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Blog · Wallet share and penetration

Whitespace on ten accounts and five lines: the whole arithmetic on one page

The complete whitespace calculation on a grid of ten accounts by five product lines, small enough to check by hand: the filled cells from the ledger, the norm penetration and median spend per line from the accounts that hold each, which empty cells are expected, which are returning lines, which cannot be bought, the value per cell, the value per account, the roll-up and the identity, so a reader can reproduce every figure and then run it on their own export.

The short answerTen accounts in one segment, five product lines, cells filled from the ledger. For each line, the share of accounts holding it is the norm penetration and the median spend among holders is the norm spend. Lines held by at least half the accounts are expected; their empty cells count. Two cells are returning lines, bought last year and not this; one is cannot-buy from the account master. Each expected empty is valued at the line's median spend; per account the values sum; the filled cells sum to the ledger. The account with the most whitespace has $87,000 across two lines, one of them returning, and that cell is the first call.

A whitespace grid is a table of accounts against lines, and on ten by five every cell can be read. This page works the whole method: the filled cells, the norm per line, which empties count, the three kinds of empty, the value, the roll-up and the identity.

The grid, from the ledger

Trailing twelve months' revenue. Blank is empty.

Account A B C D E
1 $120k $40k $18k
2 $310k
3 $22k $9k $14k $6k
4 $90k $30k $20k
5 $60k $25k $10k
6 $200k $55k $30k $15k $8k
7 $45k $12k
8 $80k $25k $18k
9 $150k $22k $12k
10 $35k $10k
Filled total $1,112k $181k $129k $55k $14k

Ledger for these accounts: $1,491,000. Filled cells sum: 1,112 + 181 + 129 + 55 + 14 = $1,491,000. Identity holds.

The norm per line

Line Accounts holding Penetration Expected (≥ 50%)? Median spend among holders
A 10 100% Yes $85,000
B 7 70% Yes $25,000
C 6 60% Yes $21,000
D 4 40% No $13,500
E 2 20% No $7,000

The three kinds of empty

From last year's ledger and the account master:

Cell Kind
Account 2, line B Returning: bought $52,000 last year
Account 9, line B Returning: bought $20,000 last year
Account 5, line B Cannot buy: account type excludes B
All other empties in B and C Never bought
All empties in D and E Not expected; ignored

The value per cell and per account

Expected empties valued at the line's median spend.

Account Empty expected cells Value Returning
2 B (returning), C 25,000 + 21,000 = $46,000 1
9 B (returning) $25,000 1
1 C $21,000 0
7 C $21,000 0
10 C $21,000 0
5 B is cannot-buy; none $0 0
3, 4, 6, 8 none $0 0
Total $134,000

Account 2: the largest account and the most whitespace, with a returning line. Its B cell is the first call on the grid.

The roll-up

Whitespace value, segment = $134,000 Σ filled cells = $1,491,000 = ledger

Where it goes wrong, even at ten by five

Every empty counted. Twenty-three empties valued at their line medians: $360,000 of whitespace, most of it in lines few accounts want.

Cannot-buy unmarked. Account 5 pitched line B.

Returning not shaded. Account 2's B treated like account 1's C.

Grid not reconciled. A ledger line with no product code missing from the filled cells; the identity would catch it.

From ten by five to ten thousand by thirty

The same grid, the norm per segment cell with its count, the three kinds from history and the master. Covirage runs it on the ledger and the product list every month. The whitespace analysis guide covers the method, and the whitespace grid reading guide covers reading it at scale.

Questions people ask

Why is the norm drawn from these same ten?

At ten it has to be, and it is the same at ten thousand: the norm for a segment comes from the accounts in it that hold the line. On a real base the cell would have thirty or more members and the norm would be greyed if it did not. Here the arithmetic is the point.

What is the expected floor?

Half the accounts, stated. A line held by fewer is not expected of the ones that lack it, and its empties are ignored. Line E, held by two of ten, produces no whitespace on this grid.

Why is the returning cell first?

The account bought the line before and stopped. The reason may be gone. It is the easiest recovery on the grid, and it is shaded so the rep sees it first.