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Monitoring and Planning Customer Market Share with CRM

To weather economic downturns, companies implement a variety of measures across lines of business. One key focus in the sales area is increasing market share by focusing on valuable customers and increasing wallet share. Wallet share indicates the percentage of total demand for a given set of products and services that a selling company fulfills with their products and services.  

Due to the strength of existing relationships, focusing on increasing wallet share is typically more efficient and expends less resources than the acquisition of net new customers. Development of a strategy to increase wallet share is recommended if there are many customers but only a few with high wallet share. Increasing wallet share can be accomplished by introducing new products or services that compliment existing purchases at current customers, or by cross-selling value added services within the same company. Of course, in theory, if the customers’ needs have already been met (100% wallet share), the situation demands new customer acquisition.

In industries where 3rd party market share sources are not available, measuring wallet share requires a bottom-up approach of analyzing share at an individual customer level, then aggregating within and across customer segments and geographies with the intent of identifying areas of opportunities and threats.

The following picture depicts a process for analyzing and planning Customer Market Share and developing sales strategies to address the results.


Performing such analysis of Customer market share data can help sales and marketing organizations answer questions as follows:

  • Where is free market share that we could capture with our products?
  • Where can I win back share from competitors in established customers?
  • Which customers do I need to visit to grow share?

Results shall help to determine follow-up actions, develop growth strategies, set market-based quotas, etc.

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  • For many years our company has been tracking and analyzing "Market Share" information.  We get this from some of the big vendors(Nielsen, IRI) and some smaller ones in other countries outside of the US.  We have a very detailed submission model to allow for our Corporate office to review changes in these types of information.
    The level of importance is very high, reaching our CEO which obviously supports investing in this type of information.
    This has been an area of SAP which really hasn't seen any good activity in years, and consequently since Colgate is a huge SAP show hasn't progressed much for us as well.
    We have loaded some of this information into our SAP Business Warehouse for reporting but we don't honestly have a "strategy" yet...however I would really like to hear what others are doing and hopefully get some ideas.
  • Hi,

    The company i'm working for registers the share of wallet information in Excell based tools which are not integrated in SAP CRM. As they are now thinking to upgrade from 4.0 to 7.0, is there a standard functionality in 7.0 to capture the share of wallet?

    Best regards,