“Mind share relates generally to the development of consumer awareness or popularity, and is one of the main objectives of advertising.”
“Market share is the percentage of a market (defined in terms of either units or revenue) accounted for by a specific entity.”
“Wallet share is a survey method used in performance management that helps managers understand the amount of business a company gets from specific customers.”
The answer to when do you need to take which approach is via the funnel framework of customer acquisition.
Most entrepreneurs start to acquire customers via the network they know – either B2B or B2C. Friends and family are the logical first early adopters if it is a consumer product and if they are not the target audience, then sharing via social networks is a logical choice.
Getting “mindshare” is important at the initial stages of customer acquisition. Potential customers need to be aware of your product and know that you exist.
There are 2 parts to this acquisition – the trusted customer acquisition and the unknown.
The trusted is the customers / targets / prospects who know you – they have prior experience or knowledge about you and are willing to make a bet based on their experiences with you.
The unknown is the new fresh leads or prospects who you have to build a relationship with. That’s usually harder for most entrepreneurs. Which is why you want a product that customers really like, which means they will tell other customers about it, reducing the barrier to “building trust”.
When you get “enough” of a pipeline, you tend to focus on marketshare – getting these customers to convert.
Marketshare is a focus if you have enough leads. If you are getting enough leads or “trials” or “free tier” users to convert them. Obviously you cant convert 100% of your free users to paid, but if you get enough data from them to make it worth the while, then the free tier is worth it. In many cases the free tier is also a marketing technique, when you cant afford marketing.
Finally wallet share is when you already have customers and want to get more revenue from existing customers.
So, the easiest way to determine where you need to spend your time and energy is to look at your funnel and determine where the gaps are.
The other way is to look at relative metrics. If the ratio of what’s in your marketshare vs. value of what’s in your mindshare is less than 10%, you need to spend more time on converting existing customers.
If the ratio of wallet share pipeline $ to marketshare pipeline $ is less than 30%, then you need to spend more time converting existing customers to buy more from you.