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Loyalty Marketing |
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What Is the
Wallet Allocation Rule?
In today's competitive marketplace, customer loyalty isn't enough to succeed. It is important to grow share of wallet. This is a percentage of consumer spending within a category, as identified by a brand, store or company. Traditional metrics of loyalty program effectiveness, such as customer satisfaction or Net Promoter Scores, can be greatly enhanced by measuring share of wallet.
Too many loyalty programs focus on customer retention rather than getting existing customers to increase spending. So while retailer and consumer packaged goods companies might keep customers, they also could lose much of their share of wallet to competitors
"Customers are not loyal to just your brand. They are not monogamous. Your customers are fooling around on you," said Matthew McNerney, president, Ipsos Loyalty US. "They shop a portfolio of different companies, but we are treating them as though you are the only one that they come to. That's not the way to think...
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