{"product_id":"the-wallet-allocation-rule-9781119037316","title":"The Wallet Allocation Rule","description":"\u003cb\u003eBook Synopsis\u003c\/b\u003e\u003cbr\u003e\u003cb\u003eCustomer Loyalty Isn''t EnoughGrow Your Share of Wallet\u003c\/b\u003e  \u003cp\u003e\u003ci\u003eThe Wallet Allocation Rule\u003c\/i\u003e 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 \u003ci\u003eHarvard Business Review\u003c\/i\u003e and \u003ci\u003eMIT Sloan Management Review\u003c\/i\u003e, 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.\u003c\/p\u003e \u003cp\u003eCompanies 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.\u003c\/p\u003e \u003cp\u003eWith \u003ci\u003eThe Wallet Allocation Rule\u003c\/i\u003e, managers finally have the missing link to business growth within\u003cbr\u003e\u003cbr\u003e\u003cb\u003eTable of Contents\u003c\/b\u003e\u003cbr\u003e\u003c\/p\u003e\u003cp\u003ePreface xvii\u003c\/p\u003e \u003cp\u003eForeword xix\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eIt’s “Oh My God!” Bad 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eKey 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.\u003c\/p\u003e \u003cp\u003eGrowth Is Hard to Find 3\u003c\/p\u003e \u003cp\u003eDeconstructing Market Share 4\u003c\/p\u003e \u003cp\u003eDifferent Metric, Same Outcome 8\u003c\/p\u003e \u003cp\u003eSatisfaction ≠ Market Share 11\u003c\/p\u003e \u003cp\u003eSatisfaction ≠ Share of Wallet 15\u003c\/p\u003e \u003cp\u003eAlways Wrong on Average 18\u003c\/p\u003e \u003cp\u003eA Cautionary Tale 22\u003c\/p\u003e \u003cp\u003eThe Moral of the Story? 25\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eEureka! The Discovery of the Wallet Allocation Rule 27\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eKey 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.\u003c\/p\u003e \u003cp\u003eGetting There 29\u003c\/p\u003e \u003cp\u003eDetermining Your Rank 32\u003c\/p\u003e \u003cp\u003eThe Wallet Allocation Rule and Share: The Evidence 33\u003c\/p\u003e \u003cp\u003eThe “Best” Metric? 38\u003c\/p\u003e \u003cp\u003eWhy Does the Wallet Allocation Rule Work? 40\u003c\/p\u003e \u003cp\u003eUsing the Wallet Allocation Rule 41\u003c\/p\u003e \u003cp\u003eWallet Allocation Rule Strategy 43\u003c\/p\u003e \u003cp\u003eHow to Improve Your Rank 46\u003c\/p\u003e \u003cp\u003eThe Rule in Practice 47\u003c\/p\u003e \u003cp\u003eConclusion 49\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eThe Wallet Allocation Rule in Action 51\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eKey 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.\u003c\/p\u003e \u003cp\u003eGrinding a New Set of Lenses 52\u003c\/p\u003e \u003cp\u003ePutting the Wallet Allocation Rule to Work 53\u003c\/p\u003e \u003cp\u003eConclusion 88\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCustomers as Assets 89\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eKey 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.\u003c\/p\u003e \u003cp\u003eThe Wallet Allocation Rule Is Not a Panacea 91\u003c\/p\u003e \u003cp\u003eRevenue ≠ Profits 98\u003c\/p\u003e \u003cp\u003eShort-Term Gain, Long-Term Pain 99\u003c\/p\u003e \u003cp\u003eMoney-Losing Delighters 102\u003c\/p\u003e \u003cp\u003eAligning Satisfaction, Share of Wallet, Revenue, and Profit 104\u003c\/p\u003e \u003cp\u003eConclusion 106\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eNew Metrics That Matter for Growth 109\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eKey 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).\u003c\/p\u003e \u003cp\u003eGlass Houses and Stones 110\u003c\/p\u003e \u003cp\u003eMust-Have Marketing Metrics 112\u003c\/p\u003e \u003cp\u003eCustomer Satisfaction 115\u003c\/p\u003e \u003cp\u003eKey Drivers and Market Barriers 121\u003c\/p\u003e \u003cp\u003eDemand Evidence 127\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eMaking It Happen 129\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eKey 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.\u003c\/p\u003e \u003cp\u003eRule 1: Get the Data Right 131\u003c\/p\u003e \u003cp\u003eRule 2: Set the Right Performance Standards 135\u003c\/p\u003e \u003cp\u003eThe Next Disruption 136\u003c\/p\u003e \u003cp\u003eAfterword\u003c\/p\u003e \u003cp\u003eWhat’s Next? 139\u003c\/p\u003e \u003cp\u003eEstablish That You Need It 139\u003c\/p\u003e \u003cp\u003eGet Help 139\u003c\/p\u003e \u003cp\u003eLet’s Talk 140\u003c\/p\u003e \u003cp\u003eConnect with Us 140\u003c\/p\u003e \u003cp\u003eVisit www.walletrule.com 140\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendix A\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eQuick Start Guide 141\u003c\/p\u003e \u003cp\u003eWhat Is the Wallet Allocation Rule? 141\u003c\/p\u003e \u003cp\u003eWallet Allocation Rule Strategy 143\u003c\/p\u003e \u003cp\u003eIdentifying Opportunities for Improving Share of Wallet 146\u003c\/p\u003e \u003cp\u003eAn Example in the Credit Union Industry 147\u003c\/p\u003e \u003cp\u003eConclusion 149\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendix B\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFrequently Asked Questions 151\u003c\/p\u003e \u003cp\u003eWhen Is It Appropriate to Use the Wallet Allocation Rule? 151\u003c\/p\u003e \u003cp\u003eDoes the Wallet Allocation Rule Work with All Satisfaction Metrics? 152\u003c\/p\u003e \u003cp\u003eIs There a Preferred Metric We Should Use to Determine a Brand’s Rank? 153\u003c\/p\u003e \u003cp\u003eHow Do I Ensure That All Relevant Competitors Are Ranked? 154\u003c\/p\u003e \u003cp\u003eWhat Metrics Should Be on My “Dashboard” Related to the Wallet Allocation Rule? 154\u003c\/p\u003e \u003cp\u003eWhy Does the Wallet Allocation Rule Work? 155\u003c\/p\u003e \u003cp\u003eWill Relative Net Promoter Score Work? 155\u003c\/p\u003e \u003cp\u003eIsn’t Share of Wallet Just a Function of a Brand’s Reach (i.e., Penetration)? 156\u003c\/p\u003e \u003cp\u003eVisit www.walletrule.com 157\u003c\/p\u003e \u003cp\u003eAcknowledgments 159\u003c\/p\u003e \u003cp\u003ePrincipal Contributors 159\u003c\/p\u003e \u003cp\u003eAbout the Authors 187\u003c\/p\u003e \u003cp\u003eTimothy Keiningham, PhD 187\u003c\/p\u003e \u003cp\u003eLerzan Aksoy, PhD 188\u003c\/p\u003e \u003cp\u003eLuke Williams 189\u003c\/p\u003e \u003cp\u003eAlexander Buoye, PhD 189\u003c\/p\u003e \u003cp\u003eNotes 191\u003c\/p\u003e \u003cp\u003eIndex 211\u003c\/p\u003e","brand":"John Wiley \u0026 Sons Inc","offers":[{"title":"Default Title","offer_id":49406970429783,"sku":"9781119037316","price":14.39,"currency_code":"GBP","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0817\/1739\/5799\/files\/9781119037316.jpg?v=1730497738","url":"https:\/\/bookcurl.com\/products\/the-wallet-allocation-rule-9781119037316","provider":"Book Curl","version":"1.0","type":"link"}