The Wallet Allocation Rule: Winning the Battle for Share

by Timothy L. Keiningham, Lerzan Aksoy, Luke Williams

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.

Genres: Business, Nonfiction

240 pages, Hardcover

First published February 4, 2015

Reviews

[Heidi · Rating 3 out of 5]

Thinking of loyalty in terms of wallet allocation is a helpful construct for business with lots of transactions. There are so many companies fixated on measuring or moving their NPS, and it's helpful to consider this as an alternative method of evaluating the health of your business.

When I was introducing the concept to my team, I brought up the restaurant industry. There might be dozens of restaurants I would recommend to a friend (think NPS), but then there is the grungy Mexican joint around the corner where my husband and I spend 3/4 of our budget to eat out, because they've mastered some of our favorite foods. So while I would readily recommend other eateries, the important metric in this case is where my money is actually spent (share of wallet).

[elif kalafat · Rating 5 out of 5]

this book was really eye-opening for me. the main idea is: for marketers, don’t just keep measuring nps, and market share alone is not enough either. instead, focus on your relative satisfaction ranking and what actually brings you money.

something can make your user very happy, but not bring revenue (like UI). also, a customer might love you and give you 9/10, but they also give another brand 9/10 or even 10/10. that means their elasticity is high, and they are risky for you. but if someone gives you 8/10 and you are their number one choice, this customer is actually more valuable. the book says: don’t miss her.

the book gave me so much joy. i recommended it to everyone interested in these topics. it was really fun to read. i hope i can also integrate it into my own work.

ps. i thought a book that won so many awards would have more reviews on goodreads. i was a bit surprised i'm 3rd lol

[Sophiepedia · Rating 1 out of 5]

Muy aburrido en audiolibro, mejor ver el video de youtube.