Home Page Icon
Home Page
Table of Contents for
Contents
Close
Contents
by Alexander J. Buoye, Luke Williams, Lerzan Aksoy, Timothy L. Keiningham
The Wallet Allocation Rule
Title Page
Copyright
Dedication
Preface
Notes
Foreword
Chapter 1: It's “Oh My God!” Bad
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
Growth Is Hard to Find
Deconstructing Market Share
Different Metric, Same Outcome
Satisfaction ≠ Market Share
Satisfaction ≠ Share of Wallet
Always Wrong on Average
A Cautionary Tale
The Moral of the Story?
Notes
Chapter 2: Eureka! The Discovery of the Wallet Allocation Rule
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
Getting There
Determining Your Rank
The Wallet Allocation Rule and Share: The Evidence
The “Best” Metric?
Why Does the Wallet Allocation Rule Work?
Using the Wallet Allocation Rule
Wallet Allocation Rule Strategy
How to Improve Your Rank
The Rule in Practice
Conclusion
Notes
Chapter 3: The Wallet Allocation Rule in Action
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
Grinding a New Set of Lenses
Putting the Wallet Allocation Rule to Work
Conclusion
Notes
Chapter 4: Customers as Assets
Key Takeaway: Growth is easy for firms willing to give their products away—for as long as they remain in business! But the first duty of a business is to survive. Managers must never lose si
The Wallet Allocation Rule Is Not a Panacea
Revenue ≠ Profits
Short-Term Gain, Long-Term Pain
Money-Losing Delighters
Aligning Satisfaction, Share of Wallet, Revenue, and Profit
Conclusion
Notes
Chapter 5: New Metrics That Matter for Growth
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 i
Glass Houses and Stones
Must-Have Marketing Metrics
Customer Satisfaction
Key Drivers and Market Barriers
Demand Evidence
Notes
Chapter 6: Making It Happen
Key Takeaway: Rather than end this book with a cheerleader's call to “Go, Fight, Win!” we instead want to focus on this all too important fact: Without proper execution, good i
Rule 1: Get the Data Right
Rule 2: Set the Right Performance Standards
The Next Disruption
Notes
Afterward: What's Next?
Establish That You Need It
Get Help
Let's Talk
Connect with Us
Visit www.walletrule.com
Notes
Appendix A: Quick Start Guide
What Is the Wallet Allocation Rule?
Wallet Allocation Rule Strategy
Identifying Opportunities for Improving Share of Wallet
An Example in the Credit Union Industry
Conclusion
Notes
Appendix B: Frequently Asked Questions
When Is It Appropriate to Use the Wallet Allocation Rule?
Does the Wallet Allocation Rule Work with All Satisfaction Metrics?
Is There a Preferred Metric We Should Use to Determine a Brand's Rank?
How Do I Ensure That All Relevant Competitors Are Ranked?
What Metrics Should Be on My “Dashboard” Related to the Wallet Allocation Rule?
Why Does the Wallet Allocation Rule Work?
Will Relative Net Promoter Score Work?
Isn't Share of Wallet Just a Function of a Brand's Reach (i.e., Penetration)?
Visit www.walletrule.com
Notes
Acknowledgments
Principal Contributors
Notes
About the Authors
Timothy Keiningham, PhD
Lerzan Aksoy, PhD
Luke Williams
Alexander Buoye, PhD
Index
End User License Agreement
Search in book...
Toggle Font Controls
Playlists
Add To
Create new playlist
Name your new playlist
Playlist description (optional)
Cancel
Create playlist
Sign In
Email address
Password
Forgot Password?
Create account
Login
or
Continue with Facebook
Continue with Google
Sign Up
Full Name
Email address
Confirm Email Address
Password
Login
Create account
or
Continue with Facebook
Continue with Google
Prev
Previous Chapter
Cover
Next
Next Chapter
Praise for The Wallet Allocation Rule
Table of Contents
Title Page
Copyright
Dedication
Preface
Notes
Foreword
Chapter 1: It's “Oh My God!” Bad
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 loyalty—such 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
Deconstructing Market Share
Different Metric, Same Outcome
Satisfaction ≠ Market Share
Satisfaction ≠ Share of Wallet
Always Wrong on Average
A Cautionary Tale
The Moral of the Story?
Notes
Chapter 2: Eureka! The Discovery of the Wallet Allocation Rule
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
Determining Your Rank
The Wallet Allocation Rule and Share: The Evidence
The “Best” Metric?
Why Does the Wallet Allocation Rule Work?
Using the Wallet Allocation Rule
Wallet Allocation Rule Strategy
How to Improve Your Rank
The Rule in Practice
Conclusion
Notes
Chapter 3: The Wallet Allocation Rule in Action
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
Putting the Wallet Allocation Rule to Work
Conclusion
Notes
Chapter 4: Customers as Assets
Key Takeaway:
Growth is easy for firms willing to give their products away—for 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
Revenue ≠ Profits
Short-Term Gain, Long-Term Pain
Money-Losing Delighters
Aligning Satisfaction, Share of Wallet, Revenue, and Profit
Conclusion
Notes
Chapter 5: New Metrics That Matter for Growth
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
Must-Have Marketing Metrics
Customer Satisfaction
Key Drivers and Market Barriers
Demand Evidence
Notes
Chapter 6: Making It Happen
Key Takeaway:
Rather than end this book with a cheerleader's call to “Go, Fight, Win!” we instead want to focus on this all too important fact: Without proper execution, good ideas can and often do fail. The Wallet Allocation Rule is no exception. We end by identifying the most common failure points, and what you can do to avoid them.
Rule 1: Get the Data Right
Rule 2: Set the Right Performance Standards
The Next Disruption
Notes
Afterward: What's Next?
Establish That You Need It
Get Help
Let's Talk
Connect with Us
Visit www.walletrule.com
Notes
Appendix A: Quick Start Guide
What Is the Wallet Allocation Rule?
Wallet Allocation Rule Strategy
Identifying Opportunities for Improving Share of Wallet
An Example in the Credit Union Industry
Conclusion
Notes
Appendix B: Frequently Asked Questions
When Is It Appropriate to Use the Wallet Allocation Rule?
Does the Wallet Allocation Rule Work with All Satisfaction Metrics?
Is There a Preferred Metric We Should Use to Determine a Brand's Rank?
How Do I Ensure That All Relevant Competitors Are Ranked?
What Metrics Should Be on My “Dashboard” Related to the Wallet Allocation Rule?
Why Does the Wallet Allocation Rule Work?
Will Relative Net Promoter Score Work?
Isn't Share of Wallet Just a Function of a Brand's Reach (i.e., Penetration)?
Visit www.walletrule.com
Notes
Acknowledgments
Principal Contributors
Notes
About the Authors
Timothy Keiningham, PhD
Lerzan Aksoy, PhD
Luke Williams
Alexander Buoye, PhD
Index
End User License Agreement
Pages
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
27
28
29
30
31
32
33
35
34
36
37
38
40
39
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
129
130
131
132
133
134
135
136
137
139
140
141
142
143
144
145
146
147
148
149
151
152
153
154
155
156
157
211
212
213
214
215
216
217
218
Guide
Cover
Table of Contents
Preface
Begin Reading
List of Illustrations
Figure 1.1
Figure 1.2
Figure 1.3
Figure 1.4
Figure 1.5
Figure 1.6
Figure 1.7
Figure 1.8
Figure 1.9
Figure 1.10
Figure 1.11
Figure 2.1
Figure 2.2
Figure 2.3
Figure 2.4
Figure 2.5
Figure 2.6
Figure 2.7
Figure 2.8
Figure 2.9
Figure 2.10
Figure 2.11
Figure 3.1
Figure 3.2
Figure 3.3
Figure 3.4
Figure 3.5
Figure 3.6
Figure 3.7
Figure 3.8
Figure 3.9
Figure 3.10
Figure 3.11
Figure 3.12
Figure 3.13
Figure 3.14
Figure 3.15
Figure 3.16
Figure 3.17
Figure 3.18
Figure 4.1
Figure 4.2
Figure 4.3
Figure 4.4
Figure 5.1
Figure 5.2
Figure 5.3
Figure 5.4
Figure 5.5
Figure 5.6
Figure 5.7
Figure 5.8
Figure 5.9
Figure A.3
Figure A.4
Figure A.5
Figure A.6
Figure A.7
Add Highlight
No Comment
..................Content has been hidden....................
You can't read the all page of ebook, please click
here
login for view all page.
Day Mode
Cloud Mode
Night Mode
Reset