The Wallet Allocation Rule

Table of Contents

1. Title Page
2. Copyright
3. Dedication
4. Preface
   1. Notes
5. Foreword
6. 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 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.
   2. Growth Is Hard to Find
   3. Deconstructing Market Share
   4. Different Metric, Same Outcome
   5. Satisfaction ≠ Market Share
   6. Satisfaction ≠ Share of Wallet
   7. Always Wrong on Average
   8. A Cautionary Tale
   9. The Moral of the Story?
   10. Notes
7. Chapter 2: Eureka! The Discovery of the Wallet Allocation Rule
   1. 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 ...