Share of Wallet

Also known as SOW or Wallet Share. The percentage of a customer’s spending in a specific category that’s captured by a particular brand or company. In the context of the channel, the customer is typically a partner, while the brand or company is a vendor. Many vendors assign value to a partner based largely on how big their wallet share is with that partner, but 2112 contends that vendors should assess value by looking more broadly at partner performance, stability, growth, and consistency. At the same time, partners should consider “diversifying their assets”; that is, they shouldn’t rely too heavily on the products and services of just one vendor (or even a few) for revenue and profitability.

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