Share of Mind Leads to Share of Wallet

by: Mark Johnson, President & CEO, Loyalty 360

Several analysts have given Apple Inc. (NASDAQ:AAPL) an ‘outperform’  rating.  The company cited customer loyalty as one of the main factors that will contribute to stock performance.  The firm stated that when customers purchase an Apple media or Smartphone product they are more likely to buy Mac computers or other Apple products.

The link between customer loyalty and stock price performance is the ability to create incremental purchase behavior—- how share of mind leads to share of wallet.  The more loyal a customer is in any industry, the less likely they are to purchase from a competitive brand. The brands with the high engagement scores and loyalty metrics are looking to continue to improve on that.

Successful brands like Apple have found a way to differentiate their service, product or offering to create high levels of customer loyalty and engagement. This is we are seeing a growing need in the market for research and the development of a loyalty metric that will validate that the more loyal a person is to a brand, product or merchant, the higher share of wallet that merchant, product or brand has.

The recent situation with Toyota casts an interesting light on the link between share of mind and share of wallet.  There’s no doubt that shareholders are questioning…

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