Share of wallet — or the dollar amount your average customer spends on a particular brand’s products or offerings (rather than on competitor brands within the same space) — has always been at the forefront of savvy companies’ minds. However, an increasingly competitive ecosystem means all companies should be looking for more of an edge. If your organization hasn’t considered SoW seriously, it’s time to start.
SoW is certainly important for the financial services industry. According to Mercator Advisory Group, customers have just over five accounts across their varying financial institutions. Besides this, fintech solutions are quickly taking a bite out of the traditional banking industry. Today around 25% of younger Millennials use Venmo, and in 2018, Square’s Cash App boasted 15 million monthly active accounts — up from just 7 million in 2017.
Here at Appirio, we partner with companies that are working toward a more holistic approach to SoW. We recommend that our partners think about not only measuring each customer’s SoW, but also understanding the importance of the metric itself.
Designing key performance indicators that take the nuances of your business into account is critical here, and mapping out the customer journey is yet another crucial area. Perhaps the most important element, though, is designing your outreach solutions with SoW in mind. This will help boost customers’ engagement, meaning they’ll likely devote more money to you naturally.
What to Consider to Truly Engage Customers
If you haven’t seriously considered your company’s approach to SoW, it’s wise to start by asking these questions:
- How do you primarily engage your customers?
- How have your customer interactions shifted over the last 5 to 10 years?
- What are your primary drivers for connecting with customers?
- How do you quantify engagement?
- Do customers’ extended family members and other relatives matter to your business?
Determining the answers to these questions helps immensely once it comes time to map out your approach to SoW and the design of your customer engagement initiatives.
Identifying specific KPIs that reflect drivers for your business units and segments should also help establish a direction. As technology shifts brand interactions, customers are forced to adapt. Creating continuity throughout each customer’s life cycle, then, will also create a sense of loyalty — and more SoW in turn.
Where Artificial Intelligence Comes In
You likely know that it’s easier to sell to an existing customer than win a new one. (This doesn’t even mention the high acquisition costs that come with securing new customers!) Luckily, emerging technology is changing the game.
The same can be said when you apply the technology to SoW initiatives. Artificial intelligence is now able to determine the next best steps when it comes to pursuing leads and upselling current customers, and the insights it can provide are invaluable. These include predictions on lead conversions that can help upsell more cost-effectively or scored recommendations that can ease the selling process for members of your sales team. All of this optimization could certainly create a more seamless customer experience, meaning more loyalty and SoW later.
AI-powered analytics can also help you understand customer churn and determine when certain accounts are more likely to leave. With a better understanding of those inclinations, you’ll be able to take proactive steps to retain customers.
Although there are a few key things to keep in mind for SoW, each business approaches it differently. If you’re wondering where to start, Appirio can help guide you. Reach out today to learn more.
About the AuthorMore Content by Patrick O'Brien