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Max share for financial institutions

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Rockbridge Associates, Inc.
Rockbridge Associates, Inc.

You know that building a loyal customer base is critical to the success of your financial institution, but the Satisfaction or NPS measures you have place dont seem to link to the amount of banking customers conduct with your institution. Sound familiar? Youre not alone.

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The Proven Link to Share Growth Wallet Allocation Rule速 Certified
Harvard Business Review published research finds: Fewer than 1 in 20 firms achieved net income growth of at least five percent for five consecutive years.* Once growth stalls, the odds of ever resurrecting even marginal growth rates are very low.** Sustainable growth is hard to achieve * MCGRATH, RITA GUNTHER (2012). HOW THE GROWTH OUTLIERS DO IT, HARVARD BUSINESS REVIEW. 90 (JANUARY-FEBRUARY), 110-116. ** OLSON, MATTHEW S., DEREK VAN BEVER, AND SETH VERRY (2008), WHEN GROWTH STALLS, HARVARD BUSINESS REVIEW. 86 (MARCH), 50-61
TWO PATHS TO GROWTH 1. Acquire new customers. 2. Grow spending with existing customers.
THE PROBLEM: CURRENT METRICS DO NOT LINK TO CUSTOMER SPENDING On average Satisfaction & Net Promoter Score explain only 1% of customers share of spending.
CUSTOMER SATISFACTION HAS LITTLE RELATION TO MARKET SHARE Wells Fargo Citi Bank of America Chase ALL Credit Unions 0% 20% 60 70 80 90 MARKETSHARE SATISFACTION LEVEL Banks & Credit Unions
THE REASON STANDARD METRICS FAIL AND THE WALLET ALLOCATION RULE WORKS: Janet and John appear to be equally satisfied. Both would be classified as Promoters using the Net Promoter Score (NPS) system. Satisfaction Ratings Do Not Tell Enough of the Story
Everything Is Relative to Competition Janet & John also use the same two competitors, but rate them very differently.
Rank Matters! Different ranks result in different spending behaviors. Janet is going to spend significantly more with your company than John will.
Backed by rock-solid science. THE SOLUTION: MaxShare: A True Predictor of Share Growth The Rockbridge MaxShare solution is the only Wallet Allocation Rule速 Certified product on the marketas a result, it is proven to link to share growth. A revolutionary new discoverythe Wallet Allocation Rule速 strongly links satisfaction and loyalty metrics to share of wallet. The Wallet Allocation Rule速 was introduced in the Harvard Business Review and won the Next Gen Disruptive Innovation Award. The Wallet Allocation Rule速 has undergone numerous, rigorous scientific tests. More important, it has passed them all! The Wallet Allocation Rule速 was created by Rockbridge Chief Strategy and Client Officer Tim Keiningham, Ph.D. (with academic colleagues from Fordham University and Vanderbilt University).
* NOTE: MAXSHARE USES THE WALLET ALLOCATION RULE速 TO CALCULATE SHARE OF WALLET. KEININGHAM, TIMOTHY L., BRUCE COOIL, EDWARD C. MALTHOUSE, ALEXANDER BUOYE, LERZAN AKSOY, ARNE DE KEYSER, AND BART LARIVIRE (2015), PERCEPTIONS ARE RELATIVE: AN EXAMINATION OF THE RELATIONSHIP BETWEEN RELATIVE SATISFACTION METRICS AND SHARE OF WALLET, JOURNAL OF SERVICE MANAGEMENT. VOL. 26, NO. 1, 2-43. 0 0.1 0.2 0.3 0.4 0.5 Net Promoter Score Recommend Intention Satisfaction MaxShare* Correlation to Changes in Share of Wallet Over Time THE PROOF Strong Correlations to Changes in Share of Wallet
DATA FROM: LERZAN AKSOY (2013), LINKING MEMBER SATISFACTION TO SHARE OF DEPOSITS: APPLYING THE WALLET ALLOCATION RULE IN CREDIT UNIONS, PUBLICATION NUMBER 290 (2/13), MADISON, WI: FILENE RESEARCH INSTITUTE. MY CREDIT UNION IS A PSEUDONYM FOR A USA-BASED CREDIT UNION. MaxShare Identifies Where Your Customers Money is Going NumberofFinancialInstitutions UsedbyMyCustomers
TIMOTHY KEININGHAM, LERZAN AKSOY, AND LUKE WILLIAMS, WITH ALEXANDER BUOYE (2015), THE WALLET ALLOCATION RULE: WINNING THE BATTLE FOR SHARE, HOBOKEN, NJ: JOHN WILEY AND SONS, FIGURE 3.6, P. 61. MaxShare Identifies What Really Drives Share, Not Just Satisfaction 0% 10% 20% 30% Environment Range of offer Accessibility Speed Customer service Convenience Drivers of Share of Wallet 0% 10% 20% 30% Convenience Accessibility Speed Customer service Range of offer Environment Drivers of Satisfaction Convenience Environment
TIMOTHY KEININGHAM, LERZAN AKSOY, AND LUKE WILLIAMS, WITH ALEXANDER BUOYE (2015), THE WALLET ALLOCATION RULE: WINNING THE BATTLE FOR SHARE, HOBOKEN, NJ: JOHN WILEY AND SONS, FIGURE 3.6, P. 61. Did you choose your financial institution because it was good at solving problems it created for you? Or is it more likely the fee structure was more desirable? 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Branches Deposit interest Financial advice quality Products offered Internet banking Fee competitiveness In-bank service Complaint resolution Drivers of Satisfaction for Credit Unions 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Internet banking Branches Products offered In-bank service Financial advice quality Deposit interest Complaint resolution Fee competitiveness Drivers of Share of Wallet for Credit Unions
The MaxShare Process Capture metrics relevant to customers category spending Determine share for your brand and competitors Calculate the money going to competitors from your customers Identify precisely why your customers use competitors Prioritize the most impactful share growth opportunities
Its Easy! All satisfaction and loyalty metrics work with MaxShare. The results are the same regardless of the metric you use to gauge the customer experience (e.g. satisfaction, recommend intention, Net Promoter Score, etc.). So you dont need to throw out what you are currently doingyou simply need to apply the MaxShare solution. MaxShare Helps You Grow Provides a true customer view of your performance. Quantifies the money going to competitors from your customers. Identifies what really drives spending. Links to share growth.
FOR MORE INFORMATION PLEASE CONTACT: Joseph Taliuaga Director, Client Development jtaliuaga@rockresearch.com +1 703 757 5213 ext. 23 https://rockresearch.com/

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Max share for financial institutions

  • 1. The Proven Link to Share Growth Wallet Allocation Rule速 Certified
  • 2. Harvard Business Review published research finds: Fewer than 1 in 20 firms achieved net income growth of at least five percent for five consecutive years.* Once growth stalls, the odds of ever resurrecting even marginal growth rates are very low.** Sustainable growth is hard to achieve * MCGRATH, RITA GUNTHER (2012). HOW THE GROWTH OUTLIERS DO IT, HARVARD BUSINESS REVIEW. 90 (JANUARY-FEBRUARY), 110-116. ** OLSON, MATTHEW S., DEREK VAN BEVER, AND SETH VERRY (2008), WHEN GROWTH STALLS, HARVARD BUSINESS REVIEW. 86 (MARCH), 50-61
  • 3. TWO PATHS TO GROWTH 1. Acquire new customers. 2. Grow spending with existing customers.
  • 4. THE PROBLEM: CURRENT METRICS DO NOT LINK TO CUSTOMER SPENDING On average Satisfaction & Net Promoter Score explain only 1% of customers share of spending.
  • 5. CUSTOMER SATISFACTION HAS LITTLE RELATION TO MARKET SHARE Wells Fargo Citi Bank of America Chase ALL Credit Unions 0% 20% 60 70 80 90 MARKETSHARE SATISFACTION LEVEL Banks & Credit Unions
  • 6. THE REASON STANDARD METRICS FAIL AND THE WALLET ALLOCATION RULE WORKS: Janet and John appear to be equally satisfied. Both would be classified as Promoters using the Net Promoter Score (NPS) system. Satisfaction Ratings Do Not Tell Enough of the Story
  • 7. Everything Is Relative to Competition Janet & John also use the same two competitors, but rate them very differently.
  • 8. Rank Matters! Different ranks result in different spending behaviors. Janet is going to spend significantly more with your company than John will.
  • 9. Backed by rock-solid science. THE SOLUTION: MaxShare: A True Predictor of Share Growth The Rockbridge MaxShare solution is the only Wallet Allocation Rule速 Certified product on the marketas a result, it is proven to link to share growth. A revolutionary new discoverythe Wallet Allocation Rule速 strongly links satisfaction and loyalty metrics to share of wallet. The Wallet Allocation Rule速 was introduced in the Harvard Business Review and won the Next Gen Disruptive Innovation Award. The Wallet Allocation Rule速 has undergone numerous, rigorous scientific tests. More important, it has passed them all! The Wallet Allocation Rule速 was created by Rockbridge Chief Strategy and Client Officer Tim Keiningham, Ph.D. (with academic colleagues from Fordham University and Vanderbilt University).
  • 10. * NOTE: MAXSHARE USES THE WALLET ALLOCATION RULE速 TO CALCULATE SHARE OF WALLET. KEININGHAM, TIMOTHY L., BRUCE COOIL, EDWARD C. MALTHOUSE, ALEXANDER BUOYE, LERZAN AKSOY, ARNE DE KEYSER, AND BART LARIVIRE (2015), PERCEPTIONS ARE RELATIVE: AN EXAMINATION OF THE RELATIONSHIP BETWEEN RELATIVE SATISFACTION METRICS AND SHARE OF WALLET, JOURNAL OF SERVICE MANAGEMENT. VOL. 26, NO. 1, 2-43. 0 0.1 0.2 0.3 0.4 0.5 Net Promoter Score Recommend Intention Satisfaction MaxShare* Correlation to Changes in Share of Wallet Over Time THE PROOF Strong Correlations to Changes in Share of Wallet
  • 11. DATA FROM: LERZAN AKSOY (2013), LINKING MEMBER SATISFACTION TO SHARE OF DEPOSITS: APPLYING THE WALLET ALLOCATION RULE IN CREDIT UNIONS, PUBLICATION NUMBER 290 (2/13), MADISON, WI: FILENE RESEARCH INSTITUTE. MY CREDIT UNION IS A PSEUDONYM FOR A USA-BASED CREDIT UNION. MaxShare Identifies Where Your Customers Money is Going NumberofFinancialInstitutions UsedbyMyCustomers
  • 12. TIMOTHY KEININGHAM, LERZAN AKSOY, AND LUKE WILLIAMS, WITH ALEXANDER BUOYE (2015), THE WALLET ALLOCATION RULE: WINNING THE BATTLE FOR SHARE, HOBOKEN, NJ: JOHN WILEY AND SONS, FIGURE 3.6, P. 61. MaxShare Identifies What Really Drives Share, Not Just Satisfaction 0% 10% 20% 30% Environment Range of offer Accessibility Speed Customer service Convenience Drivers of Share of Wallet 0% 10% 20% 30% Convenience Accessibility Speed Customer service Range of offer Environment Drivers of Satisfaction Convenience Environment
  • 13. TIMOTHY KEININGHAM, LERZAN AKSOY, AND LUKE WILLIAMS, WITH ALEXANDER BUOYE (2015), THE WALLET ALLOCATION RULE: WINNING THE BATTLE FOR SHARE, HOBOKEN, NJ: JOHN WILEY AND SONS, FIGURE 3.6, P. 61. Did you choose your financial institution because it was good at solving problems it created for you? Or is it more likely the fee structure was more desirable? 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Branches Deposit interest Financial advice quality Products offered Internet banking Fee competitiveness In-bank service Complaint resolution Drivers of Satisfaction for Credit Unions 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Internet banking Branches Products offered In-bank service Financial advice quality Deposit interest Complaint resolution Fee competitiveness Drivers of Share of Wallet for Credit Unions
  • 14. The MaxShare Process Capture metrics relevant to customers category spending Determine share for your brand and competitors Calculate the money going to competitors from your customers Identify precisely why your customers use competitors Prioritize the most impactful share growth opportunities
  • 15. Its Easy! All satisfaction and loyalty metrics work with MaxShare. The results are the same regardless of the metric you use to gauge the customer experience (e.g. satisfaction, recommend intention, Net Promoter Score, etc.). So you dont need to throw out what you are currently doingyou simply need to apply the MaxShare solution. MaxShare Helps You Grow Provides a true customer view of your performance. Quantifies the money going to competitors from your customers. Identifies what really drives spending. Links to share growth.
  • 16. FOR MORE INFORMATION PLEASE CONTACT: Joseph Taliuaga Director, Client Development jtaliuaga@rockresearch.com +1 703 757 5213 ext. 23 https://rockresearch.com/