Abstract:

Giving the circumstances of the economic-financial depression we have been experiencing in the latest years, the optimum way for a bank to increase revenues is to multiply the spending of existing customers, rather than trying to attract new ones. Why? Because it is an easier, less expensive and a faster approach, which also has benefits on long term – increasing market share through recommendations.

Manifesting an interest in the true potential of each existing customer is the first step in understanding the importance of the share of wallet.

The general aim of this study is to point out the importance of share of wallet, from bank’s point of view, in determine which customers to focus on, because of their potential to spend more.

The paper has the form of an overview of the representative literature and it is a work in progress planned to be continued with some empirical research regarding the probability to predict customer’s behavior, through clients segmentation, in order to transform the bank’s mass action tactics into individual customer level ones, characterized by customized offers designed to capture as much as possible from the share-of-wallet.