Customer Loyalty Isn't Enough--Grow Your Share of
Wallet
The Wallet Allocation Rule is a revolutionary, definitive
guide for winning the battle for share of customers' hearts, minds,
and wallets. Backed by rock-solid science published in the
Harvard Business Review and MIT Sloan Management
Review, this landmark book introduces a new and rigorously
tested approach--the Wallet Allocation Rule--that is
proven to link to the most important measure of customer loyalty:
share of wallet.
Companies currently spend billions of dollars each year
measuring and managing metrics like customer satisfaction and Net
Promoter Score (NPS) to improve customer loyalty. These metrics,
however, have almost no correlation to share of wallet. As a
result, the returns on investments designed to improve the customer
experience are frequently near zero, even negative.
With The Wallet Allocation Rule, managers finally have
the missing link to business growth within their grasp--the
ability to link their existing metrics to the share of spending
that customers allocate to their brands.
* Learn why improving satisfaction (or NPS) does not improve
share.
* Apply the Wallet Allocation Rule to discover what really drives
customer spending.
* Uncover new metrics that really matter to achieve growth.
By applying the Wallet Allocation Rule, managers get real
insight into the money they currently get from their customers, the
money available to be earned by them, and what it takes to get it.
The Wallet Allocation Rule provides managers with a
blueprint for sustainable long-term growth.
Autorentext
TIMOTHY KEININGHAM is Global Chief Strategy Officer at Ipsos Loyalty, a professional services firm dedicated exclusively to customer experience, satisfaction, and loyalty.
LERZAN AKSOY is Professor of Marketing at Fordham University Schools of Business.
LUKE WILLIAMS is Vice President at Ipsos Loyalty, where he leads the day-to-day activity of large-scale research engagements.
ALEXANDER BUOYE is Assistant Professor of Marketing at Fordham University Schools of Business.
Zusammenfassung
Customer Loyalty Isn't EnoughGrow Your Share of Wallet
The Wallet Allocation Rule is a revolutionary, definitive guide for winning the battle for share of customers' hearts, minds, and wallets. Backed by rock-solid science published in the Harvard Business Review and MIT Sloan Management Review, this landmark book introduces a new and rigorously tested approachthe Wallet Allocation Rulethat is proven to link to the most important measure of customer loyalty: share of wallet.
Companies currently spend billions of dollars each year measuring and managing metrics like customer satisfaction and Net Promoter Score (NPS) to improve customer loyalty. These metrics, however, have almost no correlation to share of wallet. As a result, the returns on investments designed to improve the customer experience are frequently near zero, even negative.
With The Wallet Allocation Rule, managers finally have the missing link to business growth within their graspthe ability to link their existing metrics to the share of spending that customers allocate to their brands.
- Learn why improving satisfaction (or NPS) does not improve share.
- Apply the Wallet Allocation Rule to discover what really drives customer spending.
- Uncover new metrics that really matter to achieve growth.
By applying the Wallet Allocation Rule, managers get real insight into the money they currently get from their customers, the money available to be earned by them, and what it takes to get it. The Wallet Allocation Rule provides managers with a blueprint for sustainable long-term growth.
Inhalt
Preface xvii
Foreword xix
Chapter 1
It's Oh My God! Bad 1
Key Takeaway: Customer satisfaction is the most widely used metric for measuring and managing customer loyalty. But our research finds that satisfaction does not link to what counts most: market share and share of wallet. Satisfaction is a strong negative predictor of market share. And satisfaction typically explains a miniscule 1 percent of customers' share of spending in an industry category. This problem isn't just limited to customer satisfaction. All commonly used measures of customer loyaltysuch as the Net Promoter Score (NPS) or recommend intention perform equally badly. This contradicts the message of virtually all programs discussed in the business press regarding the relationship of satisfaction and NPS to business performance. The grim reality is that most of these efforts are doomed to fail. Moreover, they often run counter to a firm's competitive positioning and strategy.
Growth Is Hard to Find 3
Deconstructing Market Share 4
Different Metric, Same Outcome 8
Satisfaction Market Share 11
Satisfaction Share of Wallet 15
Always Wrong on Average 18
A Cautionary Tale 22
The Moral of the Story? 25
Chapter 2
Eureka! The Discovery of the Wallet Allocation Rule 27
Key Takeaway: Satisfied customers who recommend your brand are important. But all too often customers like your competitors just as much as they like your brand. The end result is that you are losing sales. To understand what drives share of wallet and ultimately market share, managers need to shift their focus from the drivers of satisfaction or NPS to the drivers of rank. Our research conclusively proves that the rank that customers assign to a brand relative to other brands they use predicts share of wallet using a simple, previously unknown formula, which we've named the Wallet Allocation Rule.
Getting There 29
Determining Your Rank 32
The Wallet Allocation Rule and Share: The Evidence 33
The Best Metric? 38
Why Does the Wallet Allocation Rule Work? 40
Using the Wallet Allocation Rule 41
Wallet Allocation Rule Strategy 43
How to Improve Your Rank 46
The Rule in Practice 47
Conclusion 49
Chapter 3
The Wallet Allocation Rule in Action 51
Key Takeaway: The drivers of share of wallet are almost always very different from the drivers of satisfaction or NPS. Wallet Allocation Rule analysis gets to the heart of what drives wallet share by identifying what drives customers' preference for your brand vis-à-vis competition instead of simply determining what makes customers happy.
Grinding a New Set of Lenses 52
Putting the Wallet Allocation Rule to Work 53
Conclusion 88
Chapter 4
Customers as Assets 89
Key Takeaway: Growth is easy for firms willing to give their products awayfor as long as they remain in business! But the first duty of a business is to survive. Managers must never lose sight of the fact that the end goal is profits, not just revenues.
The Wallet Allocation Rule Is Not a Panacea 91
Revenue Profits 98
Short-Term Gain, Long-Term Pain 99
Money-Losing Delighters 102
Aligning Satisfaction, Share of Wallet, Revenue, and Profit 104
Conclusion 106
Chapter 5
New Metrics That Matter for Growth 109
Key Takeaway: The Wallet Allocation Rule makes it possible for managers to easily link customer satisfaction to share of wallet. But because the rule is based upon a company's relative rank, not its absolute satisfaction level, firms need to add new metrics to their list of Key Performance Indicators (KPIs).
Glass Houses and Stones 110
Must-Have Marketing Metrics 112
Customer Satisfaction 115
Key Drivers and Market Barriers 121
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