The Loyalty Effect: The Hidden Force Behind Growth, Profits, and Lasting Value

The Loyalty Effect: The Hidden Force Behind Growth, Profits, and Lasting Value

by Frederick F. Reichheld, Thomas Teal, Thomas Teal
     
 

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The business world seems to have given up on loyalty: many major corporations now lose-and have to replace-half their customers in five years, half their employees in four, and half their investors in less than one. Fred Reichheld's national bestseller The Loyalty Effect shows why companies that ignore these skyrocketing defections face a dismal future of

Overview

The business world seems to have given up on loyalty: many major corporations now lose-and have to replace-half their customers in five years, half their employees in four, and half their investors in less than one. Fred Reichheld's national bestseller The Loyalty Effect shows why companies that ignore these skyrocketing defections face a dismal future of low growth, weak profits, and shortened life expectancy. Reichheld demonstrates the power of loyalty-based management as a highly profitable alternative to the economics of perpetual churn. He makes a powerful economic case for loyalty-and takes you through the numbers to prove it. His startling conclusion: Even a small improvement in customer retention can double profits in your company. The Loyalty Effect will change the way you think about loyalty, profits, and the nature of business.

Author Biography: Fred Reichheld is a Director Emeritus of Bain & Company and a Bain Fellow. He is also the author of Loyalty Rules!. BACK COVER: "Deserves to become a business classic."

-Financial Times

"The Loyalty Effect put loyalty economics on the map."

-The New York Times

"The Loyalty Effect is . . . as close to a religious experience as one can get in the business realm."

-Sun-Sentinel

"[Reichheld's] message is simply this: The best, most profitable employers are those that inspire loyalty among three constituencies: customers, investors, and employees."

-Fortune

Editorial Reviews

Financial Times
Deserves to become a business classic.
New York Times
The Loyalty Effect put loyalty economics on the map.
Sun-Sentinel
The Loyalty Effect is as close to a religious experience as one can get in the business realm.
Fortune
Reichheld's message is simply this: The best, most profitable employers are those that inspire loyalty among three constituencies: customers, investors, and employees.
Booknews
In this reprint of a 1996 work, published with a new preface, business strategy consultant Reichheld outlines an approach to doing business that he calls loyalty-based management. Stressing the importance of building a loyal customer base, he argues that even a small improvement in customer retention can double a company's profits. He also shows the connections between customer, employee, and investor loyalty. He goes on to describe in detail the changes in compensation, organization, and strategy necessary for companies to build relationships worthy of loyalty. Annotation c. Book News, Inc., Portland, OR (booknews.com)

Product Details

ISBN-13:
9781578516872
Publisher:
Harvard Business Review Press
Publication date:
09/01/2001
Edition description:
Reprint
Pages:
323
Sales rank:
202,337
Product dimensions:
6.13(w) x 9.25(h) x 1.00(d)

Meet the Author

Fred Reichheld is a Director Emeritus of Bain & Company and a Bain Fellow. He is also the author of Loyalty Rules!.

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