Cling!! “Your wallet carries Rs1500. Redeem this amount to shop these stunning deals”.
In the maze of online shopping, we generally come across these texts from brands we shop from. It is a subtle trick to entice customers to shop more and at the same time increase the share of wallet for each customer in the market.
Customer experience transformation has become a burgeoning trend for most businesses. Brands are trying out innovative ways to hook on to customers and capture a chunk of the market share. Wallet share is one such marketing tactic that has become a blue-eyed boy for marketers.
Wallet share gives marketers stellar insight into the amount of business they can expect from a customer. For the average joe, wallet share means the share of wallet or the amount of expenses of the customer for a certain product that goes towards the company.
Wallet share is mostly prevalent in the banking and finance industries. But of late, it has found a new ground in marketing. Companies employ various strategies to increase wallet share of a customer which includes increasing the wallet amount of the customer, compelling him/her to burn the amount by visiting their website. This helps the company to retain the customer and at the same time increase brand loyalty.
Companies today prefer to coax their existing customers and hold on to them since loyal customers bring more business for the company through referrals and increased spending. Because why drain money on new customers when your existing customers are doing a great job in bringing business for your company.
Studies show that by retaining existing customers through wallet share, businesses can save nearly 6-7 times less money than they will have to splurge on new ones. It can eventually result in a 25-100% increase in profits. That sounds exponential!!
However, baiting customers in this 21st century world with your products is not a walk in the park. Customers today are intelligent and if you don’t dish out something out-of-the-box, then won’t bother visiting your website again. Just customer loyalty will not fetch you good business. You have to come out with interesting strategies to improve customer retention and increase the amount of purchase.
So, without beating around the bush, here’s a lowdown of some strategies for increasing customer wallet share.
- Know your customers inside out: Getting into the heart of your customer spending behaviour is the first thing you should hit on. With the help of layer-upon-layer of analytics, you have to figure out the products customers don’t want to buy. This will give you an idea of which products you need to focus on. Improve those products on the lines of customer feedback and you will see a stream of loyal customers flowing into your website. Though this analysis may burn some time, at the end of the day you will have the last laugh.
- Track customer usage to mint more customers: One of the most important strategies that business should take on is to increase customer satisfaction. Because how will you improve your products and be profitable if you don’t know whether your customers are gung-ho about your products or not. Take customer surveys and distribute them through mail. In the surveys, ask customers how you can improve your products. This will give you food for proper analysis of your products. You can fish out the weaknesses and retune them accordingly.
- Customer engagement: Maintaining a steady to and fro communication link with customers is beneficial to increasing the wallet share. Engage with customers through newsletters, offer carnivals and quizzes and keep the relation hot and running. Get your customers interested through social media platforms like Facebook and Twitter. Stir up their curiosity so that they get more inclined to buy from you.
- Be in sync with the market trends: Staying updated with the latest trends and being the cynosure of your customers means a lot for your business. When customers find the latest trends in your products, it instills faith and confidence in them, and they look forward to your company’s range of products. Being in sync with trends improves the brand position of the company and keeps your brand alive in the minds of your consumers.
Wallet share is the newest chip off the block that companies are keen on adopting to augment their businesses. Wallet share, when understood properly, can give you detailed knowledge on various areas of your business including pricing, sales strategy, product placement and a lot more and at the same time allow you to have a better grip on your customers.