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Customer Loyalty isn’t enough. Grow your share of wallet.

Timothy L. Keiningham, Lerzan Aksoy, Alexander Buoye, and Bruce Cooil, in Havard Business Review, 10/2011

Companies spend a great deal of time and money trying to improve customer loyalty by measuring and managing metrics like satisfaction and Net promoter scores. But traditional gauges of loyalty correlate poorly with what matters most: share of wallet. This is the percentage of a customer's spending within a category that's captured by a given brand, or store or firm. Customers may be very satisfied with your brand and happily recommend it to others – but if they like your competitors just as much (or more), you're losing sales. A new tool – the Wallet Allocation Rule – shows the best way to pull ahead of competitors.