are in their customers' shopping budgets. The historically popular metrics of satisfaction and purchase intent have been shown to have little or no predictive power in gauging actual purchases/repurchases. These metrics also do not offer managers information on what proportion of money consumers are willing to spend on their brand and whether their competitors are being chosen over them. After all, a pat on the wallet is a better proof of the pudding than a pat on the back. The Wallet Allocation Rule presents revolutionary insights that redefine the measurement of customer loyalty. With the help of this book, managers can not only gain a new perspective on the wallet share their brands command but also learn tools they can implement to maximize this share and cement their spot in their customer's shopping lists.
The Wallet Allocation Rule cogently debunks commonly held beliefs about the merits of conventional CSAT metrics and offers a simple – yet powerful – alternative for capturing and capitalizing on how customers actually allocate their spending among competing brands. Succinctly written and filled with easy-to-grasp illustrations, this thought-provoking book is a must-read for anyone interested in understanding the determinants of market share and revenue growth.
This book challenges the strongly held belief that customer satisfaction and its various derivatives, such as Net Promoter Score, are leading indicators of firm performance. Using rigorous research, the authors show that there is a weak correlation between satisfaction (and its variants) and consumers' purchase behavior. What matters is satisfaction relative to competition, not absolute satisfaction scores that almost all companies rely on. The authors translate this idea into a simple but powerful Wallet Allocation Rule. This book will change the way you think about customer satisfaction.
Keiningham and colleagues lay bare the “managerially correct” fallacy that by merely improving customer satisfaction and Net Promoter Score levels, firms will automatically see market share growth and higher customer spending. This well-researched book blasts these myths. More important, it shows managers precisely what to do (and how to do it!) to improve their firm's share. Grounded in strong research, The Wallet Allocation Rule is destined to have a lasting impact on both the science and practice of management.
The Wallet Allocation Rule is a thought-provoking book that will change the way leading enterprises will measure and manage customer satisfaction. And I love that this book is based on solid academic research that will pass the test of time.
The Wallet Allocation Rule focuses on a very important strategic issue for all business executives – how to win the battle for share of wallet. Backed by numerous examples and solid research, this book provides a new lens for viewing marketing decisions. The authors convincingly show that a focus on satisfaction is a recipe for financial disaster. Using the Wallet Allocation Rule, managers can finally make the critical link to share of wallet.
If you cannot measure it, you cannot manage it. In this book Keiningham, Aksoy, and Williams let managers become real managers by employing KPIs [key performance indicators] that measure what really matters: investments that drive share of wallet. I wish I wrote this book. I am delighted I read it!
This book is essential reading for anyone who wants to know how to improve customers' buying behavior. The Wallet Allocation Rule is an insightful strategy for those business executives who have the task of guiding their companies toward a new understanding of their customers' spending patterns. I am sure this book will be on every executive's desk.
Customer satisfaction is hugely important, but its relationship to share of wallet depends in large part on the competition. Superstar consultant Tim Keiningham and his colleagues at Ipsos Loyalty have teamed with academic Lerzan Aksoy to help unlock exactly how it is that satisfaction relates to share of wallet. Based in large part on actual corporate applications, The Wallet Allocation Rule is a readable book that should be valuable to all managers who want satisfying their customers to pay off.
This is a fantastic book that will help organizations better manage, monitor, and understand their customers from the perspective of better managing their profits. It advances the conversation from customer satisfaction and Net Promoter Score to share of wallet thereby paving the way to linking behavioral metrics to financial metrics. The intellectual advances in the book will be relevant for both academics and practitioners, not just today but for decades to come.
The Wallet Allocation Rule
Winning the Battle for Share
Timothy Keiningham • Lerzan Aksoy • Luke Williams with Alexander Buoye
Cover image: © iStock.com/JoKMedia
Cover design: Michael J. Freeland
Copyright © 2015 by Timothy Keiningham, Lerzan Aksoy, Luke Williams, and Alexander Buoye.
All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
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