Question

Imagine a customer has a monthly income of $2,200, from which he spends $350 monthly on groceries. Further, imagine that $230 of the money spent on groceries is spent at the store called UBUYRITE, What is UBUYRITE’s individual share of wallet for that particular customer?

Answer 1

Answer: 65.71%

Explanation: Share of wallet is a percentage of expenditure a consumer makes on a kind of purchase that goes to a specific company. Unlike the literal wallet, which is the $2,200 the customer earns per month, this focuses on a product category, and how much of that goes to a particular company.

In this case the product category is groceries which a customer spends $350 on per month. The portion that goes to a particular company, which is the share of wallet for that specific product category, is $230 which goes to Ubuyrite. Ubuyrite's share can be calculated as follows:

Portion of the product category going to Ubuyrite = $230

Total portion spent on the product category = $350

∴
`(230)/(350)` × 100

= 65,71%