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Blog · Wallet share and penetration

Whitespace and share of wallet: the same gap from two directions, and when to use which

Why whitespace and share of wallet describe the same customer gap from two directions, whitespace by product line from the grid and share of wallet by total spend from the wallet, when each is the right measure, whitespace for the conversation about which line and share for the conversation about how much, how they reconcile, the case where they disagree and what it means, and the rule that a report shows both with the same norm behind each.

The short answerWhitespace and share of wallet are the same customer gap seen from two directions. Whitespace is by product line: the lines similar customers hold that this one does not, valued. Share of wallet is by total spend: what the customer spends with you over what it spends in the category. Whitespace says which lines to talk about; share of wallet says how much is at stake overall. They reconcile when the wallet is built from the same norm as the grid, and they disagree when a customer holds every expected line at a fraction of the expected depth, which is an upsell gap that whitespace cannot see and share of wallet can.

A sales team has a whitespace grid and a share of wallet table and treats them as two projects. They are one gap from two directions, and read together they say which line and how much. This guide sets out each, when to use which, the reconciliation, and the case where they disagree.

Two directions

Whitespace Share of wallet
Unit Account by product line Account
Question Which lines does this account not buy that similar accounts do? How much of this account's spend do we hold?
Norm Share of similar accounts holding each line; median spend per line Total spend of similar accounts per unit of size
Output Cells, valued; returning lines first A share, a gap in dollars, a ceiling
Conversation Which line How much

When to use which

Situation Use
Ranking the rep's week by dollars Share of wallet gap
Preparing the call Whitespace: the named line, returning first
Board reporting on the base Share of wallet, weighted by wallet
Product management: which lines have gaps everywhere Whitespace, by column
An account with every line and low spend Share of wallet, and the depth gap

The reconciliation

Share of wallet gap = whitespace value + depth gap on held lines

Where the depth gap is, for each line the account holds, the norm's median spend on that line less the account's spend, floored at zero. Both against the same norm.

The rows you need

  • Ledger: account, product line, revenue.
  • Customer master: account, segment, size.
  • Norms: per segment, per line: penetration and median spend; per segment, total spend per unit of size.

Account identifiers only.

A worked reconciliation

Account Whitespace value Depth gap on held lines Share of wallet gap Reading
4471 $82,000 $348,000 $430,000 Mostly depth: buys every line, thinly
1187 $75,000 $690,000 $765,000 Both
2207 $0 $70,000 $70,000 Depth only: every line, slightly under
9034 $0 $30,000 $30,000 Nearly full

Account 4471 has two empty lines worth eighty-two thousand and three hundred and forty-eight thousand of depth on the lines it holds. Whitespace alone would have sent the rep to talk about lines B and C; share of wallet says the larger conversation is about buying more of line A.

The case where they disagree

Whitespace at zero, share of wallet at 25 percent: the account holds everything and buys a third of the norm on each. Depth, not breadth. The upsell guide covers it; whitespace cannot see it, and a report that shows only whitespace calls that account full.

Where it goes wrong

Two projects. Two norms; nothing reconciles; two lists that disagree.

Whitespace as the ranking. Small accounts with many empty cells at the top.

Share of wallet as the call prep. A percentage and no line to talk about.

Depth gap ignored. The account that holds everything thinly, called full.

Every month, both, one norm

Mapped once, the ledger, the customer master and one set of norms produce the whitespace grid, the share of wallet table and the reconciliation between them every month. Covirage builds this from the exports as they are. The whitespace analysis guide covers the grid, and the cross-sell and upsell guide covers the depth gap.

Questions people ask

Which one should a rep use?

Whitespace, for the call, because it names the line. Share of wallet, for the priority, because it ranks the customers by dollars at stake. The rep's list is ranked by share of wallet gap and each row opens to the whitespace grid for that customer.

Can they disagree?

Yes, in one direction. A customer can hold every expected line and still buy a third of what similar customers buy on each: whitespace is empty, share of wallet is low. That is depth, not breadth, and it is an upsell conversation. The reverse, empty cells with a full wallet, cannot happen if the two use the same norm.

What is the reconciliation?

Whitespace value plus depth gap on held lines equals the share of wallet gap, when both are computed against the same norm. A report that shows the two with different norms will not reconcile and should not show both.