Commitment Model and Share of Wallet Predictor
How it works:
Commitment is defined as an emotional attachment in the sense of a deep conviction and personal identification with a provider, product or brand. The dimensions of commitment are
- attractiveness of alternatives
Customer loyalty is defined as loyal behaviour. A customer is generally seen to be loyal to a provider or brand if he always or repeatedly spends a high share of his overall expenditure on this provider or brand. Customers who repeatedly buy a certain brand without identifying with it (=uncommitted) are loyal in their behaviour, but not in their attitude. Customers who also identify with the brand (=committed) are loyal both in their behaviour and in their attitude.
The Share of Wallet Predictor starts off with a simple equation:
Predicted Share = Commitment Score + Barriers Score
Loyal behaviour is explained as the combination of an attitude component and barriers that have nothing to do with attitude, but which influence behaviour.
The model used by Anovum to explain behaviour takes into account results of the latest research in psychology, neuroscience and market research. It can better explain decision-making processes and polling behaviour than currently used concepts.
Uses of the Commitment Model and theShare of Wallet Predictor:
B2B and B2C.
Customer loyalty analyses , customer value analyses, image and brand analyses , reputation analyses, analyses of potential, Enterprise Feedback Management (EFM) , segmentation, polling and voting analyses.
The Commitment Model is a method that can be employed universally to examine the attitude relevant to people’s decision-making. Because of its universal applicability, it is suitable for all situations where you try to explain why people make certain choices. The Share of Wallet Predictor, a more comprehensive version of the model including barrier effects that can interfere between commitment and behaviour, allows us to make a prognosis of the share of wallet.
The Commitment Model used by Anovum is based on the ideas published by Dr. Jan Hofmeyr and Butch Rice on how to measure and analyse customer loyalty.
To find out more about the Commitment Model and the Share of Wallet Predictor please contact us.