MaxShare™ is an actionable, predictive measurement system that enables companies to achieve higher growth. Traditional metrics like the Net Promoter Score (NPS) are inherently limited by failing to incorporate competitive context. MaxShare™ applies a scientific concept called the “Wallet Allocation Rule®” to incorporate competitive context to create a highly predictive measure of share. The MaxShare™ score matters to managers because it reflects long-term brand loyalty and market share, so a higher score translates into higher sales. Improving the score translates directly into increased share.
The Challenge.
The overriding goal of any growth-oriented company is to increase its share of business, which includes share of wallet among existing customers and market share within the wider marketplace. To achieve their growth goals, companies will continuously track their performance with KPIs such as the Net Promoter Score (NPS) among customers or brand consideration among prospects. These metrics are vital in setting goals and identifying priorities (based on the factors that drive them), but they can be highly misleading, as revealed by groundbreaking research published by Illuminas strategic advisor, Dr. Tim Keiningham and his colleagues. The flaws in the metrics are revealed in their best-selling book The Wallet Allocation Rule: Winning the Battle for Share and the underlying science has been vetted in peer-reviewed journals and the Harvard Business Review. The research quantifies what we already know, which is that all buyer decisions constitute choices exercised among a set of competing alternatives. The most share inevitably goes to the brands that are the “best”. Single-measure metrics like the NPS are limited by a lack of context – a brand could have a high score but get a lower share because competitors are equal or better, while a brand with a mediocre score could have a high share because it is the best alternative among the available choices.
Keiningham and his colleagues discovered that it is possible to predict sharing with an algorithm called the “Wallet Allocation Rule®” which accounts for the number of brands in a choice set and the relative ranking of the brands compared to each other. The metric is highly predictive of share, making it much more actionable for planning than traditional metrics. The metric applies in a wide range of situations and applies to share of wallet or market share, b2c or b2b buying situations, and any industry where buyers have choices. For example, the Illuminas team has applied this science in situations as disparate as predicting credit union members’ share of deposits to a manufacturer offering industrial services to large corporate purchasers.
MaxShare™ puts Wallet Allocation theory to work.
We offer what may be the most powerful tool in the research arena to support growth in share of wallet and market share. MaxShare™ has been continually developed and refined by our data scientists and validated over scores of studies, so clients know it works. The key deliverables include a MaxShare™ score – for your brand and competitors – that sums to 100 percent. It measures earned brand loyalty or market share, and in the long run, harbingers the long-term potential for your brand in the absence of market barriers (e.g., buying policies or store locations). While these metrics are invaluable for assessing your situation and tracking change, MaxShare™ goes a lot further and prescribes how to increase share. Using metrics based on “best” status, our solution identifies your brand’s current equities (drivers of share) and the top opportunities for increasing share. Combined with diagnostic measures, Illuminas can advise your management on the precise directions they need to focus on to grow their share.
There’s no reason not to benefit from MaxShare™.
If your current management is already invested in a KPI like Net Promoter Score, it is not a problem. Our approach keeps the existing metrics in place but adds competitive context to allow truly valid measures of your performance. MaxShare™ also offers some pleasant surprises for respondents and research users. Using a proprietary “best-scaling” approach, surveys can be freed of tedious lists of brand attribute ratings that plague conventional CSAT and brand studies. We also provide a suite of more user-friendly graphics that convey a compelling story for management.
It's all about impact!
MaxShare™ leverages cutting-edge science to transform your brand loyalty and brand equity studies into powerful predictors of share. Contact our experts now for a demonstration of how you can use MaxShare™, based on Wallet Allocation Rule™, to win the battle for share.
