, if your main product is a jar of pasta sauce, why not suggest cheese or other condiments to go with it? In that very moment, as you’re cashing out each customer, it is your chance to upsell!
Point of Purchase Sales
The placement of products in the store can make a huge difference, especially within grocery stores. Have you ever lined up to pay in a grocery store and noticed packs of gum, chocolate bars, and promotional items? They’re placed there for a reason!
It is important to plan the outline of your store strategically. Place small items and promotional items near the cash registers to encourage customers to grab them as they line up to pay.
Build a Lifetime Relationship with Value and Service
Create a buying habit among your customers so it’s not a one-time deal. If you can provide an added value to the customer service experience in addition to your excellent product, then you have a higher chance of developing a lifetime relationship with your customers.
Apart from simply asking at the point of sale as in the McDonalds’ example, retailers can increase their share of wallet by using online advertising techniques like behavioral targeting to bring customers back to spend more. Gourmet Ads can also use advanced retargeting strategies to reach your existing customer base as well as consumers most likely to purchase your products in the future.
Another key strategy for increasing share of wallet is using online coupons. These online coupons could require consumers to purchase a product first, then get a discount on the 2nd product. Once again, Gourmet Ads can develop a campaign to drive coupon downloads and engagement at your target audience, thus Increasing your share of wallet.
This will not only help with your share of wallet, but it will drive your online presence and branding. It will go perfectly with social media and email marketing campaigns to get consumers into your store. With the online coupons, it also encourages current customers to purchase more.
If you need help growing your share of wallet, contact us! We will help you achieve a highly engaged audience of grocery buyers and household cooks online!