Question

1. follow the wallet allocation rule to establish the share of wallet of each competitor your customers use

2. determine how many of your customers use each competitor
3. calculate the revenue that goes from your customers to each competitor
4. prioritize your opportunities to improve your share of wallet.

Answer 1

The wallet allocation rule is a method used to determine the share of wallet of each competitor your customers use. It involves calculating market shares, determining customer usage, and calculating revenue going to competitors. Prioritizing opportunities to improve share of wallet is the final step.

Step-by-step explanation:

The wallet allocation rule is a method used to determine the share of wallet of each competitor that your customers use.

1. First, calculate the market shares of each competitor by finding the percentage of total sales they have in the market. This can be done by adding the market shares of the four largest firms or by using the Herfindahl-Hirschman Index.
2. Next, determine how many of your customers use each competitor by analyzing customer data and surveying them.
3. After that, calculate the revenue that goes from your customers to each competitor by multiplying the market share by the total revenue generated by your customers.
4. Finally, prioritize your opportunities to improve your share of wallet by focusing on competitors with a higher market share and revenue from your customers.