Multi-channel marketing continues to evolve. What was previously brick-and-mortar combined with an online presence is now both plus email marketing, Twitter, Facebook, LinkedIn, Snapchat, Pinterest — the list grows daily. Traditional marketing fixated on growing market share by expanding the customer base. Today’s marketers aim to do that and much more; they’re seeking to increase customer loyalty through engagement programs that result in a larger share of wallet. How can both co-exist and collaborate?
Conquering market share means acquiring high volumes of “net new” customers. In keeping with a more traditional approach, having more customers typically means an increase in sales for a specific market. Employing market share strategy remains valuable but organizations must adapt to changing times. Newer technologies — especially social channels – have lessened the costs of market share marketing campaigns. However, without loyalty programs in place, marketers risk spending money on customer acquisition yet do not realize the profitability associated with growing those relationships.
Wallet share, or share of wallet, represents another approach to modern marketing. Unlike market share, wallet share focuses on promoting customer loyalty by paying special attention to existing customers and taking full advantage of the opportunity that each individual customer represents. Understanding the customers’ buying trends and services needs means marketers can tailor the messages in a way that strengthens the relationship. Making sure a customer knows they can purchase additional products that enhance their current investments or receive certain services through the same organization means you’ll grow wallet share by creating a more profitable, longer term connection.
The relationship between market and wallet share is complementary by nature. Having more market share creates the opportunity to expand wallet share, which in turn, can lead to new prospects. Both “shares” are critical to the health of an organization and should be considered and balanced. Make sure to conduct your analysis carefully to measure ROI for wallet and market share.
Relying on the intelligence provided by data and analytics to construct tailored messages further demonstrates your organization’s investment in the customer relationship, whether from the onset or later in the discussion. Working with a reliable data service is the final ingredient in blending share strategies to connect with customers and boost profits.
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