New York, NY - Marketers know that strong relationships with their customers are crucial to their success. Ipsos Loyalty’s newest research solution is designed to help turn CRM (Customer Relationship Management) into increased share of wallet, and ultimately share of market. Aimed at helping executives understand the share of wallet dynamics in their businesses, in every industry sector, Ipsos Loyalty has launched a new solution called Wallet Allocation Optimizer (WAO!).
This new product is the result of comprehensive research and development proving that most of the common measures of customer performance are used in an overly simplified way by many brands and have little connection to real business results. The R&D study, conducted across nine countries through surveys with over 17,000 consumers, covers every major industry sector and provides eye opening results for executives who measure customer success by simple metrics such as satisfaction or retention.
WAO! is based off of award-winning and Harvard Business Review published thinking, led by Dr. Timothy Keiningham, Chief Strategy Officer at Ipsos Loyalty. “The value of WAO! lies in the fact that it provides executives with a customer relationship metric and a system of understanding, which relates directly to financial performance and business success,” says Dr. Keiningham. “WAO! provides leaders with a rich understanding of share of wallet dynamics in their businesses and eliminates the problems of using inadequately customer relationship metrics such as retention and recommendation.”
Ipsos Loyalty recognizes that satisfaction and performance measurements are and will remain very important to evaluate how companies service their clients. But they do not capture everything.
“These are useful metrics to set goals and incentivize your organization. But satisfaction ratings should not and cannot be used alone to directly drive financial performance,” adds Keiningham. “The same is true with recommendation metrics such as Net Promoter Scores, which correlate poorly with customer spending levels. The key is that rank matters: taking the competitive set into consideration allows a direct link to driving business results.”
“For instance, airlines fall victim to the old trap of confusing retention with loyalty. You can retain a customer without them being loyal; where they spend their money is the story of where their loyalty lies. Lots of airlines retain customers but have really low share of wallet, which means that people are spending just as much money, or more, with the competition. And it’s not just Airlines we see this in, it’s banks, retail, DIY, every major category.”
Ipsos Loyalty’s WAO! provides a creative solution which will help marketers build stronger customer relationships leading to greater business success and more sustainable brands.
To learn more about WAO! please click here to read and view a presentation from Dr. Timothy Keiningham.
For more information on this news release please contact:
John Carroll III
Global Head of Clients
About Ipsos Loyalty
Ipsos Loyalty is the global leader in customer experience, satisfaction and loyalty research and consulting with over 1,000 dedicated professionals located in over 40 countries around the world. Our creative solutions build strong relationships which lead to better results for our clients. This has made us the trusted advisor to the world's leading businesses on all matters relating to measuring, modeling, and managing customer and employee relationships.
For further information contact your local Ipsos office, details at: www.ipsos.com/loyalty.
Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. In October 2011 Ipsos completed the acquisition of Synovate. The combination forms the world’s third largest market research company.
With offices in 84 countries, Ipsos delivers insightful expertise across six research specializations: advertising, customer loyalty, marketing, media, public affairs research, and survey management.
Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media and they measure public opinion around the globe.
Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of €1,363 billion (1.897 billion USD) in 2011.
Visit www.ipsos-na.com to learn more about Ipsos offerings and capabilities.