Most new approaches rely on anecdotes to support their claims (e.g. “Firm X adopted this new approach, and it transformed its business”). Although it is always nice to have a story, anecdotes mean something only if they are proved to work across companies and industries.
As these different investigations make clear, the Wallet Allocation Rule has undergone numerous, rigorous scientific tests. More important, it has passed them all!
The article that introduced the Wallet Allocation Rule, a powerful tool for strongly linking commonly used loyalty metrics to share of wallet.
Managers often assume that improving customer satisfaction and financial performance go hand in hand. The reality, however, is much more complex.
A thorough review of the scientific literature explaining the underlying theory and research for why the Wallet Allocation Rule works and traditional metrics (such as satisfaction and NPS) do not when linking to customer behavior.
A rigorous examination of 79,543 consumers who provided 258,743 observations regarding the brands that they use (over 650 brands) covering 20 industries from 15 countries examining the relationship between the Wallet Allocation Rule (and other approaches) and share of wallet.
A rigorous examination of 4,712 banking customers across the USA. The findings confirmed that the Wallet Allocation Rule strongly links to customers’ share of deposit allocations.
A comparison of the Wallet Allocation Rule with two other approaches (based upon the Zipf Distribution) in linking to share of wallet.