Share of wallet and whitespace
Covirage compares every customer with similar customers in your own ledger. Where most of its peers buy a product line and it does not, or buys far less, that is a gap with a value on it. The result is a list of customer and product pairs, ranked, that a salesperson can take into a conversation.
Revenue per account says how big a customer is, not how much of its spend you hold. Measured against every customer at once, each account has gaps that are not real: an electrician does not buy aggregates. Measured against its own kind, the gaps are the lines it buys from somebody else.
For each group of similar customers, which product lines most of them buy and how much of their spend goes there.
Lines not bought and lines underbought, each valued at the median for similar customers, scaled to the account.
A line is only a gap if most similar customers buy it, so the list stays short enough to work.
Three steps, in this order.
Invoices by customer and product line, plus the segment field you already keep. Client IDs only.
Which customers are similar, and the share of them that makes a line expected. Customers with no segment are shown and counted, not guessed.
Customer and line pairs ranked by value, per owner, with the category totals checked against the ledger.
Short answers. The Help centre has the long ones.
From your own similar customers, as a norm. Where a customer has stated its spend, or it is public, that figure is used and labelled with its source and date.
A cross-sell report lists what a customer does not buy. This lists only what customers of its kind usually do buy, puts a value on each gap, and includes lines bought in part.
A first grouping can be inferred from what each customer buys, labelled as inferred. The share of accounts with a confirmed segment is reported so it can be improved.
Written for this job: the measures, the data you already hold, and the arithmetic.
The share of wallet formula, the three ways to estimate the denominator when the customer will not tell you, a worked example from a real-shaped ledger, the roll-up from customer to segment to company, and the four mistakes that make the number wrong: mixing periods, counting one-off purchases, using a benchmark as the wallet, and reporting a share with no gap value beside it.
16 Sept 20263 min readEvery penetration, fit, share or whitespace figure needs a denominator: what a customer like this one usually buys. This guide sets out how to build that norm from your own customers by banding them on type and size, the majority rule, the minimum band size, and how to record overrides so the gap list stays credible.
16 Sept 20263 min readA gap list is only a plan when each gap has a number beside it. This guide compares the three ways to value a missing product, account or lane, at list price, at the customer's own rate, and against an external wallet, with the cases each fits, the bias each carries, and the rule of stating the basis on every list.
16 Sept 20263 min readThe difference between penetration and coverage in B2B sales measurement: coverage is accounts touched over accounts assigned, penetration is accounts buying over accounts in the market or the estate. When each is the right measure, how they roll up, why a team can have high coverage and low penetration or the reverse, and the two lists each one produces.
16 Sept 20263 min readHow to compute products per customer from a sales or holdings ledger, why the raw average misleads, how to set the norm per segment from the customers who buy most, the gap per customer that comes out, the roll-up per rep and region, and the three mistakes: counting SKUs as products, mixing segments, and using a competitor's figure as the target.
16 Sept 20262 min readShare of wallet is one formula and twelve different denominators. This hub sets out, for twelve industries, what the customer's wallet is, where the number comes from, what the numerator is in that industry's ledger, and the natural ceiling a share can reach, with a link to the full guide for each. Written for a commercial leader who has heard the term and wants to know what it means for their desk.
16 Sept 20263 min read