Linking satisfaction to share of deposits: an application of the Wallet Allocation Rule

Lerzan Aksoy (School of Business, Fordham University, Bronx, New York, USA)

International Journal of Bank Marketing

ISSN: 0265-2323

Publication date: 28 January 2014



Despite the fact that customer satisfaction is among the most widely used metrics by managers, the link with share of deposits tends to be weak. Using a recent innovative approach termed the “Wallet Allocation Rule (WAR)” this research investigates whether measuring satisfaction relative to other competitors used exhibits a stronger correlation to share of deposits compared to measuring absolute satisfaction with the focal firm/product.


A survey approach was used with a sample of 4,712 banking customers across the USA. Using the WAR, each respondent's satisfaction ratings were transformed into relative rankings and used to estimate their share of deposits.


The results confirmed that at both the individual and the aggregate level examining relative ranked satisfaction correlates strongly with customers’ share of deposits. At the individual level relative satisfaction explains 55 percent of the variance in share of deposits, as opposed to only 9 percent for absolute satisfaction.

Practical implications

The findings indicate that managers need to rethink their current approach to satisfaction measurement and consider measuring their customers’ satisfaction relative to competitors used. Furthermore, using aggregate level absolute satisfaction in managerial decision making can be misleading.


This research provides a significant contribution to both the banking literature and the scientific literature in general by examining the robustness of a relative metrics approach within the retail banking and credit union market.



Aksoy, L. (2014), "Linking satisfaction to share of deposits: an application of the Wallet Allocation Rule", International Journal of Bank Marketing, Vol. 32 No. 1, pp. 28-42.

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