By Timothy L. Keiningham
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* the global B2B industry is predicted at US $1,000 million * a vital consultant that makes a speciality of center talents associated with the burgeoning MRS education and skills courses * Written by means of an skilled practitioner * includes real-life case stories highlighting key B2B concerns * Of curiosity to scholars, industry researchers, sellers and normal administration company to enterprise marketplace study refers to analyze that's undertaken totally in the company global.
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Extra info for The Wallet Allocation Rule: Winning the Battle for Share
For most sectors, the relationship between companies' customer satisfaction/NPS levels and their market shares is negative. In other words, higher company (or brand) satisfaction/NPS levels tend to correspond to lower market share. The first reaction of most managers to this fact is disbelief. After all, the press is filled with articles from consultants and business pundits that purport to show how improving satisfaction/NPS leads to amazing market share success. Although we have no doubt that these pundits can point to examples of firms that grew while increasing their satisfaction/NPS scores (just as every miracle weight loss cure has testimonials to support their claims), the data supporting a negative relationship are too overwhelming to deny.
We coauthored several books (Loyalty Myths,2 Return on Quality,3 The Customer Delight Principle,4 and Why Loyalty Matters5) and award-winning papers so that the business community could gain from our insight and avoid the pitfalls we found. , satisfaction and Net Promoter Score) are so weakly correlated to customers' share of category spending with the brands that they use that the metrics are managerially irrelevant. This problem challenged everything we believed about customer satisfaction and loyalty.
Niche brands must appeal to a small, more homogeneous group to survive. The fact that firms with more similar customer bases tend to have higher satisfaction provides managers with another uncomfortable reality. Customer satisfaction ratings can increase as a result of a decline in market share. For example, an examination of the ACSI shows that Burger King's satisfaction levels rose over the same time period that it was losing share to McDonald's and Wendy's, dropping it from the second- to the third-largest fast food burger chain.
The Wallet Allocation Rule: Winning the Battle for Share by Timothy L. Keiningham