Increasing Share of Wallet is a Sales Catalyst

Vic Hunter
Vic Hunter
Vic is founder and president of Hunter Business Group LLC. He is nationally know
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Jun 19 Sales Effectiveness 0 Comment
Increasing share of wallet is a sales catalyst, an agent that provokes and speeds significant change in customer revenue

Selling more products to more individuals in your existing accounts increases share of wallet.  Existing accounts are easy to target.  Selling to existing accounts is easier to execute and costs less that new customer acquisition.  Selling more products that you already have increases turn and improves your return on investments in products.  Increasing share of wallet improves customer loyalty.  

Sounds Interesting?  So, why is it so hard?

Let me offer 10 pretty good reasons or excuses for why increasing share of wallet is not realized as the primary growth catalyst in business today.

1. My customers do not know my entire offering.
2. My sales people don’t feel comfortable talking about parts of our offering- they have their favorites.
3. We don’t define our product lines around customer applications, so it just doesn’t work for us.
4. We have long purchase cycles and cross selling does not fit our business.
5. Our product lines are so fragmented that no patterns exist.
6. We don’t really understand how our products are being used.
7. We sell through distributors, so we don’t know or track what our end customers purchase.
8. Our sales people are not equipped or trained to sell our entire product line.
9. Our customers are each so unique that this will never work for us.
10. We do not measure our business that way.

I didn’t just make up this list.  I wrote down what I have heard and seen over the years.  Most companies do not get serious about breaking through these obstacles, yet some do!  And, what do those companies that become more customer focused on share of wallet have in common?  I would offer five (5) elements.

1. A simple measure of product line penetration.
  a. Available for real time calculation and reporting.
  b. Projects in a formula directly to corporate revenue growth.
  c. Measures performance improvements at both the customer and the sales rep levels.

2. Simple growth goals based on this measure that also predict opportunities.
  a. Built on logical, defendable and rational observations of current buying behavior
  b. Quantify potential
  c. Prioritize investments in sales strategies

3. Compelling value propositions are tied to customer applications
  a. Based on an objective understanding of product and service pain/ failure points.
  b. Delivered from customer centered training within market segment
  c. Driven by benefits

4. A standard sales protocol is used for customer engagement
  a. Validates application and customer profile data
  b. Recognizes and expresses appreciation for products and services purchased in the past
  c. Investigates and documents competitive offerings
  d. Alerts sales rep to risk of declining performance

5. A timely recognition and reward program
  a. Measures improvements in quantifiable steps
  b. Reflects comparative performance for all sales reps
  c. Rewards incremental levels of performance

It is possible to use share of customer wallet as a sales catalyst.  I look forward to developing each of these five areas of the program over the coming weeks.

About the author

Vic Hunter

Vic is founder and president of Hunter Business Group LLC. He is nationally known for his expertise in business-to-business direct marketing and service to the nation's leading companies.


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